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Microfinance Organizations in Malawi

Wisdom Mayuni

Mf Organizations In MwHello everyone, on this page you will find a list of Microfinance organizations in Malawi that can you in various ways, whether it is for your business or personal reasons. To be honest, they have a huge advantage over commercial banks in Malawi, one of the main reasons being that Microfinance institutions in Malawi have a clear focus on making sure you actually stick with them opposed to doing what everyone else does, which is bank with the big guns. Most of these institutions usually give you a personal one on one agent to help you with your account and because they are generally smaller, you don’t have to wait in-line for hours or wait for days for them to answer your emails or phone calls. You can also check a list of banks in Malawi which might suit your needs.

On top of all that, Microfinance organizations also boost entrepreneurship, a country’s economy and boost development. However, entrepreneurship requires financial resources in the form of capital and that is where these Microfinance companies can make a huge impact. There are a number of microfinance institutions that focus on providing entrepreneurs with capital and other programs to promote them.

Fincoop

FINCOOP Limited is a member owned, democratically controlled financial cooperative serving micro, small and medium entrepreneurs, farmers and salaried employees. Registered under the Cooperative Societies Act and operating under the umbrella of Malawi Union of Savings and Credit Cooperatives (MUSCCO)

Contact Fincoop

Technical Entrepreneurial Vocational and Training Authority (Teveta)

TEVETA provides entrepreneurial and vocational training to interested individuals with additional industrial apprenticeship (attachments). It was established in 1999 as a statutory organization through the TEVET Act. It works with both the private and public sector to regulate, promote and facilitate programs in business start up skills but also improve performance in various sectors. TEVETA has focused on educational and technological advancement through programs like the Skills and Technical Education Programme  (STEP) which is funded by the European Union. It has encouraged diversity in industries by concentrating on inclusion of the youth and women. TEVETA has over 40 formally recognized institutions spread across the country.

Contact TEVETA Malawi

TEVETA House, off Independence Drive, City Centre, Lilongwe

 National Economic Empowerment Fund (NEEF)

MARDEF, currently re-established as the National Economic Empowerment Fund (NEEF), is a microfinance institution which offers loans to clients that are formally doing business. Apart from offering business loans, it has partnered with SFFRFM to provide farmers with fertilizer loans. Clients that work in the public sector are eligible for a civil servant loan. NEEF gives out loans to individuals upon successful application based on a prescribed criteria. Though it is 100% government owned, all loan schemes are designed to benefit all Malawians regardless of their political affiliation. The main aim of NEEF is to bring social-economic transformation to enable poor Malawians to be in a position to earn a living. Loan applicants must repay within a given period of time and are required to already have 20% of the proposed loan.

Contacts NEEF Malawi

P.O. Box 779, Lilongwe

Savings and Credit Cooperatives Society (SACCO)

SACCO is a member-based organization that seek to mobilize savings and afford members short term loans. Members also benefit through getting dividends which are based on the amount of money that individuals have saved with the group. A SACCO is a cheaper alternative for traditional banks and lending institutions which its members may not be able to receive financial help from. It is very easy and simple to form a SACCO but it has many different benefits. It encourages members to save and provides loan facilities based on the member’s contributions. Joining a SACCO helps people cultivate financial resources through a saving culture. It is much easier to secure a loan as it requires no special collateral except member savings and shares.

Contact SACCO Malawi

MUSCCO House, Mandala Road, Lilongwe
P.O. Box 651, Lilongwe, Malawi

Small and Medium Enterprise Development Institute (SMEDI)

SMEDI provides research solutions, information, training and support to SMEs with the aim to transform them into formalized and sustainable businesses. It facilitates market linkages for SMEs to enable them to find markets. For example, it participated in the 29th Malawi International Trade Fair partnering with entrepreneurs that showcased their products. Furthermore, it provides training on business matters, such as, financial management. Through sensitization it has undertaken campaigns encouraging entrepreneurship. The primary focus of SMEDI is to facilitate and develop SMEs who are mainly run by domestic entrepreneurs.

Contact SMEDI Malawi

Headquarters
Amina House, off Paul Kagame Highway, Lilongwe
Private Bag 393, Lilongwe 3

Finca Malawi

FINCA Malawi is a microfinance institution which offers simple and fast financial solutions. It offers loans, savings, microinsurance and access to basic financial advisory services to credit groups and individuals. Its range of credit products are designed for entrepreneurs in various industries. The institution provides village bank grant loans with no physical collateral. This removes the financial barriers to receive loans among the poor. Through fixed deposits clients get benefits such as instant payments on accrued interest within a given period. Its individual loans range from K500, 000 to K75, 000, 000 repayable from 6 to 24 months with flexible and affordable collateral requirements. FINCA Malawi serves 28 districts reaching clients from across the country. It focuses on improving women’s entrepreneurial abilities.

Contacts Finca Malawi

Head Office
Plot No. BW 199-202, Henderson Street
Private Bag 382, Chichiri, Blantyre 3

One Village One Product (OVOP) Malawi

OVOP is a national programme for generating incomes and wealth for society through mobilization to produce value added goods and services that are marketable. It identifies individuals that are placed into groups that focus on the production of processed agricultural goods. It was introduced by the government to boost agriculture which is a driving force of the economy. The initiative encourages the mobilization of local human, material and cultural resources to help create value-added products/services for domestic and international markets.

NOTE: They seem to be inactive, their website is down, their facebook page hasn’t been updated in 2 years, a complete embarrassment at this point, we will re-evaluate them in 2 months, if we do not hear anything from them, we will remove them from this page.

Contact OVOP Malawi

You can find out more about licensed Microfinance companies that are operating in Malawi.

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