NBM Development Bank, a subsidiary of listed National Bank of Malawi plc, has disbursed K3.5 billion loans for small and medium enterprises development and growth since its inception in 2019.
NBM Development Bank General Manager Bernard Masi said the amount has brought about substantial impact in various sectors of the economy, where the bank is channelling the resources.
Targeted sectors include agriculture, which is deemed too risky by most financial institutions, tourism, manufacturing and energy.
Already, the bank claims to have channelled K1 billion into women-run SMEs, K500 million in ventures for youthful and budding entrepreneurs, K1 billion in the health sector and another K1 billion to SMEs start-ups.
“We have provided funding to a number of SMEs including start-ups. We have also made a lot of impact in terms of job creation, exports development, import substitution, and access to world-class health facilities,” Masi said.
He said, apart from financing the SMEs, the development bank has been pivotal in offering technical support to the SMEs for development and growth.
Masi said while there are concerns among local entrepreneurs over limitations to access finances the development bank is filling in the gap to propel growth.
“We are a game changer in SMEs financing in Malawi. We are financing both existing and start-up SMEs in terms of expanding their businesses or starting new ventures. We are providing start-up capital and this has been a pain for most entrepreneurs with good ideas,” he said.
The bank was set up to provide long-term financing.
The NBM Development Bank is the second financial entity established to provide finance to businesses to promote growth after the government-run Malawi Agricultural Industrial and Investment Corporation.