By Wezzie Gausi:
The Smallholder Farmers Fertiliser Revolving Fund of Malawi (SFFRFM) has revealed its plans of borrowing K40 billion from National Bank of Malawi as part of securing working capital.
Addressing the Parliamentary Cluster on Agriculture and Natural Resources, SFFRFM Chief Executive Officer Richard Chikunkhuzeni said the institution opted for borrowing whilst awaiting the government to recapitalize the organisation.
He said a recapitalisation proposal was already presented to the government in 2023 for consideration. “We want the Cluster to help us lobby the government to recapitalize SFFRFM. Borrowing from commercial banks will be expensive for the fund,” Chikunkhuzeni said.
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Cluster Co-chairperson Sameer Suleman said it was sad that the institution may end up just like Admarc.
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He said the government should ensure SFFRFM is as independent as possible for it to be able to perform its duties properly.
“We also understand that the government owes this entity. Let the Treasury pay back this loan in the form of recapitalization for SFFRFM to be back on its toes,” Suleman said.
During the 2023/24 financial year, SFFRFM planned and got PPDA approval to procure 67, 090 tonnes of maize and tobacco fertilisers.
