The MLF Malawi microfinance institution has been benefiting from the SSNUP (Smallholder Safety Net Upscaling) program since Q1 2023, coordinated by ADA (Appui au Développement Autonome) and for which the Grameen Crédit Agricole Foundation has been selected as one of the impact investors in charge of its implementation. The program aims to increase the productivity and resilience of small-scale farmers, particularly in Asia and Africa, through better risk management and the promotion of sustainable, climate-smart agricultural practices.
The 2-year project aims to improve the financing of agricultural activities carried out by producers in rural areas in Malawi, through the development of agricultural loans and a credit rating system, the integration of mobile money transfer and savings services, and the optimization of operational procedures.
The technical assistance provided by the Foundation as part of the program will strengthen the MFI’s financial offering by training 17,000 women farmers (operating in the maize, Irish potato, soybean, rice, livestock, horticulture and peanut sectors) in finance.
peanuts) in digital finance to improve their digital literacy and encourage the use of banking services on their cell phones. Trained in the use of mobile money, these 17,000 women will have easier access to additional financial services tailored to their activity. They will also be more confident in carrying out transactions themselves.
Malawi’s economy is heavily dependent on the agricultural sector (29.5% of GDP), which employs over 80% of the population (World Bank). The population relies mainly on subsistence, rain-fed agriculture, which increases its vulnerability to climatic shocks and creates food insecurity. Mobile money services promote financial inclusion for women.
MLF Malawi, a Grameen Crédit Agricole Foundation partner since 2018, is a credit microfinance institution (MFI) set up in 2002 by MicroLoan Foundation UK, a charity that has dedicated its activities to microfinance in sub-Saharan Africa. By December 2022, the institution had over 40,000 active borrowers (100% women, 80% in rural areas) and managed a loan portfolio equivalent to around 4.6 million euros.
For more information on the SSNUP program, click here.