Malawi: Bank launches SME banking
Access to credit by SMEs will accelerate economic growth of MalawiRecognizing the roles played by small and medium enterprises (SMEs) toward Malawi's economic growth, Opportunity Bank Malawi (OIBM) has launched SME banking to assist SMEs access credit with minimum surety. During the launch of the initiative on December 8, the SME Consultant to OIBM, Ben Muchina having emphasized the importance of SMEs to a nation's economy, said the initiative will enable SMEs have easy access to credit. "SMEs do not
have the right security to access loans from financial service providers and that is why OIBM is coming in with this product to assist SMEs access loans with minimum surety. For instance, if the SME's want to access loans in order to buy equipment that would uplift their businesses, OIBM will be using the same equipment that would be bought as surety" he said. With over one million SMEs existing in Malawi, only 195,000 are registered with Malawi's Registrar General Department, however some are
non-operational. Despite a number of
challenges faced by SMEs in achieving meaningful strides, SMEs are driving Malawi's economy accounting for about half of Malawi's GDP.