27 October 2016 Last updated at: 12:58 PM

Malawi to form farmers’ bank using MSB proceeds

The Malawi government has revealed plans to establish a bank which will be offering loans to farmers.

Documents accessed from the ministry of finance, economic planning and development show that the bank will be opened using proceeds from the sale of Malawi Savings Bank (MSB).

Goodal Gondwe

Finance Minister Goodall Gondwe has confirmed the development.

In an interview, minister of finance Goodall Gondwe said the bank will be named Farmers Cooperative Bank.

According to Gondwe, financial and economic experts are currently discussing on the issue.

He said soon after consultations, government will roll out the Bank which will help ease the challenges which farmers face to access loans in private commercial banks.

Gondwe said the DPP led administration values agriculture as a vital tool for the economic development of this country.

Meanwhile, Farmers Union of Malawi (FUM) has hailed government for the decision.

Last year,  government sold the Malawi Savings Bank to FDH holdings Limited for K9.5 billion despite criticism from some stakeholders.

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