Just a few years ago. Mphatso Nkolimbo believed life had nothing more to offer.
“Life was not only hard but also without a purpose,” he recalled.
At 18, Nkolimbo was already involved in destructive activities in Blantyre’s densely populated township of Mbayani. His behaviour led to repeated conflicts with his family, who eventually discarded him.
Now, at 25, Nkolimbo is a symbol of transformation. He owns a furniture business in the very township where he once wandered without direction. His turnaround was boosted by a loan he received from the National Economic Empowerment Fund (NEEF) in 2021, which he accessed along with five friends—each receiving close to K5 million.
Before securing the loan, Nkolimbo had already started his furniture workshop but struggled to meet demand due to limited capital.
He now earns nearly K2 million a month. “My business supports my family and friends. I take care of my single mother and my aunties in the village. Life is good at the moment,” he shared.
Nkolimbo now employs nine people at his shop. Among them is 21-year-old Henry Saiwala, an orphan since the age of 16, whose life has taken a positive turn since joining Nkolimbo’s team. What was once a journey filled with hardship is now one filled with hope and opportunity.
Nkolimbo’s story is just one of many across Malawi where the youth are rewriting their story through NEEF loans. In Blantyre’s Manje, a township known for aged and wrecked modified vehicles, some inspiring stories have emerged.
Gift Bernard, 26, was raised with no guardians, a situation that forced him to shoulder the responsibility of adulthood far too early. But a successful NEEF loan application changed his course.
“That time, I was already running a small business with a little capital, and I struggled to sustain it. For the reason that it was the only business that gave me food, I never gave up but continued doing it,” explained Bernard.
With the loan, he bought two motorcycles and he now makes close to K20,000 a day, and he is also running food shops in Limbe’s main market, which make close to K500,000 daily.
An avenue for job creation
NEEF Chief Executive Officer Humphrey Mdyetseni says the fund is deliberately structured to support high-impact ventures—particularly those in agriculture, manufacturing, services, and technology—that create jobs and stimulate economic growth.
“For individual loans, we prioritise men and women who have acquired technical skills from institutions like TEVETA, colleges, and government programmes.” said Mdyetseni. “The goal is to create employment for skilled but idle graduates and to encourage entrepreneurial partnerships.”
For group loans, NEEF targets groups of size 3 to 10 men who have acquired skills from different institutions and programmes such as TEVETA, Colleges & technical schools, and government internships, he said.
Among the fund’s programmes is Vuukani, a facility targeting youths who mostly lack business capital. Through the facility, small-scale business operators, including women and youths, are offered what is described as a “reasonable” amount of capital to launch or boost an existing business.
According to Mdyetseni, NEEF plans to reach out to at least 30,000 to 40,000 beneficiaries in the current 2025/26 financial year.
He said so far, K98 billion has been disbursed since 2021, and has set aside K60 billion for loans in the 2025/26 fiscal year.
Repayment concerns
Despite the success stories of Nkolimbo and Bernard, repayment struggles remain an issue. In this context, Nkolimbo believes that beneficiaries of NEEF loans should be those already in various business ventures.
“If I were to get K20 million, for example, I would know exactly how to invest it and boost my business, unlike someone who has no business. I have some friends who are struggling to pay back the loan. I believe this is the case because they had never run a small business venture,” Nkolimbo said.
Economist Gift Mandiwa agrees. “That is why several money lending institutions ask for tangible collateral from loan seekers, such that when they fail to pay, the collateral will be used as a shield.”
Mandiwa, however, said that providing business loans to youth in the informal sector can have a transformative impact on their lives, communities and the country at large. According to the economist, many young people in the informal sector lack access to traditional financing options, hindering their ability to grow their businesses.
“Youth in the informal sector often possess an entrepreneurial spirit and innovative ideas, but they face significant barriers to accessing capital. Business loans can help bridge this gap, enabling them to expand their businesses, diversify their products or services, and reach new markets,” he said.
He urged institutions like NEEF to tailor their loan packages to the realities of informal sector youth — offering flexible repayment terms, business training, mentorship, and tech-based access to services.
Responding to this, Mdyetseni said that providing loans to individuals who have never been in business is risky, but it is also important not to sideline them. “It is our responsibility to empower even the marginalised,” he said.
The bigger picture
During the official opening of the 35th Malawi International Trade Fair at Chichiri Trade Fair Grounds in Blantyre, President Dr. Lazarus Chakwera pointed out that his government has put in place strategies aimed at creating a conducive environment for the private sector to scale up its investment and increase production to promote economic transformation of the country.
The President further said his administration has, for the past four years, supported women and youth entrepreneurs to establish 100,000 businesses in different sectors of the economy.
He further disclosed that another chunk of K1 trillion from the African Development Bank through NEEF will also be provided to them in the next five years.
Back in Mbayani, Nkolimbo is already dreaming bigger. He plans to expand his furniture shop.
