GIZ Malawi has signed a Memorandum of Understanding (MOU) with MyBucks Banking Corporation aimed at improving formal agricultural financing for farmers and agri-based enterprises in rural areas in the country.
The deal is under GIZ’s Promotion of Agricultural Finance in Rural Area (AgFin) programme.
The parties aim at contributing to improved access to adapted and/ or tailored financial services for 10,000 farmers and 120 agri-based rural enterprises through capacity building of financial service providers as well as targeted farmers and agri-based enterprises.
Speaking during the signing ceremony recently, GIZ AgFin- Team Leader Harald Neimeier said the project is being implemented in several African countries including Benin, Burkina Faso, Cameroon, Mali, Nigeria, Togo and neighbouring Zambia.
“Malawi, which started its implementation in 2020, has a chance to learn from other countries’ experiences in developing tailor-made financial solutions for both farmers and agri-based enterprises,” he said.
Through the project, GIZ will catalyse development of tailored financial services thereby bridging the access-to-finance gap and will encourage both the supply and the demand side to embrace digital channels for service delivery.
Together with My Bucks Banking Corporation, GIZ will contribute to the expansion of FinTech to rural farmers and SMEs.
MyBucks Banking Corporation Chief Commercial Officer Bernard Mkandawire rated the deal as a game-changer.
“We are excited to partner GIZ in this project to serve farmers and agri-based enterprises with adapted financial solutions.
“This is a positive step towards our aspiration to making social impact in the communities that we operate in. The bank is also looking to advance the technical capacity of its staff in developing financial products for the agriculture sector through the technical support it will receive from the project and other initiatives,” he said.
MyBucks Malawi has branches in Lilongwe, Blantyre, Mzuzu, Zomba, Mangochi, Dzaleka, Kasungu and Madisi.