Business NewsEditors Pick

Malawi to reap from Comesa SMEs fund

The Common Market for Eastern and Southern Africa (Comesa) has said it will soon roll out a fund aimed at providing affordable loans to Small and Medium Enterprises (SMEs) in Malawi and other member States.

Comesa secretary general Sindiso Ngwenya made the hint in Lilongwe on Thursday during the official launch of the Federation of Associations of Business Women in Central and Eastern Africa (Femcom) secretariat in Lilongwe.

Ngwenya: This fund provides affordable rates
Ngwenya: This fund provides affordable rates

Femcom works with networks of business groups in all its member countries and in Malawi the institution is working in clusters of leather, cassava and textile where it provides technical assistance on processing and business management, market linkages and exposure through trade exhibitions.

“The difference between this fund and the existing financial service providers is affordable rates. A study that was done revealed that, on average, SMEs pay about 50 percent in interest rates for loans as the big companies pay only 15 percent in the region,” said Ngwenya without providing modalities of the fund.

But he said the funds will greatly benefit SMEs within the trade bloc whom he said are reeling from lack of accesss to capital to boost their respective businesses.

In Malawi, SMEs are generally regarded as an engine for economic growth as they generate jobs for the unemployed, among other multiplier effects.

But for many years, SMEs have cried foul over rigidities in the country’s financial system in their pursuit to access loans to expand their businesses.

The Comesa secretary general also said at the event that following the handover of the land by Malawi government for the construction of Femcom secretariat, a tender for designs of the complex will be issued within the next three months to be followed by construction.

Speaking at the event, President Joyce Banda, who officially launched the secretariat, said the complex, once completed, will house several facilities such as business incubation centre, science and technologycentre and business technical assistance centre, among others, which will facilitate the support to business women groups within the region.

However, Banda urged the Comesa secretariat to accelerate women economic empowerment fund which has been in the pipeline for some time.

“Women cannot afford to wait any longer. Poverty continues to rob these women of their dignity as many of them continue to sleep on empty stomach,” said Banda who was awarded a certificate of recognition from Femcom at the same event.

Related Articles

Back to top button