EIB, Centenary Bank sign K15bn SME financing deal

The European Investment Bank (EIB) has teamed up with Centenary Bank Malawi to facilitate €7.5 million (K15.1 billion) financing arrangement for small-scale agricultural businesses and smallholder farmers.

Minister of Finance, Economic Planning and Decentralisation Joseph Mwanamvekha said during the launch in Lilongwe yesterday that the deal will boost financial inclusion and improve access to capital for small and medium enterprises (SMEs).

He said the financing will enable farmers to access better inputs, help small businesses expand and create jobs, ultimately improving livelihoods and supporting economic growth.

Mwanamvekha (C) with Pelekamoyo (L) and Head of EU Delegation Daniel Aristi Gaztelumendi during the launch. | George lumwira

“The agreement that has been signed today is quite important, not only to the bank, but also to the Malawi Government and Malawian people, in particular the small and medium enterprises,” said Mwanamvekha.

He urged Centenary Bank to minimise bureaucracy when disbursing the loans, noting that many targeted beneficiaries lacked collateral and had limited borrowing capacity.

Centenary Bank board chairperson Francis Pelekamoyo described the partnership as a major milestone for the bank’s efforts to empower small-scale agricultural enterprises.

“We can see our mission of transforming lives through inclusive and sustainable financial solutions becoming a reality,” he said.

Pelekamoyo said the initiative could reach between 1.5 million and two million people, with the bank targeting communities at the “lower part of the pyramid” that remain underserved by financial services.

In his remarks, EIB Vice-President Marko Primorac said the EIB Global loan comes with technical assistance to strengthen Centenary Bank’s capacity to expand agricultural lending, reach underserved clients and promote climate-resilient farming practices.

He said the partnership would bring long-term financing to rural communities where it is most needed.

The operation is also backed by a European Union (EU)-financed guarantee and contributes to the EU’s Global Gateway investment commitments, reflecting EIB Global’s focus on high-impact partnerships between the EU and Malawi.

The financing will target agri-food businesses employing fewer than 10 people and smallholder farmers. Half of the funding is earmarked for sustainable agriculture, while the other half will support women- and youth-led businesses.

Since 1977, EIB Global has invested more than €630 million (about K1.26 trillion) in 47 projects in Malawi, supporting small businesses as well as public and private investment in sectors including energy, water and transport.

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