Medf receives K5.2bn business loan applications

Malawi Enterprises Development Fund (Medf) says it has received loan applications worth K5.2 billion from groups and individuals nationwide seeking start-up capital for various business ventures.

Medf chief executive officer Mervis Mangulenje said on Friday during a media briefing that out of the K15 billion that government allocataed to Medf loans, about K800 million has been disbursed to 5 200 groups in 22 districts nationwide.

She said so far the institution is analysing loan application proposals worth K5.2 billion and that disbursement will be gradual upon completion of the approval processes.

“We are facing challenges in the verification of beneficiaries because some people think that our officers are verifying national identity cards for political reasons,” said Mangulenje.

Minister of Information, Civic Education and Communications Technology Mark Botomani claimed that some people want to obtain a court injunction against Medf loan disbursement due to political reasons, saying such a move is counter-productive and will leave a good number of people suffering economically.

Minister of Finance, Economic Planning and Development Joseph Mwanamvekha said the Medf loans, once effectively implemented, will contribute to poverty alleviation and sustainability of livelihoods and help graduates with innovative business ideas to get business capital.

 In the wake of the novel Coronavirus (Covid-19) pandemic, government announced the allocation of K15 billion to Medf to support individual and small businesses group with capital to enhance their businesses currently struggling due to the pandemic.