OIBM, STANDARD BANK INCLUDED IN US CREDIT FUND (Malawi)

12 December 2008 – 12:39:03

by Suzgo Khunga

PUBLISHED BY ‘THE DAILY TIMES’ (Malawi)

Opportunity International Bank of Malawi (OIBM) and Standard Bank signed agreements with the US embassy which allow the two financial institutions to participate in the Development Credit Authority (DCA) programme.

The agreements would enable United States Agency for International Development (Usaid) to enlarge its DCA programme and allow the two banks to lend up to US$13 million (K1.8 billion) to Small and Medium Enterprises (SME’s) in the agriculture and agriculturally linked sectors of the economy until 2014.

Speaking at the signing ceremony, US ambassador to Malawi Peter Bodde congratulated the two banks for targeting SME’s which he said are a critical sector for Malawi’s economic development.

“We all know the human impact these programmes have and how they can make a big difference in improving people’s lives,” Bodde said.

Under the DCA facility, the two banks would increase their SME client portfolio, especially in agricultural sector businesses located in rural areas.

Standard Bank and OIBM would work to provide loans to credit worthy farmers and small agri-businesses that have difficulties meeting normal bank loan conditions.

While commercial banks have often given preference to established urban businesses, the DCA facility is meant to increase lending to promising SME’s and lower their collateral requirements.

Deputy Chairman of OIBM Board of Directors Rodwell Mbale said the collaboration would stimulate productivity of smallholder farmers and allow them to invest in agro-processing industries.

Ministry of Finance Principal Budget Officer Bettie Ngoma who witnessed the signing of the agreements, noted that the initiative was a great way to stimulate microfinance lending by banks.

The US government’s DCA programme is already operational in 23 countries assisting thousands of enterprises to access required finance to achieve and maximise growth.

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PUBLISHED BY ‘THE DAILY TIMES’ (Malawi)

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BUSINESS SECTOR GEARS UP FOR DIVERSITY AWARDS (Malawi)

11:15:27 – 14 November 2008

by Kandani Ngwira

Local companies, institutions, and business trend setters are expected to reap results when Incmedia honours top performers in the socio-economic sector at a Diversity Leader Gala Awards ceremony on November 28, at Sunbird Mt Soche Hotel.

Incmedia Executive Director, Denis Mitole said this year about 15-20 individuals and institutions that have made a huge impact in the socio-economic sector would walk away with the Diversity Leader 2008 awards.

“Through Diversity Leader, we have been inspired by those that have excelled in their sectors, contributed immeasurably to the country’s growth, economically and socially, we have seen the rise of revolutionaries that have taught us that we can achieve anything and we want to recognise them.

“The function has also proved to be a perfect platform for institutional heads, government, business and non-governmental organizations to exchange business cards and to open up further avenues for networking,” he said.

Mitole said preparations for the gala have been finalised and that they are expecting not less than 350 guests to attend the function.

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PUBLISHED BY ‘THE DAILY TIMES’ (Malawi)

MALAWI IDENTIFIES NEW EXPORT MARKET

11:12:34 – 14 November 2008

by Caroline Kandiero

Government has secured an outright order of 15,000 metric tons of red beans to export to Cuba as soon as possible.

Minister of Industry and Trade Henry Mussa said this on Wednesday on his arrival from the country’s 26th International Trade Fair which was held in Havana.

According to Mussa, the hurricanes that were experienced in Cuba destroyed nearly one third of the crops in the country.

“We have been given an outright deal to export to Cuba about 15,000 metric tons of red beans, which is translated to nearly US$12million (K1.9bn),” said Mussa, adding that there is a big export market in Cuba.

He further said apart from the beans export, there was also an agreement that Cuba would assist Malawi with expertise and knowledge to process fruits to improve shelf life after harvest.

Mussa therefore urged all beans farmers to come forward so that government can arrange logistics for the exportation of the beans especially on transportation.

The Minister also said that Cuban government has also offered technical support on the Shire Zambezi water corridor, and the technicians are expected in the country next year.

Principal Secretary in the trade ministry Nebert Nyirenda said Malawi has the capacity to export the beans at the same time have surplus.

“Beans are early maturing and we are not going to export the whole lot at once. We will be exporting in tranches and that will give us room to plant more,” he said.

According to Nyirenda, experts from Cuba are expected in the country to select a variety of their choice.

As a country, Malawi showcased several agricultural commodities which included groundnuts, tea, and coffee among others.

Statistics from the Ministry indicate that the country produces about 34,000 metric tonnes of beans annually.

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PUBLISHED BY ‘THE DAILY TIMES’ (Malawi)