Small agricultural businesses to benefit from €7.5 million financing under EIB Global agreement with Centenary Bank Malawi

• Funding will be channelled to agri-food businesses with fewer than 10 employees and small-scale farmers in Malawi
• Of the financing, 50% is earmarked to promote sustainable agriculture and another 50% for women and youth led businesses
• Supported by an EU-financed guarantee, the new operation contributes to the European Union's "Global Gateway" goal for sustainable agriculture development in Malawi

As part of the European Union's Global Gateway initiative, new financing opportunities are being created for Malawi's agricultural sector. EIB Global which is the development arm of the European Investment Bank Group, will provide €7.5 million to Centenary Bank to strengthen lending to smallholder farmers and micro agri-food enterprises.

Of the total financing, 50% is earmarked to promote sustainable, climate-resilient agriculture in Malawi and another 50% is due to advance the economic empowerment of women in the country. This targeted approach will help broaden access to long-term finance for communities and entrepreneurs that are vital to Malawi's economy.

The goal is to reduce rural poverty in Malawi, where agriculture accounts for more than 70% of employment. Sustainable farming is underdeveloped partly as a result of limited access to finance. Moreover, women entrepreneurs, who play a central role across the country's agricultural value chains, face additional and persistent gender-specific barriers.

The EIB Global loan is accompanied by a comprehensive technical assistance programme. The technical assistance will aim to strengthen the capacity of Centenary Bank to scale up agriculture lending and deepen its outreach to underserved clients and encourage them to adopt climate-resilient agricultural practices.

"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," said EIB Vice-President Marko Primorac. "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."

The operation, which is also supported by an EU-financed guarantee, contributes to the European Union's "Global Gateway" investment commitments and reflects EIB Global's focus on visible, high-impact and mutually beneficial partnerships between EU and Malawi. By combining European financing, local banking capacity and support for sustainable agriculture, it advances Malawi's development priorities while strengthening the EU's long-term partnership with the country.

"This is a great milestone for Centenary Bank ," said Centenary Bank Acting Managing Director, Beatrix Mosiwa. "We can see our mission of transforming lives through inclusive and sustainable financial solutions becoming a reality."

Agri-food products account for most of Malawi's exports to the European Union. By strengthening sustainable production and access to finance, the operation can help make local value chains more resilient and reinforce economic links between Malawi and Europe. It also supports the EU initiative "Women for Stronger Communities and Growth", which aims at supporting resilient livelihoods for women.

"Today's signing is an excellent example of Team Europe working together," commented Daniel Aristi Gaztelumendi, Ambassador of the EU to Malawi. "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."

Since 1977, EIB Global has invested more than €630 million in 47 projects in Malawi, supporting small businesses and public and private investment in sectors including energy, water and transport. The new partnership builds on this long-standing engagement by directing finance to locally rooted businesses that can create jobs, strengthen food systems and support climate resilience.