According to bank provided information, the facility provides funding to CERUDEB Malawi for on-lending to projects undertaken by micro- and small enterprises, with a particular focus on projects implemented by women and in the agricultural sector.

Malawi is the forth poorest country in the world with 70% of its population living on less than EUR 1.9 per day and is ranked 174 of 189 countries on the Human Development Index. Access to clean water, sanitation, and health care remain significant challenges for many Malawians, especially in rural areas.
Given that micro, small and medium enterprises (MSMEs) play an important role in Malawi`s economy contributing 47% to the country`s GDP and employing around 1.7m people (38% of working-age adults) and since Malawi is highly dependent on its agricultural sector which contributes 25% of the country`s GDP and employs 80% of the rural population, the proposed operation seeks to support this major segment of the economy with subloans targeting micro clients with a focus on female borrowers.

The up to EUR 15 million loan to Centenary Bank Limited of Malawi, an impact-driven institution, will expand access to finance for women smallholders and rural-based small enterprises, directly complementing EU-funded programmes by adding a much-needed credit component for their final beneficiaries.

The facility is exclusively targeting enterprises with less than 10 employees and embeds a strong gender sectoral focus: half of the funds will support women-owned/-led businesses, and 50% will finance enterprises engaged in sustainable agriculture.

By addressing a persistent market failure in the provision of finance to very small businesses - an essential yet vulnerable segment that provides more than 70% of Malawi's employment and is heavily concentrated in agriculture - the operation promotes greater financial inclusion and economic resilience. It is fully aligned with the objectives of the European Green Deal, the Global Gateway, and the European Investment Package, promoting a green, inclusive, and digital recovery.

With its emphasis on sustainable agrifood systems and gender equity, the credit line contributes to several Sustainable Development Goals.

In addition to long-tenor funding and an extended availability period, the operation provides Centenary Bank Limited of Malawi with technical assistance and capacity-building support to strengthen institutional capabilities and deepen outreach to underserved clients.

Final beneficiaries will be requested to comply with applicable national and EU legislation, as appropriate.

*Contact information not provided at the time of disclosure*

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