• September 26, 2022 7:59 pm

NEEF a powerful tool stimulating small and medium enterprise’s growth

Aug 28, 2022

On 29 January , 2005, a child was born and was christened Malawi Rural Development Fund (MARDEF). The organization was created to be a revolving fund through
Presidential decree.

In 2014, Government established a full company under the Companies Act as a company limited by guarantee and as a result of this move, MEDF was formed and inherited the assets and liabilities of MARDEF, the Youth Enterprise Development Fund (YEDF) and the Farm Input Loan programme (FILP) that were implemented from 2012 to 2014.

Years down the line, MEDF failed to accomplish its mission and objectives because overzealous Democratic Progressive Party (DPP) shamelessly used to share the money only to politicians and other party zealots.

That is why when President Dr Lazarus Chakwera took over power, he gave new direction on how the organization should be run to benefit all Malawians. Chakwera insisted that National Economic Empowerment Fund Limited (NEEF) should run without political interference.

The company remains government owned microfinance institution with mission to economically empower ordinary and underserved Malawians (particularly women, youth and persons with disability) through the provision of quality, affordable and sustainable
microfinance services for improved
livelihoods.

NEEF being  a radical rebrand of the Malawi
Enterprise Development Fund Limited
operates on a license that was issued in January 2015 by the Reserve Bank of Malawi as a non deposit taking microfinance institution.

Despite political challenges attached in the past , little was known that the same company which some were abusing through the use of politics has finally become an economic vehicle which is now changing lives of many people.

Magadalena Alinafe Chuma is Zonse ndi moyo Club Chairperson. In her narration Magadalena Alinafe Chuma, who is also Director of Kelvin Investment says NEEF has completely changed her life.

Mrs Chuma on duty

Chuma says business trends have changed because NEEF is doing its business professionally.

“We commend President Dr Lazarus Chakwera because at first we heard that NEEF is for those supporting the ruling party but we are not supporting any political party but we have benefitted from the NEEF loan.This is so good and we have bright future as a club. This is totally different from what was happening in the past where only party zealots were benefitting from the fund,” said Chuma.

Other members benefitting from NEEF

Chuma added that the group has benefitted alot from K4,250, 000 loan it took from the microfinance institution.

She said instead of repaying the loan in 12 months as agreed, the repayment was done in 9 months.

“Currently we want to take K15 million  and share amongst the the group which comprises of 10,” she explained.

Asked what strategies were applied for the group to repay the loan in 9 months than the required 12 months, Chuma said it was agreed by the group that everyone should be work hard to repay the loan and advised every member to desist from using the loan on personal luxuries.

The success stories among the group members includes changed lifestyle as the majority have trippled their capital base.

Some members are trading in spare parts and others are into kabaza business.

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