The European Investment Bank (EIB) has partnered First Capital Bank (FCB) to provide an investment boost to smallholder farmers, agricultural companies and cooperatives across Malawi.
The partnership will see the financial institutions, with support from the European Union (EU), pumping about €12.5 million (at least K11.2 billion) into the local agriculture sector.
The move is a complement to the ‘Kulima—Promoting farming in Malawi’ programme.
According to a statement issued on behalf of EIB, FCB has joined Ecobank, another EIB partner, to reach a total boost of €50 million for the two banks in new financing for agricultural investment.
FCB Deputy Chief Executive Officer Agness Jaza said increasing high impact agricultural investment is crucial for Malawi.
“This new partnership between First Capital Bank, the European Investment Bank and the European Union will benefit thousands of smallholder farmers across our country and unlock economic opportunities from sustainable agriculture in the years ahead,” she said.
Vice President for EIB said agriculture was important in social development.
“The European Investment Bank recognises the importance of agriculture for both economic activity and social development.
“This latest partnership with First Capital Bank will unlock investment by smallholders across Malawi facing challenges of climate change and the Covid pandemic. The EIB is pleased to support this visionary Team Europe Kulima initiative that tackles barriers to agricultural investment,” the statement reads.