The National Economic Empowerment Fund Limited (NEEF) has signed a Memorandum of Understanding (MOU) with the Technical, Entrepreneurial, and Vocational Education and Training Authority Teveta Malawi that aims at enabling Teveta Malawi graduates to access affordable loans from NEEF.
Speaking during the MOU signing ceremony in Lilongwe on Tuesday, TEVETA Board chair Don Whayo lamented that most of the TEVET beneficiaries who wish to enter into self-employment face challenges in accessing financing due to lack of personal securities and guarantees to support their loan applications; and lack of knowledge in financial literacy among most of the TEVET beneficiaries.
“We train more than 7400 youths annually in different trades with prospects of wage and self-employment but the Malawi labour market currently cannot absorb all of these into formal employment,
“The purpose of what we have done today is to ensure that all young graduates coming out of the TEVET Colleges should be able to establish their businesses”, said Whayo.
According to the details of the MOU, TEVETA will among other things, facilitate the identification of the targeted TEVET beneficiaries; pre-qualify and recommend TEVET beneficiaries to NEEF; guarantee 70% of the loan amount issued to TEVET beneficiaries; and issue letters of guarantee to NEEF for individual borrowers.
NEEF Board Member Aram Beza, who was present at the MOU signing ceremony expressed commitment to ensure that the agreement is executed to the benefit of the youths in the country.
“This MOU is a milestone towards meeting NEEF’s strategic objectives of contributing to the country’s economic development through provision of diversified loan products to Micro, Small and Medium Enterprises; contribute to increased employment (1 million jobs) by among others supporting enterprises that have the potential to create jobs; and entrench the enterprising spirit in youth, women and other groups that have the potential to contribute to socio-economic growth,” said Beza.
TEVETA Acting Director Modesto Gomani called on all graduates from the TEVET system to go to their nearest TEVETA offices for modalities on how they can access the loans from NEEF.
And NEEF Acting CEO Humphrey Mdyetseni challenged other organisations to emulate this example by guaranteeing loans to other underserved Malawians like women and those with disabilities so that they can access the loans easily and contribute to the socio-economic development of the country.
NEEF, TEVETA Sign Loan MOU