African Guarantee Fund Supports Green SMEs in Malawi

Lilongwe, Malawi-The African Guarantee Fund (AGF) has committed to providing financial support to green small and medium enterprises (SMEs) in Malawi to help them scale up their businesses, writes Moses Nyirenda.

Speaking at the 8th edition of the green finance conference in Lilongwe, AGF CEO Jules Ngankam noted that SMEs make significant contributions to Malawi's economy and that his organization is committed to supporting them.

AGF is working with local banks to provide flexible loans to SMEs, including those offering services related to managing climate disasters such as floods and droughts.

The organization has already provided $15 million in financing to Malawian SMEs and plans to mobilize more funding to support them further.

Minister of Energy Ibrahim Matola commended AGF for supporting green SMEs in the country, highlighting the private sector's crucial role in clean energy development.

Lyness Tamandani Nkungulan, CEO of the Bankers Association of Malawi, also praised AGF's gesture but called for the inclusion of all local banks in supporting SMEs with loans.

"SMEs create a lot of jobs in many countries, and for this reason, 95 percent of the economy in most African countries like Malawi is made up of SMEs," Ngankam said.

AGF's commitment to supporting green SMEs aligns with the global push towards sustainable and inclusive economic growth.