Malawi’s smallholder farmers and micro agri-food businesses are set to gain access to more financing under a €7.5 million ($8.6 million) loan from the European Investment Bank’s development arm, EIB Global, to Centenary Bank Malawi.

The funding is designed to expand lending to rural businesses, strengthen agricultural value chains and support entrepreneurs in an economy where agriculture accounts for more than 70% of employment.

EIB targets Malawi’s rural finance gap

Half of the financing will support sustainable and climate-resilient agriculture, while the remaining 50% will promote women’s economic empowerment.

The structure reflects the financing challenges facing Malawi’s agricultural sector, where limited access to capital has constrained investment in sustainable farming. Women entrepreneurs, who play a central role in agricultural value chains, also face persistent barriers to finance.

The partnership aims to broaden access to long-term funding for rural communities and businesses that underpin Malawi’s economy.

The EIB Global loan comes with technical assistance to help Centenary Bank expand its agricultural lending capabilities, reach underserved customers and encourage climate-resilient farming practices.

“In Malawi, seven in ten people earn their living from the land, yet the smallest farms and agri-businesses are often the last to receive financing,” said EIB Vice President Marko Primorac.

Centenary bank expands agricultural lending

“This is a great milestone for Centenary Bank,” said Acting Managing Director Beatrix Mosiwa. “We can see our mission of transforming lives through inclusive and sustainable financial solutions becoming a reality.”

The operation also brings together European financing and expertise with Centenary Bank’s local reach, according to Daniel Aristi Gaztelumendi, the European Union ambassador to Malawi.

The EU says the partnership supports its “Women for Stronger Communities and Growth” initiative, which focuses on resilient livelihoods for women.

EIB deepens Malawi investment

Agri-food products account for most of Malawi’s exports to the European Union. The new financing could help strengthen local production, agricultural value chains and economic links between Malawi and Europe.

EIB Global was launched in January 2022 as the international development arm of the European Investment Bank. It operates across Sub-Saharan Africa, Asia, the Pacific, Latin America and other regions, and supports the EU’s €300 billion ($346 billion) Global Gateway initiative.

Since 1977, EIB Global has invested more than €630 million ($727 million) in 47 projects in Malawi, supporting energy, water, transport and private investment.

Centenary Bank Malawi Limited is a commercial bank that provides inclusive financial services, microfinance, and credit solutions across Malawi. Launched in March 2023 after Uganda’s Centenary Group and the Roman Catholic Archdiocese of Lilongwe acquired the former MyBucks Bank Malawi.

The new Centenary Bank partnership extends that engagement to locally rooted businesses, with a focus on jobs, food systems and climate resilience. The European Investment Bank is the lending arm of the European Union and finances projects supporting economic growth, employment and environmental sustainability.