NBM Development Bank model earns international praise for empowering SMEs
The development bank model being championed by NBM Development Bank Limited has earned international praise for its role in supporting the growth of Small and Medium Enterprises (SMEs) and driving inclusive development in Malawi.
The commendation came from Scottish First Minister, John Swinney, who earlier this week met directors and officials from NBM Development Bank Limited and other SME representatives in Blantyre to appreciate their progress and innovative business ideas.
“I support the development bank model because it provides an opportunity for SMEs to grow by accessing financial support which is not the same as loans from commercial banks,” said Swinney. “Scotland is committed to supporting Malawi in areas like health, education, and climate change mitigation through collaborative projects, including support for grassroots initiatives and rural development. Our government is committed to investing in projects that build capacity and attract further investment.”
NBM plc Chief Operations Officer, Masauko Katsala, who also serves as one of the directors of NBM Development Bank Limited, thanked the Scottish First Minister for the engagement, while calling for sustained collaboration to strengthen efforts in empowering local entrepreneurs.
“The Development Bank provides debt and equity capital to SMEs in key sectors and offers business support services to ensure their viability,” Katsala explained. “What distinguishes our model from traditional commercial lending is that every application must demonstrate development impact, such as promoting environmental sustainability, supporting clean energy, or creating jobs.”
Katsala added that the bank has already financed several women-led projects that are thriving, further showcasing NBM plc’s commitment to promoting women’s empowerment and inclusive economic participation across Malawi.
NBM Development Bank Limited, a subsidiary of National Bank of Malawi (NBM) plc, is a Development Finance Institution licensed by the Reserve Bank of Malawi (RBM). It was established as NBM plc’s long-term financing arm to support small and medium enterprises through flexible and impact-driven funding solutions.
