The National Economic Empowerment Fund Limited (NEEF) faced the press on Monday, July 18 2022 in Lilongwe where the Fund explained the progress it has made in disbursements and collections of the loans.
Face the Press is a Ministry of Information Initiative in which different government departments face the media as a way of showing accountability to the nation.
Speaking to the media, NEEF’s Chief Executive Officer, Humphrey Mdyetseni emphasized that the loans that the Fund disburses are not gifts but need to be repaid.
“The loans have the potential to economically empower Malawians and achieve notable transformation in the communities’ livelihoods.
“In a period of 16 Months NEEF has managed to disburse MK37 Billion to 110,000 Malawians compared to MEDF which disbursed MK12 Billion to 130,000 Malawians in a period of 6 years,” said Mdyetseni.
On collections, Mdyetseni said NEEF has, in the 16 months, managed to collect 72% of the loans disbursed unlike the 21% collection rate that MEDF registered in its 6 years of operation.
In order to ensure that the Fund serves Malawians better, Mdyetseni said NEEF has opened 89 offices countrywide compared to the 19 that MEDF was using and led to the poor performance of the Fund.
“We have also recruited 150 new loan officers and that brings our total staff to over 400 personnel. Every district now has more than 15 Loan officers with a target of 2 or 3 loan officers per constituency, said Mdyetseni.
One of NEEF’s distinguishing marks from MEDF is the use of development structures which include the District Development Committee (DDCs), Area Development Committee (ADCs), Village Development Committees (VDCs).
Before then there was just direct contact between loan officers and the beneficiaries, a situation that exposed the loans to political machinations.
Since starting disbursements in February 2021, the National Economic Empowerment Fund Limited (NEEF) has managed to disburse MK37 Billion to 110,000 Malawians in a period of 16 months.