The Reserve Bank of Malawi (RBM) has urged Microfinance institutions in the country to have tailor-made services targeting Micro, Small and Medium Enterprises (MSMEs) to access financial packages that will enable them venture into commercial agriculture.
RBM Executive Director for Registration Patrick Mhango said MSME’s comprise close to 90 percent of people that are doing business in the country and have the ability to improve the country’s economy if well supported.
Mhango was speaking in Mangochi at the second Malawi Microfinance Network (Mamn) microfinance annual lakeshore conference.
Mhango said some of the challenges MSMEs are facing include collateral, lack of corporate governance and capacity to fully keep records that can help them establish the direction of their businesses.
“Without having tailor made financial products targeting them most of them are at risk of being taken out of business,” he said.
He said this is why micro financial institutions in the country should be inclusive enough in their service delivery.
Mamn Board Chairperson Elias Kafinyangwe said their institution has already started partnering with other organizations to have services that are accessible to MSMEs in the country as a way of beating challenges which limit their access to finance.
Meanwhile, the International Fund for Agricultural Development country representative Bernadette Mukonyora said her organisation is ready to assist unlock some lines of credit so that people in rural communities can access finances towards increasing agricultural productivity.
