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Neef disburses K37 billion in loans

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By Wezzie Gausi

The National Economic Empowerment Fund (Neef) has said it has disbursed K37 billion in loans to 110,000 people as of June 2022.

Neef has also disclosed plans to disburse K75 billion to 300,000 Malawians by 2024.

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Neef Chief Executive Officer Humphrey Mdyetseni told reporters in Lilongwe on Monday that of the K37 billion disbursed, K15 billion has been given to women while K16 billion has been given to youths across the country.

Mdyetseni said to cater for the establishment of micro industries, they have raised the minimum loan amount to K250,000 and maximum adjusted upwards to K250 million.

“Malawi Enterprise Development Fund (Medef) highest interest rate was at 5.8 percent and lowest at 4.2 percent. Neef lowest rate is 2 percent and consumption loans are at 4 percent. Medef only offered eight loan products.

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“Neef has diversified them to 18 as a way of trying to cater for all Malawians. We have adjusted the upwards age limit of 60 years to 75 in order to give those in their ripe age access to loans and engage in economic activities,” Mdyetseni said.

In an interview, Youth and Society (Yas) Executive Director Charles Kajoloweka expressed gratitude with the progress Neef has registered so far.

“The repayment of these loans is very critical. So we would like to see to it that all youths that have benefited have paid back the loans. In the past the initiative was heavily politicized, so we would want to see Neef moves out of that.

“Let the young people who have benefited be responsible enough to pay back the loans because by the end of the day Neef has to be self-sustaining,” Kajoloweka said.

Recently, the government asked the National Economic Empowerment Fund (Neef) to find other means of recovering about K9 billion in bad loans extended between 2012 and 2014.

The fund wanted the money to be written off because borrowers, most of whom are said to be politically-linked persons, cannot be traced.

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