NBS BANK TEAMS UP WITH WORLD BANK

This follows reports that majority of small entrepreneurs are failing to expand their businesses due to extreme difficulties in accessing credit in most mainstream commercial banks.

A statement published yesterday says the loan programme would be drawn from a finance facility of up to US$200 million (about K29 billion) for the entire period.

“The bank’s (NBS Bank) collaboration with IFC will enable us to better serve micro, small and medium enterprises and reach a larger number of businesses across Malawi.” Says NBS Bank Chief Executive, John Biziwick.

According to the local bank the financial packages would help the bank beef up its innovative range of products for the benefits of the customers.

IFC says its advisory to NBS Bank will focus on expanding the banks, range of loan products raise its credit management practices and help it reach a larger number of small merchants.

“Small and medium enterprises drive the economies of many African countries and increasing support to them is one of LFCs’ strategizing priorities in the region.” Says Henry Tanoh, IFCs’ director for Africa.

Adding that the IFC support to NBS Bank would help entrepreneurs in Malawi reach their potential and provide new opportunities for smaller businesses.

IFC director for financial markets Jyrki Koskelo said the major draw back to most traders in the private sector in most African countries was limited access to finance.

“This programme with NBS Bank would help address some of the impediments enabling smaller businesses to enabling smaller businesses to grow further and contribute more fully to economic development,” Koskelo says.