The Loan Facility will fund FINCA Malawi digital transformation and on-lending to FINCA clients
March 16, 2018, Blantyre, Malawi.
FINCA Malawi and KfW, the German government-owned development bank, today signed a long-term subordinated loan facility valued at USD 3.4 million. FINCA intends to use the proceeds from this 8-year loan to digitize its processes and broaden its financial products and services, specifically by boosting financing of micro, – small and medium-sized enterprises (MSMEs).
FINCA Malawi is a licensed deposit taking institution that currently serves more than 50,000 customers across its 23 branches and expanding agent network. It is investing in digital technology to support delivery of its services and products and recently introduced a mobile banking platform to improve access across the country, particularly rural areas. These initiatives create convenience and speed which ultimately have a positive impact for our customers.
According to Christopher Kizza, CEO FINCA Malawi: “The strategic cooperation and synergies between FINCA and KfW will support FINCA Malawi’s efforts to digitalize its business, support our capital structure and grow our portfolio. FINCA’s customers will benefit with improved access to an array of products and services that will translate to increased productivity, competitiveness and employment generation.”
According to KfW Representatives, Katharina Collin & Patrick Schreiber: “We believe strongly in the virtue of Microfinance and its contribution to alleviate poverty through lasting solutions that help people build assets , create jobs and raise their standard of living. “
KfW and FINCA Impact Finance are both dedicated to achieving a positive social impact while using commercial principles that require sustainable financial results. This facility marks a new milestone in the partnership between the two institutions, KfW being a key minority shareholder of the FINCA Impact Finance network.