The Government has launched the Malawi Enterprise Development Fund (MEDF), formerly the National Economic Empowerment Fund (NEEF), with a renewed drive to recover unpaid loans and expand access to financing.
The launch in Lilongwe also saw the unveiling of MEDF’s 2026–2030 strategic plan.
Speaking during the launch, Minister of Finance, Joseph Mwanamvekha, described the initiative as a turning point for economic empowerment.
“The launch of MEDF is a historic milestone. It marks the beginning of a renewed effort to empower Malawians, particularly the youth and the less privileged,” Mwanamvekha said, adding that “loan access will not be based on region or political affiliation.”
Government has directed the institution to recover about K240 billion in loans, stressing the funds are “not a gift but public resources that must revolve to benefit others.”
MEDF Board Chairperson, James Naphambo, said the fund will rely on group lending to strengthen repayment.
“People encourage each other to repay loans under group lending, and those who comply can access bigger facilities to grow their businesses,” Naphambo said.
However, MEDF Chief Executive Officer, Kaisi Sadala, said the institution is facing operational challenges due to financial constraints.
“We found no cash, and collections are currently being used to service existing debts,” Sadala said.
Authorities say strict measures will be enforced to ensure all defaulters repay the loans.
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