By Patience Longwe
The Malawi Enterprise Development Fund (MEDF) has resumed loan disbursements with a target of K100 billion for the 2026/2027 financial year after streamlining its portfolio from 26 loan products to nine, aimed at boosting youth, women, and enterprise development.
According to a press statement issued by MEDF on June 1, 2026, the fund has reduced its portfolio from 26 products to nine comprehensive loan facilities to better serve borrowers across various sectors.
“The nine products are Government of Malawi Employees Loans, Youth Empowerment Loans, Women Empowerment Loans, Men Empowerment Loans, Agricultural Production Loans, Cooperative and Industrialisation Loans, General Trading Loans, Asset Financing Loans, and Micro-Insurance Loans,” reads the statement.
MEDF said it is also promoting Order Finance Loans under the Asset Financing category, targeting individuals, partnerships, and companies that require short-term capital to execute business contracts and supply orders.
The fund further said it is placing greater emphasis on group lending to strengthen collateral support and reduce default risks. However, individual applications will still be accepted provided applicants have adequate collateral.
For the 2026/2027 financial year, MEDF has set a nationwide disbursement target of K100 billion across all loan categories.
Under the Constituency Development Fund (CDF) loan window, each constituency will receive K200 million, to be shared equally between youth aged 18 to 35 and women aged 35 to 75.
Groups comprising five to ten members will be eligible to access loans ranging from K2.5 million to K5 million at an interest rate of three percent. The loans will be secured through social collateral, where group members guarantee one another.
All eligible groups will undergo financial literacy training before loan disbursement. In addition, only one member per household will be allowed to access the CDF loan at a time to avoid excessive debt burdens.
“The programme will be implemented in collaboration with the Ministries of Finance, Local Government, Youth, Sports and Culture, Gender, and Agriculture to enhance accountability and due diligence,” reads the statement.
MEDF said the collaborative approach is expected to increase access to affordable financing for youth, women, and persons with disabilities while promoting entrepreneurship, self-reliance, and job creation.
The fund reaffirmed its commitment to supporting Micro, Small and Medium Enterprises (MSMEs) as a catalyst for economic growth, job creation, and poverty reduction.
