National Economic Empowerment Fund (Neef) has disbursed K2.99 billion out of the K5 billion that the government allocated for the purpose.
Neef acting Chief Executive Officer Humphrey Mdyetseni said the funds were meant for distribution to 1,429 groups.
The fund resumed loan disbursements in February this year after rebranding.
“By the end of this financial year, we are confident that we would have disbursed K15 billion,” Mdyetseni said.
He said he was optimistic that Neef would exhaust disbursing K5 billion by mid next month and that they have been assured that the government would replenish the fund with an additional K10 billion.
“Neef has changed loan procedures and the process to seal glaring gaps in controls that were noted from the 2020 Central Internal Audit Unit report. The aim is to ensure that the loans go to credible borrowers that can be traced and eventually repay,” Mdyetseni said.
Speaking when he presented a provisional national budget in June last year, Finance Minister Felix Mlusu said the government had increased the youth loans under the then Malawi Enterprise Development Fund from K15 billion to K40 billion, adding that the amount would eventually be increased to K75 billion
“With this, government intends to create 200,000 enterprises run by the youth, which will create over 600,000 jobs,” Mlusu said.