• Malawi
  • Resources
  • Access to Finance
  • Access to Capital
  • Access to Capital

Access to capital for women entrepreneurs in Malawi

Formal financial access in Malawi is very limited. Over half the population remains excluded. Consequently, financial service use is largely informal and lack of proximity to financial services is the key barrier to inclusion in Malawi. Financial inclusion is important for women because it helps them make payments reliably, access credit which can be invested in their enterprises, and to save. Financial inclusion has been seen to improve access to insurance products and services which are critical safeguards against risks in any type of business.

angle-left Wealthnet Finance PLC

Wealthnet Finance PLC

Wealthnet Finance PLC started its operations in 2016. It offers savings, credit and payment solutions products to economically active persons in Malawi. The target market includes the unbanked, the employed, the Small and Medium Enterprises (SMEs), and retail-&-wholesale customers/suppliers. 

Financial Products

Wealthnet Finance provides two main loan products that stand out for women entrepreneurs.

Wealth Creation Business Group

Wealth Creation Business Group (WCBG) is a group of 7-15 business people, who are passionate about multi-generational wealth creation. They save their money as a group on a monthly basis through buying shares called Gold Bars; and, have access to loans for their businesses from the group savings and at Wealthnet Finance. Wealth Creation Business Groups are established to bring sustainable financial services to its members as they build their wealth/assets from one level to another.

The WCBG runs in cycles of 12, 18, 24, 36 and 48 months according to the preference of the group. At the end of a cycle, members share out their savings and interest in proportion to saving as represented by Gold Bars.

To increase the Loan Fund, Wealthnet Finance automatically releases the equivalent of 20% of the total amount saved by members. This increases the amount of money in the Group Investment Fund for borrowing.

Other support to WCBG

Wealthnet Finance facilitates the development and training of the group. Wealthnet Finance is a default Trustee and Treasurer of the group and keeps all group’s financial records and transactions using its core banking system. Wealthnet Finance facilitates the opening of the group’s bank account, arranges external financing and trainings, but also supports in establishing the group’s large scale co-operative businesses and many more.

Interest rates for WCBG Loans

The interest rate is determined by the group members when they are formulating their own constitution. This ranges from 7.5% to 10% per month.

Wealthnet Small and Medium Enterprise (SME) Business Loan

This is a loan advanced to a business in need of capital investments. Details are as follows:

o The interest charged is based on the amount of the loan

o For a loan of up to MK2,000,000 the interest rate is 6% per month

o A rate of 8% per month is charged on loans of more than MK2,000,000

o In both cases, the repayment period is 12 months except for those borrowing for the first time whose period is 6 months

o First timer borrowers must also deposit 5% of the loan sought

 To qualify for the loan, an SME must satisfy the following:

  • A business must have existed for 12 months
  • A business must collateral that coves at least 75% of the loan
  • Collateral must be registered property for loans above MK2,000,000

Contact information

Lilongwe
Area 6 off M1 Road

Blantyre
Nyambadwe along the Blantyre-Chileka dual carriageway

Tel: +265 (0) 310000580 / + 265 (0) 884333967 / +265 (0) 998274204
Emails: ceo@wealthnetfinance-mw.com, sales@wealthnetfinance-mw.com, admin@wealthnetfinance-mw.com, and operations@wealthnetfinance-mw.com

share-alt