The bank discloses that it has arrived at the decision backed by two surveys, one by National Statistical Office (NSO) and Finscope which both indicate that the country has a slightly higher population percentage of women as compared to other demographics.
"With an estimated female population of 51.5% (NSO, 2020), Malawi has over 558,090 women owned micro, small and medium enterprises (MSMEs) (Finscope Survey, 2019) and mostly facing difficulties to access formal credit due to collateral demands and working capital challenges
to enable business expansion. This presents a huge unserved market. International and local development instruments highlight the strategic importance of women in any society and their critical role in fostering economic growth and sustainable national development.
"Informed by the aspirations of the United Nations Sustainable Development Goals, the Africa's Agenda 2063 and Malawi's Vision 2063, FDH Bank Plc believes that women owned MSMEs in Malawi should be empowered and promoted to nurture
and grow their businesses and in turn they will significantly contribute towards the creation of a prosperous and sustainable society," reads the statement in part.
The bank says it has allocated K500 million to the facility and loan applicants have an opportunity of accessing up to K5 million, repayable within two years. - MBC Online Services.