9M€
Portfolio Amount
99 850
Number of beneficiaries
80.4%
Women beneficiaries
64.6%
Rural beneficiaries
Malawi
Financial services
Funding granted
Loan of €750,000*
(local currency equivalent)
Foundation Partner
since 2017
(2 loans granted)
*Outstanding at grant value
Context :
Despite progress made in recent years, the Malawian population continues to face significant development challenges. The economy is largely based on agriculture, which employs approximately 801,300 people. The country faces major challenges such as chronic food insecurity, vulnerability to climate shocks, and a heavy reliance on rain-fed agriculture.
The company:
VisionFund Malawi is a microfinance institution, a subsidiary of VisionFund International and an associate of World Vision. Established to serve rural and peri-urban communities in Malawi, it focuses particularly on vulnerable populations with limited access to formal financial services. VisionFund Malawi operates in several regions of the country, with a special focus on areas where World Vision conducts community development programs.
Impact :
VisionFund Malawi's mission is to provide responsible financial services that empower families to increase their income and strengthen their economic resilience, directly impacting children's well-being. The institution offers microfinance products tailored to the local context, including seasonal agricultural loans, small business loans, and savings services. VisionFund Malawi distinguishes itself through its integrated approach, combining financial and non-financial services, including financial management training and entrepreneurial skills development.
In 2018 the Foundation invested €3.7 million in East Africa
It has thus financed two partners in Kenya: BIMAS, with a loan of 500,000 euros, and VERT Ltd. with a loan of 440,000 euros. BIMAS is a microenterprise development program (MED-P) established in 1992 under the auspices of PLAN Embu. Its objective is to contribute to sustained economic growth and employment in the rural sector, which will result in improved social well-being and increased income for the rural population in Kenya. To date, BIMAS has more than 18,500 clients, including 66.5% women. VERT Ltd., for its part, is a company specializing in the export of fresh fruits and vegetables. The company, created in 2000, has adapted its business model over the years to better meet the specificities of the European market and adapt to current legislation. It has also implemented a more sustainable model by working directly with small local farmers organized into small groups. The Foundation has been a shareholder in VERT Ltd since 2016.
The Foundation also provided its first funding to the MicroLoan Foundation in Malawi, with a €256,000 loan. The MicroLoan Foundation is a UK-based microfinance charity that provides business training, loans, and ongoing support to women living in Malawi, Zambia, and Zimbabwe. The organization's primary goals are poverty reduction and women's empowerment. In Malawi, the institution now has nearly 30,000 clients, all women. In Uganda, the Foundation provided a new €700,000 loan to the microfinance institution UMF. UMF (Uganda Microcredit Foundation) is a microfinance institution that provides loans and other microfinance services to economically active people in Uganda. The institution specializes in commercial and personal, financial, and non-financial products for businesses and individuals to facilitate their development. The institution has more than 4,000 clients, including 54% women and 70% in rural areas.
In Zambia, the Foundation also funded two partners: AMZ with a €600,000 loan over a four-year period and FINCA Zambia with a €1.2 million loan over a three-year period. Agora Microfinance Zambia (AMZ) is a microfinance institution that specifically targets low-income individuals with appropriate financial products. AMZ aims to serve clients who were previously excluded from the formal financial market, primarily due to their poverty or place of residence. It has over 25,000 clients in 391 rural areas. 611 of these clients are women. FINCA Zambia, for its part, is a multi-service microfinance institution that currently serves over 9,000 clients with financial services, including loans, savings, payments, and money transfers. FINCA Zambia's clientele includes 571 women.
For more information about our partners, click here.