By Chimwemwe Misomali:
Low access to finance has been singled out among main constraints to growth of small and medium-scale entities in the agriculture supply chain.
This is according to the Grain Traders Association of Malawi, an umbrella body for local farm produce traders.
In an interview yesterday, the association’s chairperson Grace Mijiga said players in the agriculture supply chain, especially women, continue to struggle to access finance.
“For the past five years plus, various financial institutions, especially banks, have offered training to women in agribusiness but after the programmes, most of the women are unable to access funds from these institutions.
“It seems to me that there is always a third party involved and most banks are just interested in tapping into these funds from donors and then come up with programmes to train these people with no further help given,” she lamented.
She then urged industry players to enhance efforts towards supporting businesses with capital in addition to the technical support they offer.
Over the years, women in agribusiness have been trained by various institutions in how to grow their businesses and make them more marketable.
Lack of access to finance, access to land, high business operating costs and low production capacities are some of the major challenges SMEs continue facing in the country.
It is estimated that MSMEs contribute about 40 percent to gross domestic product and 24 percent of employment, and about 21 percent of the country’s adult population derives their livelihood from the sector.
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