By Suleman Chitera
Scottish First Minister, John Swinney has commended the development bank model being championed by NBM Development Bank Limited to support the growth of Small and Medium Enterprises (SMEs) for greater impact in their respective societies in the country.
Swinney made the remarks after meeting directors and officials from NBM Development Bank Ltd, and other SMEs in the country on Sunday in Blantyre, to appreciate their business ideas and progress.
NBM Development Bank Ltd is a subsidiary of National Bank of Malawi (NBM) plc.
It is a Development Finance Institution licensed by the Reserve Bank of Malawi (RBM), established as a long-term financing arm of NBM plc for small to medium sized enterprises (SMEs).
“I support the development bank model because it provides an opportunity for SMEs to grow by accessing financial support which is not the same as loans from commercial banks. Scotland is committed to supporting Malawi in areas like health, education, and climate change mitigation through collaborative projects, including support for grassroots initiatives and rural development.”
“Our government is committed to investing in projects that build capacity and attract further investment,” said Swinney.
NBM plc Chief Operations Officer (COO) Masauko Katsala, who is also one of the NBM Development Bank Ltd Directors, commended the Scottish First Minister for granting them an audience, while pleading for more support to continue with their mission of empowering the local SMEs.
“The Development Bank provides debt and equity capital to SMEs within key target sectors, and also assists these enterprises with business support services in order to assure viability of the enterprises. The Bank also assists these enterprises with business support services in order to assure viability of the enterprises.”
“The distinguishing feature of our financing model against commercial bank’s lending is that all applications have to demonstrate a development impact in terms of promoting environmental and social economic sustainability like financing of clean energy products and financing of projects that create jobs,’’ said Katsala.
Katsala said the Bank has already financed some women-led projects which are doing well, and that also demonstrates NBM plc’s commitment to empowering women in the country.
