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Centenary Bank in Malawi will receive $8.5 million in financing from EIB Global, the development arm of the European Investment Bank Group, to strengthen lending to smallholder farmers and small agri-food businesses.
Half of the funding will go toward sustainable, climate-resilient agriculture, and the other half toward businesses led by women and young people.
The deal is backed by an EU-financed guarantee and forms part of the European Union’s Global Gateway initiative for sustainable agriculture in Malawi.
“This is a great milestone for Centenary Bank. We can see our mission of transforming lives through inclusive and sustainable financial solutions becoming a reality,” said Beatrix Mosiwa, Acting Managing Director of Centenary Bank.
Centenary Bank is receiving new funding to help smallholder farmers and small agri-food businesses in Malawi that have fewer than 10 employees. Agriculture employs over 70% of people in the country, but many struggle due to a lack of financial support.
Women entrepreneurs face extra challenges even though they are crucial to agriculture.
The EIB Global loan comes with a support programme to help Centenary Bank improve its agriculture lending. This program aims to reach more underserved clients and promote climate-friendly farming practices.
The funding also supports the EU initiative “Women for Stronger Communities and Growth,” which focuses on building resilient livelihoods for women.
“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. Our partnership with Centenary Bank puts long-term funding where it is needed most: in rural communities. When a micro-business can borrow, it can invest and grow. And when it grows, that means more jobs and more income for the promoter and family behind it,” said Marko Primorac, EIB Vice-President.
Since 1977, EIB Global has invested more than €722 million in 47 projects in Malawi, supporting small businesses and public and private investment in sectors including energy, water and transport.
“Today’s signing is an excellent example of Team Europe working together. It brings together the different parts of the European family, combining our finance and expertise with the capacity and outreach of Centenary Bank, to achieve greater impact, empowering women and youth in the agriculture sector,” said Daniel Aristi Gaztelumendi, Ambassador of the EU to Malawi.
In June, Nigeria secured a $229.2 million partnership with EIB Global and the Development Bank of Nigeria. This loan aims to support small businesses and promote green and digital growth, with a focus on agriculture, renewable energy, digitalisation, and innovation.
