* In order to maximize recoverability, NEEF can recover farmers’ loans directly from their bank account instead of being chasing to repay
* Loan conditions should be flexible so that many people, including the working class, can access them so long as they have the ability to repay
By Monica Tambala
Minister of Finance & Economic Affairs, Simplex Chithyola Banda, has encouraged National Economic Empowerment Fund (NEEF) administrators to be more innovative in recovering loans from farmers in order to maximize loan recoverability.
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Chithyola Banda, who is Member of Parliament (MP) for Kasungu South, offered the advice on Saturday as he welcomed Minister of Agriculture, Sam Kawale to his constituency where NEEF and other government officials went to inspect progress of the Fund’s farm input loan beneficiaries in the area of Traditional Authority (T/A) Santhe.
“Some loans can be attached to someone’s bank account,” he said. “For example, if I am into tobacco farming and I have a bank account, the money I make would go directly to my account.
“In order to maximize recoverability, NEEF can subtract the loan directly. That means there will not be need to be chasing me around to repay the loan.
“I also request NEEF to work around the loan conditions so that many people, including the working class, can access these loans so long as they have the ability to repay.”
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Chithyola further encouraged all youths to participate in agricultural activities, thereby becoming productive citizens capable of boosting Malawi’s economy through agriculture.
NEEF Chief Executive Officer, Humphrey Mdyetseni said this year’s farm input loan programme began as a pilot project, saying the Fund was given about K17 billion to disburse to 15,000 farmers that have the potential to absorb K1 million which would support at least one acre of land.
He said the NEEF initiative to provide loans is on account of implementing the three tier approach which government has taken to revive the agriculture sector.
“From our perspective, we see that the three tier is a very brilliant approach which is integrating anyone who has the potential to produce in the agricultural sector,” Mdyetseni said.
“If you are a micro producer, you rely on AIP, if you are a small to medium producer, NEEF is there for you. If you are a large producer then Agricultural Commercialisation (AGCOM) facility, Malawi Agriculture & Industrial Investment Corporation (MAIIC) and other initiatives are there for you.”
Mdyetseni added that the farm input loan program has the potential of contributing 40,000-50,000 metric tonnes of maize which can contribute to the national grain production.
One of NEEF’s beneficiaries, Mirriam Jekapu, said apart from the youths participating in agriculture production, women should be at the forefront and stop looking down on themselves as they can achieve anything they set their mind on.
“I am encouraging fellow women — it is not right to always depend on our husband’s income, we need to have our own source of income as women and support our partners. Let us hold hands and work together to ensure that our homes are food secure,” she said.
Meanwhile, Mchinji farmers are breaking free from chronic hunger, thanks to the NEEF farm input facility.
This follows a farm input verification tour on Friday, led by three Ministers of Agriculture, Kawale; Finance, Chithyola Banda and Information Moses Kunkuyu at Traditional Authority (T/A) Nyoka in the district.
In an interview with Malawi News Agency (MANA), one of the NEEF loan facility beneficiaries, Henderson Mwavuli expressed gratitude to the government for the initiative, saying: “For years, I have been dormant in agriculture due to lack of capital. Now, with the NEEF loan, I have cultivated 15 hectares of maize and five of tobacco — ensuring I am not facing chronic hunger this year.”
On his part, Minister of Agriculture, Kawale emphasised government’s commitment to transitioning from the affordable input programme (AIP) to NEEF, saying: “We want farmers to graduate from AIP to NEEF, then to Agriculture Commercialisation (AGCOM) funds, ultimately becoming part of mega farms.
He reassured farmers on market concerns, highlighting government partnerships with companies to purchase their produce.
Chithyola Banda moved to amplify the positive impact, pledging an increase in NEEF funding to benefit more Malawians: “I appeal to the Members of Parliament to support this initiative, ensuring the fund reaches many Malawians, leaving no one behind in the system.” Chithyola.
MP for Mchinji North East, Esther Majaza lauded the initiative, foreseeing a return to abundance for Mchinji: “Chronic hunger will be history in Mchinji if this continues,” she said.
Majaza also expressed her commitment to supporting the fund’s increment in parliament.—Reporting from Mchinji by Amos Phiri Chigwa, MANA
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