The World Bank has approved $86 million credit for the Malawi government to assist micro, small, and medium enterprises (MSMEs) in the country recover from the damaging effect of the Covid-19 pandemic.

Development Diaries understands that the pandemic has severely hit businesses worldwide, with many MSMEs in the southern African country struggling to find their feet.

‘This project is an important element of the World Bank Group’s response to Covid-19 in Malawi, from relief, through restructuring, towards ensuring a resilient recovery’, World Bank Country Manager for Malawi, Hugh Riddell, said.

‘This project contributes to relief efforts, with a clear focus on helping communities and businesses persist and find new opportunities.

‘It provides flexible support in line with the government’s contingency plan, along with other key development partners, by contributing to select elements of business growth in the private sector and enhancing financial inclusion and job creation’.

It was also learnt that the project would make financial resources available through a credit line to ensure MSMEs continuously supply essential goods and services to the economy and to mitigate the risk of failure/bankruptcy.

In addition, the project would facilitate opportunities for MSMEs that have the potential for high growth to thrive and grow over the medium-to-long term by providing training, particularly for youth-and-women-owned businesses.

Source: Modern Diplomacy

Photo source: World Bank Malawi