National Bank of Malawi (NBM) plc has introduced a farm infrastructure and implements loan facility to aid eligible small-scale and estate sub-sector farmers in acquiring agricultural equipment and other farm implements.
Speaking in Lilongwe last week, NBM plc business development manager for agriculture Samuel Ngwira said there is need to enhance agricultural sector growth to aid the country’s development.
He said small-scale farmers in agri-business sector face many challenges, which include lack of access to funding for investment in agricultural equipment and other farm implements.
Said Ngwira: “The farm infrastructure and implements facility presents itself as part of the solution to this problem. The facility will also spur salaried employees that have sizeable idle land to venture into commercial farming.
“The facility is further aimed at unlocking cash flow by assisting farmers refinance their already existing equipment.”
He said the facility will cover a comprehensive range of agricultural equipment for irrigation, solar, borehole drilling, land preparation and oil extraction, among others.
Farmers Union of Malawi president Frighton Njolomole commended NBM plc for the initiative, saying it will ease cash flows by spreading the cost over a period of time.
“This is a worthwile initiative that will help farmers in various ways,” he said. Under the facility, commercial farmers can access between K5 million and K200 million while smallholder farmers, clubs, societies and salaried farmers will access amounts ranging from K2 million to K100 million.