The Malawi Enterprise Development Fund (MEDF) Limited has announced that it will resume loan disbursements in May after implementing major reforms.
Board Chairperson, James Naphambo, told the press in Lilongwe that the Fund had suspended operations to address serious challenges, including poor lending systems, weak internal controls, and misuse of funds.
Naphambo said changes have now been made to improve how the Fund operates.
“These include stricter financial controls, better loan assessment, and improved monitoring and recovery systems,” he said.
MEDF Board Chairperson added that the Fund has introduced new systems to improve efficiency and transparency.
However, He stressed that the review process is still ongoing, with a forensic audit currently underway to guide further improvements.
Naphambo also pointed out that loan disbursement will be done in phases, starting with loans under the Constituency Development Fund, alongside selected business loans.
Naphambo said women and youth will benefit from group-based loans to promote accountability, and all beneficiaries will undergo basic business training.
“For business loans, only applicants with viable businesses will qualify, and some will be required to provide collateral,” he added.
Naphambo emphasized that all loans must be repaid, stressing that they are not grants, and that there will be no loan waivers.
Meanwhile, MEDF has urged Malawians to borrow responsibly as the Fund works to support economic growth.
