Give folks loans, please - Banda

27 April 2010, The Maravi Post
URL: http://www.maravipost.com/index.php?option=com_content&view=article&id=3077:give-folks-loans-please-banda&catid=52:district&Itemid=122

Nkhotakota:  Financial institutions in Malawi should be partners with government and provide loans to business to help grow the economy, says Speaker of Parliament Henry Chimunthu Banda.  People in rural areas--home to over 80 percent of the population--don't have access to loans but this is where some of the most creative people, who make do with very little, live. Government alone can't meet their all their development needs, Chimunthu Banda says.

He spoke when he officially opened Nkhotakota Business Development Centre at Khunga in Dwangwa.

"For small businesses to grow they need credit. This initiative provides collateral and access to rural people to access credit. Banks have been a problem and please allow people to grow their businesses," he said.

Chimunthu Banda who donated a motor cycle to the centre and made an order of 10 goats and five bags of rice said the initiatives were meant to link ordinary farmers with markets and also develop their capacities.

"This means that people can now come and get their produce evaluated and avoid people cheating them on prices. This means companies such as Illovo can come to place their orders for overcoats for skilled artisans and empower these people," he said.

Executive Director of the Malawi Entrepreneurship Development Institute (MEDI) Charles Kazembe said the K50 million pilot phase being implemented in Mzimba North, Thyolo East and Nkhotakota North was aimed an empowering rural Malawians.

Kazembe said K5.3 million had been spent to develop the centre in Nkhotakota which will provide training and marketing facilities to rural Malawians.

Senior Chief Kanyenda pledged to support the initiative with available local resources.

During the launch, Chimunthu Banda asked organization and Government departments to start buying local produce through the centre to support rural livelihoods.--maravipost