UN Malawi creates new business finance for SME’s

UN Malawi has announced the creation of a new business financing in the country for small and medium enterprises SME’s

UN Resident Coordinator Maria Torres said the program which is the first of its kind in Malawi, will provide patient and flexible capital solutions to achieve Sustainable Development Goals

Torres said this is an exciting and ground-breaking initiative that will directly impact mobilization of additional resources for Malawi to support poverty reduction by increasing investments in agriculture, manufacturing and service supply-chains.

She said the whole idea of the program is to de-risk investments, facilitate access to finance for businesses as well as increase productivity by focusing on guaranteeing capital access for the most impactful investments in the production chain.”

“In reducing poverty and hunger, the Joint Program  will support businesses at different levels of growth in the country’s severely undercapitalized productive sectors, working with the private sector to increase productivity using technology and innovation. The program will also promote gender equality by supporting businesses in which women are significantly represented in boards, management, staff, suppliers, or buyers,” explains Torres

The UN Resident Coordinator said one of the targets for the programme in Malawi is to integrate 75,000 small-scale producers as investees in the supply chains to increase their incomes and, in turn, expand the country’s revenue base.

With a total funding of 6.2 billion Kwacha from the Joint SDG Fund, the programme is anticipated to leverage an estimated 28 million dollars in co-financing and 20 million in private investment.“

“With this programme, we are opening opportunities for job creation for youth and women, and boosting Malawi’s growth,” Torres

Malawi is among four countries that were selected from 155 proposals from over 100 country applicants across the globe in the 41 million portfolio of the UN’s Joint SDG Fund.

The other countries are Fiji, Indonesia and Uruguay.