By Jones Gadama
Concerned Citizens of Malawi, led by Edward Kambanje, has formally addressed the Reserve Bank of Malawi seeking clarity on the Financial Inclusion and Entrepreneurship Scaling (FINES) Project.
The project, funded by the International Development Association of the World Bank, aims to improve access to finance and build the capacity of entrepreneurs nationwide.
However, confusion and dissatisfaction among trainees have prompted the concerned citizens to demand transparency and a clear explanation of the project’s objectives and grant disbursement policies.
According to the letter sent to the Reserve Bank, many entrepreneurs who participated in the FINES training program were led to believe that financial support would be available in the form of grants upon completing the training.
This expectation stands in contrast to the project’s true design, which focuses on improving access to finance through loans and equipping entrepreneurs with skills for crafting bankable business proposals.
The Reserve Bank of Malawi has responded, clarifying that FINES is a government initiative financed by an $86 million loan from the World Bank, targeting increased access to financial services and entrepreneurship development for micro, small, and medium enterprises (MSMEs).
The project comprises two main components: providing concessional loans at 3% per annum to participating banks, microfinance institutions, and SACCOs, and capacity building through a rigorous three-stage training program.
However, the Concerned Citizens of Malawi is not satisfied with the response, accusing the Reserve Bank of stalling and lacking transparency.
“The Reserve Bank invited us to a physical meeting in Lilongwe, but they’ve been scheduling and rescheduling dates, preferring a visual meeting, which we’re not comfortable with,” Kambanje said. “They’ve even suggested meeting in Blantyre, but we’re not convinced they’re serious about resolving this issue.”
Kambanje added that the trainees, who have been trained for three years, are under pressure, having been promised loan grants.
“The situation at hand can’t be discussed virtually, and the Reserve Bank’s lack of clarity on dates is unacceptable,” he said.
The controversy surrounding the FINES Project continues to escalate, with social commentator Mathews Namukhoyo weighing in.
“The Reserve Bank’s stance is a clear indication that they’re not interested in having a genuine dialogue with the Concerned Citizens of Malawi,” he said, adding that,”They know they’re in the wrong, and this is just a tactic to stall the process. It’s unacceptable and shameful.”
Efforts to get a response from the FINES Project team, led by Ralph Tseka, were unsuccessful, with his phone going unanswered after several attempts.
