MALAWI —A new credit line targeting smallholder agricultural enterprises and micro agri-food operations in Malawi has been finalized through a joint initiative between EIB Global and Centenary Bank Malawi. Supported by a European Union (EU) guarantee under the Global Gateway framework, the €7.5 million transaction delivers dedicated long-term financing to small enterprise operators with fewer than 10 employees. Centenary Bank, a commercial financial institution operating in Malawi, focuses on providing retail banking services and microfinance solutions designed to foster financial inclusion across rural and urban communities.
Agriculture serves as the foundation of Malawi's economy, accounting for over 70% of employment and generating the majority of the nation's export trade with the European Union (EU). However, limited access to commercial banking capital continues to restrict smallholder capacity and slow structural modernization. By channeling long-term liquidity directly into small-scale production, this initiative directly addresses capital scarcity in rural regions while strengthening bilateral economic integration between Sub-Saharan Africa and European agricultural markets.
Under the operational terms of the program, funding allocation is divided equally between climate-resilient sustainable agriculture investments and ventures owned or operated by women and youth. Coupled with targeted technical assistance to enhance credit underwriting for agricultural clients, the facility addresses key systemic constraints such as gender-based financing disparities and vulnerable supply chain structures. For investors and market players, the blending of EU risk-sharing instruments with local commercial banking capabilities offers a reproducible model for expanding development finance into high-risk primary industries.
