Seyani: We compliment government’s effort

Appreciating the challenges facing the agri–business sector, especially small-scale farmers’ lack of access to funding for investment in agricultural equipment and other farm implements, the Farm Infrastructure and Implements Facility presents itself as a solution.

The farm infrastructure and implements facility is a new product from National Bank of Malawi (NBM) plc whose other objective, according to the bank’s Account Relationship Manager, Mavuto Seyani, is to lure salaried employees who have sizeable chunks of land in the country but mostly remains idle and undeveloped, to venture into commercial farming.

Seyani explains that NBM plc noted gaps in the financial services market for finance specifically targeting small-holder farmers, especially when it comes to procurement of agricultural equipment and machinery.

As such, the Farm Infrastructure and Implements Loan was introduced by the Bank to contribute to national efforts towards commercialisation and mechanisation of agriculture in the country.

It is also aimed at complimenting the Government’s effort in creation of jobs for the youth and vulnerable women.

Seyani explains: “These are term loans which spread the cost of investment over a period, to avoid unnecessary strain on cashflow. The offering is flexible in that customers are given a grace period (moratorium) and repayments are aligned to projected cashflows such as annual, bi-annual, quarterly and monthly instalments after the expiry of the grace period.”

He added that the Bank also offers seasonal loans to support growing and marketing of crops under contract farming including tobacco, groundnuts, and seed maize. These loans run up to 12 months and they are cleared with contract proceeds.

“We also offer term loans to support capital expenditure. These are given to customers with undoubted sources of cashflows and where repayment sources are clearly identified. Both facilities are offered either in dollars or kwacha,” said Seyani.

The Bank promises to continue to innovate and introduce more value adding financial solutions to its farmers and customers in general because it believes that agriculture is key to the economic development of this country.

The Farm Infrastructure and Implements Loan is available to farmers both in the commercial and small-holder sub-sectors and salaried employees with viable business plans.

“All those interested should visit any of our nearest service centres or directly visit Corporate Banking Division housed in our head office complex in Blantyre for more information,” Seyani says.

It is a fact that agriculture, the sector in which Malawi competes most successfully in international markets, also anchors Malawi’s economy — directly accounting for about one third of gross domestic product (GDP).

The sector accounts for about 93 percent of total export earnings and contributes about 27 percent of the country GDP.

Agriculture also significantly contributes to employment, economic growth, poverty reduction, food security, and nutrition — and turning the sector into an engine of growth is a major development goal for Malawi.