€7.5 Million Deal Opens Doors for Malawi’s Small Farmers and Women

EIB Vice-President Marko Primorac described the partnership as a way of directing funding towards rural communities and businesses that struggle to obtain it.

Smallholder farmers and micro agri-food businesses in Malawi stand to gain access to longer-term finance through a €7.5 million loan from EIB Global to Centenary Bank, bringing new support to rural communities where livelihoods depend heavily on agriculture. The funding, provided under the European Union's Global Gateway initiative, will help the bank extend lending to borrowers whose opportunities to invest in their farms and businesses are often restricted by limited access to credit.

Half of the financing is earmarked for sustainable, climate-resilient agriculture, with the other half dedicated to women's economic empowerment. These commitments put farmers and women entrepreneurs at the centre of an investment intended to reduce rural poverty and strengthen businesses that support household incomes, food production and employment across Malawi.

Bringing Finance Closer to Rural Livelihoods

Agriculture accounts for more than 70% of employment in Malawi, making access to finance a concern that reaches far beyond individual farms. For small producers and agri-food businesses, the ability to borrow over a longer period can create room to invest in production and business growth, with benefits reaching the families and communities that depend on their earnings. Limited financing has held back the development of sustainable farming, leaving many smaller businesses with few opportunities to make those investments.

EIB Vice-President Marko Primorac described the partnership as a way of directing funding towards rural communities and businesses that struggle to obtain it. "When a micro-business can borrow, it can invest and grow," he said, linking that growth to more jobs and higher income for business owners and their families. Centenary Bank's local presence will provide the channel through which the European funding reaches eligible borrowers.

Giving Women More Room to Build Their Businesses

Women play a central role across Malawi's agricultural value chains, facing persistent gender-specific barriers that make financing harder to secure. Dedicating half of the funding to their economic empowerment gives the partnership a clear priority: expanding financial opportunities for women whose businesses contribute to local livelihoods and agricultural production. The operation supports the EU's "Women for Stronger Communities and Growth" initiative, which focuses on resilient livelihoods for women.

Centenary Bank Acting Managing Director Beatrix Mosiwa called the agreement "a great milestone" for the bank, saying it brought its mission of transforming lives through inclusive and sustainable financial services closer to reality. A comprehensive technical assistance programme will help the bank expand agricultural lending, reach underserved clients and encourage the adoption of climate-resilient farming practices, giving the financing a supporting structure beyond the loan itself.

Connecting Local Growth With a Wider Partnership

An EU-financed guarantee supports the operation, which forms part of Global Gateway's investment commitments and the broader development partnership between Malawi and Europe. Agri-food products make up most of Malawi's exports to the European Union, giving stronger, more sustainable local production a role in protecting livelihoods and reinforcing trade links. EU Ambassador to Malawi Daniel Aristi Gaztelumendi described the signing as an example of Team Europe combining its finance and expertise with Centenary Bank's capacity and outreach to support women and young people in agriculture.

The European Investment Bank's engagement in Malawi dates back to 1977, with more than €630 million invested across 47 projects supporting small businesses and sectors including energy, water and transport. This latest agreement directs funding to locally rooted agricultural enterprises, with benefits reaching from individual borrowers to the wider food system through stronger businesses, job creation, and greater resilience to climate pressures.