Standard Bank commits to agri-financing

Standard Bank Plc has pledged to continue financing agriculture and empowering Small and Medium Enterprises (SMEs) in the sector to ensure sustenance of the sector as the main driver of the country’s economy.

The bank’s Chief Executive Philip Madinga made the commitment during the graduation of 46 SMEs and presentation of K10 million to the winner of the Phuka Pitch night in Lilongwe.

The graduation of Phuka incubates was done in collaboration with the Centre for Agriculture Transformation (CAT) and Synergy Labs and focused on agriculture to help sharpen the skills of SMEs in the sector.

According to Madinga his Bank is well positioned to support agriculture enterprises in line with its commitment to contribute to import substitution and building Malawi’s export capacity.

“Standard Bank believes in the potential of agriculture to continue anchoring the Malawi economy. In recent years, we have repositioned ourselves to take a keen interest in playing a key role in financing agriculture given its important role as the main driver of the economy. As a bank we feel proud to play such a great role and help people unlock their potential in the agriculture sector,” said Madinga.

Madinga said completion of the second cohort of the Phuka incubates underlines the bank’s commitment to empower the youth and help them take up ownership of efforts that contribute to Malawi’s economic growth efforts through agriculturally linked enterprises.

“Today marks the end of a journey that we started in September last year when we partnered with the Centre for Agricultural Transformation and Synergy Labs to enrol different entrepreneurs in Agriculture that we took through 6 weeks of intensive training on business management. As these 46 SMEs graduate today, we therefore can’t help but appreciate the fruits that Phuka has brought to our nation,” added Madinga.

Meanwhile, the Chief Executive Officer for the Centre for Agriculture Transformation CAT MacLeod Nkhoma highlights his organisation’s role during the incubation of the 46 graduates.

“Our role was to offer technical expertise such as ensuring that SMEs are trained in access to finances and improving governance and management of their businesses and creation of Markets for smallholder farmers with directly improves lives of these Farmers,” said Nkhoma.

On her part, Synergy Labs trustee Zione Ntaba gives an insight into how incubates are nurtured during their time at the lab and the significance of the process.

“Where we are going as a nation, we need to innovate ourselves and identify and rely on local things that is where we come in to nurture those that have bright ideas on businesses to enlighten them to embrace their potential so that they fulfil their dreams fully,’’ said Ntaba.

Agriculture anchors Malawi’s economy, directly accounting for about one-third of National Output and significantly contributes to employment economic growth, export earnings, poverty reduction, food security, and nutrition.

The first cohort of the Phuka incubation, which graduated in December of 2022, saw at least 59 SMEs equipped with numerous business growth and sustainability skills.