By Mphatso Nkuonera and Lindiwe Munthali
Lilongwe, September 22, Mana: Malawi has pocketed USD 35 million which is equivalent to K27 billion to boost trade for Small and Medium Enterprises (SMEs).
This was made known at Bingu International Convention Centre (BICC) during a 76th United Nations General Assembly (UNGA) side meeting.
Minister of Industry, Roy Kachale, said the money will be disbursed without necessarily requiring collateral, which has for long proved to be a stumbling block for SMEs to access money for business.
United Nations Capital Development Fund has already raised USD 8.1 million (MK6.2 billion) to help traders do better in entrepreneurship.
The money has been allocated to Malawi as one of the least developed countries with women targeted to be economically empowered.
“We must accept that there is shortage of finances to elbow SMEs’ work in a conducive environment. This funding has come at the right time, as such, I urge business operators to get organised for this aid, like setting business and marketing plans,””Kachale said.
United Nations Resident Coordinator, Maria Jose Torres, said the Build Malawi Fund is determined to bail out Malawi’s SMEs so that they improve economically.
“”We want SMEs to do things differently and in a sustainable way so that we change their living standards.
“The Build-Malawi Window, anchored to the Global BUILD Fund, is a specialised blended finance vehicle to boost investment and jobs in the productive sectors of the [country’s] economy,” she said.
The UGA side meeting was conducted under the theme ‘Unlocking Public and Private Finance for the Poor.’’
Other expected results include the integration of 75,000 small scale producers as investees in supply chains; an increase in incomes of participating small-scale producers by 30 per cent; expanded fiscal space with aggregated income taxes of US$19.3 million and strengthening of 15 supply chains.
It is estimated that the window will leverage US$35 million from private investors in the next three years.
UNDP, FAO and UNCDF are jointly implementing the initiative in close coordination with Malawi Government’s Ministry of Trade.
