State-owned financial services provider National Economic Empowerment Fund (NEEF) has launched an interest-free loan called “Vuukani” targeting small-scale business operators in the country.
NEEF Chief Executive Officer Humphrey Mdyetseni has told ProjectM in an interview that the loan facility is also targeting youths who mostly lack business capital.
Through the facility, small-scale business operators including women and youths will be offered what is described as a “reasonable” amount of capital to launch or boost an existing business.
“We are very excited to announce this initiative and we believe women and youths out there will utilise this opportunity,” said Mdyetseni.
NEEF says the loan facility is also collateral-free, an arrangement that has been arrived at to give an opportunity to more people to access it.
“We are hoping to see more people flocking to our offices to get application forms to access this loan,” said Mdyetseni.
Through the initiative, hundreds of business operators are being targeted, according to Mdyetseni.
Meanwhile, Small-Scale Business Operators Association of Malawi through its executive director Tennyson Mulimbula has commended NEEF for coming up with the initiative, saying it will bail out a lot of people from poverty.
“We like the approach taken by NEEF because now a lot of people are going to have access to the much-needed funds for smooth business operation,” he said.
Currently, NEEF is also earmarked to disburse over K350 billion in loans targeting those who want to venture into farming.
