Malawi: Msungama Storms Neef Offices Over Loans for the Youth

Minister of Youth and Sports Ulemu Msungama on Wednesday stormed National Economic Empowerment Fund (Neef) offices to find out why there were delays in disbursement of loans to the youth.

Neef acting chief executive officer Humphrey Mdyetseni said so far, the government-owned microfinance firm has disbursed K2.9 billion of the K5 billion government allocated to it since it resumed loan disbursements in February.

He has expressed confidence that the organisation will distribute the entire K5 billion by mid May, adding that it expects to distribute a maximum of K15 billion by the end of the current financial year.

Msungama said the youth out there would like to know how many people have benefitted from Neef loans so far.

Neef is the rebranded successor of Malawi Enterprise Development Fund (Medf) Limited.

Medf Limited, Neef’s predecessor, was registered under the company’s Act as a Company in 2014. It succeeded Malawi Rural Enterprise Development Fund [Mardef] established by the government with the approval of Parliament to disburse revolving loans to groups.

However, like its predecessor revolving funds, the fund faced a high rate of default as most beneficiaries were politically-linked; hence, felt the money was free. In some cases, because of the politicisation, unqualifying beneficiaries received loans, but never undertook viable businesses.

By Nyasa Times.