Business NewsEditors Pick

Medf to reclaim Mardef, Yedf loans

The recently established government finance company, Malawi Enterprises Development Fund Limited (Medf) says it will ensure to reclaim all debts and loans people collected under its disbanded previous institutions.

Medf was formed after government combined Malawi Rural Development Fund (Mardef) Youth Development Fund (Yedf) and will also be responsible for coordinating the Farm Input Loan Programme (Filp) which was previously managed by Mardef to form the biggest government-owned finance institution in the country.

Flashback: Mardef donating tools to young entrepreneurs
Flashback: Mardef donating tools to young entrepreneurs

The move comes as Medf is now undergoing functional reviews ahead of starting operations and past history of political interference leading to several groups defaulting on repaying loans collected from the disbanded institutions.

Speaking in an interview, Medf public relations manager Isaac Mbekeani said the new company will ensure that all outstanding loans under the former projects are repaid.

“What is happening is that Mardef was a government project instituted under a parliamentary resolution and we have changed legal status into a company. Yedf and Filp were also government projects and they have been combined to be part of the new company. There will be no forfeiting of loans as the new company will continue with some of the operations of these institutions although we are currently undergoing a function review,’ said Mbekeani.

Mbekeani revealed that the company has started the process of applying for certification from Reserve Bank of Malawi to operate as a financial institution but said the function review process remains on-going.

“We are delighted by the new status as we now are on our own feet and we stand to get more opportunities to serve the nation better. We will be an independent government entity but we can now also attract other donors and partners,” said Mbekeani.

Apart from Mardef, Yedf and Filp erstwhile schemes, Medf Ltd will also manage portfolios and operations the newly established Economic Empowerment Trust Fund of Malawi (E-Fund) and is expected to become one of the biggest microfinance institutions in Malawi in terms of product portfolio and outreach, the company recently announced.

 

Related Articles

Back to top button