FInES Injects $66m into Malawi’s MSMEs, Fueling Growth and Prosperity
Key Business Points
- The World Bank-funded Financial Inclusion and Entrepreneurship Scaling (FInES) Project has disbursed over $66 million to micro, small, and medium enterprises in Malawi since 2021, exceeding its initial target of $47 million.
- The project has supported over 48,800 businesses nationwide, with a focus on women and youth, who accounted for the bulk of beneficiaries, including 32,396 women-led enterprises and 9,201 youth-owned businesses.
- The project’s financing model has been designed to make credit affordable, with interest rates capped at 14 percent, and has contributed to enterprise growth, facilitating the establishment of 98 new medium-size enterprises.
The Financial Inclusion and Entrepreneurship Scaling (FInES) Project, funded by the World Bank, has made significant strides in supporting Malawi’s business community. Since its inception in 2021, the project has disbursed over $66 million to micro, small, and medium enterprises (MSMEs) nationwide, exceeding its initial target of $47 million. This injection of capital has improved access to affordable finance, creating jobs and strengthening business capacity. The project’s focus on women and youth has been particularly notable, with 32,396 women-led enterprises and 9,201 youth-owned businesses accessing the funds.
According to FInES Project Manager Ralph Tseka, the financing model was designed to make credit affordable while leveraging the capacity of existing financial institutions to assess borrowers. The project signed subsidiary financing agreements with banks, microfinance intermediaries (MFIs), and savings and credit cooperatives (Saccos), under which the institutions were required to on-lend the funds to MSMEs at interest rates capped at 14 percent. Tseka noted that the funds have had a tangible impact on the ground, with small-scale businesses benefiting from the affordable financing.
The project has also contributed to enterprise growth, facilitating the establishment of 98 new medium-size enterprises, some of which received quasi-equity financing through the Malawi Agriculture and Industrial Investment Corporation. Despite the full utilization of the line of credit, demand for affordable SME financing remains high, with banks and microfinance institutions continuing to submit requests for additional funding. Tseka highlighted that loan performance under the project has remained strong, with non-performing loans at about 3 percent, below the 5 percent threshold.
As the project comes to an end in March 2026, proposals have been submitted to the government on how the intervention could be sustained beyond the current project, including the possible establishment of an Apex fund that would recycle loan repayments and continue lending to MSMEs through financial institutions. Discussions are also underway on a successor project, with lessons from the first phase expected to focus on production, exports, and import substitution to ease pressure on foreign exchange.
One of the beneficiaries of the low-cost loans is Roseberry Farms, a horticulture firm supplying produce to Shoprite. Managing Director Ruth Kalima emphasized that access to affordable capital is critical for unlocking the sector’s potential to contribute to economic growth and food security. Kalima noted that there is a huge gap in horticulture in Malawi and that more focus is needed to address the foreign exchange challenges facing the country. The firm used a loan accessed through NBM Development Bank to procure additional greenhouses, but Kalima added that more financing is required to expand operations and meet growing demand. As the FInES Project comes to a close, it is clear that its impact will be felt for years to come, and its legacy will continue to shape the business landscape in Malawi, with zinthu zikugwira ntchito (things working) for the benefit of local entrepreneurs and the economy as a whole.
What are your thoughts on this business development? Share your insights and remember to follow us on Facebook and Twitter for the latest Malawi business news and opportunities. Visit us daily for comprehensive coverage of Malawi’s business landscape.
- FInES Injects $66m into Malawi’s MSMEs, Fueling Growth and Prosperity - December 17, 2025
- Navigating Malawi’s Trade Gap: Opportunities for Growth and Economic Resurgence - December 17, 2025
- Malawi Airlines Expands Horizons: New Entebbe Route Takes Flight, Opening Fresh Trade and Investment Avenues - December 17, 2025