The Small and Medium Enterprise (SMEs) have complained that the borrowing conditions of the National Economic Empowerment Fund (NEEF) are not conducive for the growth of small businesses.
Among other things, the NEEF has not given a grace period of loan repayment and the loan products targeting the beneficiaries have a 2.5% monthly interest rate, 3.5% off processing fee and 1.5% insurance, which the SME’s cannot afford.
Speaking to YFM, National Association of Small and Medium Enterprises (Nasme) chairperson William Mwale said they plan to engage government on the matter to consider revising the conditions.
“The conditions are very tough and almost every entrepreneur is complaining,” said Mwale.
Mwale added: “Actually we intend to meet with government officials to lobby for a possibility of revising the conditions so that they are affordable and ensure that people really benefit from the initiative.”
NEEF replaces the Malawi Enterprise Development Fund (MEDF) to enhance and promote economic empowerment among the citizenry.