By Justin Mkweu:
President Peter Mutharika has urged beneficiaries of the newly launched Malawi Enterprise Development Fund (Medf) to repay the loans in time.
Speaking during the launch of Youth and Women Loan Programme in Blantyre yesterday, Mutharika said that non-payment of loans for previous projects affected progress.
“The previous programnes suffered a serious setback of loan default because they did not have measures to safeguard against non-payment of loans. Let us cultivate the spirit of being responsible and paying back the loans because this is a loan and not a gift,” Mutharika said.
Medf Chief Executive Officer (CEO), Mervis Mangulenje, sounded positive that they will manage to recover the loans and lend them to other youth and women.
“I can confidently confirm that on average, we are able to recover 95 percent of our loans with our previous programmes, so we are optimistic that this programme will follow suit,” the CEO said.
The loans target underprivileged women and youths across the country and have been categorized into two main groups for those without capital and those who want to grow their enterprises.
Medf, which evolved from Mardef, was formed by an Act of Parliament in February 2014 as the only microfinance limited company owned by the government.