NEEF to replace sold MSB
A file photo showing MBS Bank before it was sold
President Lazarus Chakwera has revealed plans to turn the National Economic Empowerment Fund (NEEF) into a government-owned bank next year.
Chakwera revealed this during the commemoration of Kamuzu Day in Mzuzu on Wednesday.
“Let us believe in what we will start next year in turning NEEF to be a bank will be giving soft loans to the country’s young people at lower interest rates so that they (youth) contribute to the growth of the national economy. The African Development Bank assured that they will help us in realising this dream,” revealed the Malawi leader.
Chakwera went on to criticize the sale of government-owned Malawi Savings Bank (MSB) in July 2015.
“He [Kamuzu] put up structures of banks like the MSB, strictly for Malawians. Unfortunately, some people came in and destroyed,” added Chakwera.
The MSB was sold to FDH Financial Holdings Limited after the government argued that it failed to meet regulatory requirements to capitalise the entity as recommended by the Reserve Bank of Malawi.
NEEF is a registered state-owned microfinance institution under the Companies Act of 2013, which was introduced so as to economically empower ordinary and underserved Malawians, particularly women, youth, and persons with disabilities, through the provision of quality, affordable, and sustainable microfinance services.
The entity has been changing names from the Malawi Rural Development Fund –Mardef, then Malawi Enterprise Development Fund –MEDF, before being renamed National Economic Empowerment Fund -NEEF in September 2020.
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