NEEF Loans: Cultivating Growth and Accountability
By Asiatu Ngulinga
In the heart of Mangochi District, small-scale farmers in Lingamasa are finding new hope through the National Economic Empowerment Fund (NEEF)—a government-backed loan facility aimed at improving livelihoods through agriculture and entrepreneurship. But with opportunity comes responsibility.
While the NEEF loans have empowered many to grow their farming businesses, concerns are emerging about the misuse of funds and challenges in repayment. Some recipients, instead of investing in productive ventures, have diverted the loans to household consumption—jeopardizing both their future and the sustainability of the program.
Ajusu Saidi, a small-scale irrigation farmer and one of the successful NEEF beneficiaries, believes that discipline and purpose are key to benefiting from the initiative.
“These loans were clearly meant for farming,” he explained in an interview. “But it is worrying that some people are using the money for things like food or school fees instead of planting crops that can help them repay the loans.”
Ajusu used his loan to invest in irrigation farming, growing tomatoes and leafy vegetables. Thanks to favorable yields and consistent sales at the local market, he has already repaid part of his loan and plans to complete repayment before the agreed deadline.
“I’m urging fellow farmers to take this opportunity seriously,” he said. “Choose crops that mature fast and have a market. That way, you can repay the loan and still make a profit to support your family.”
NEEF officials have also noted that timely repayments are essential if the program is to reach more citizens. Since the fund operates on a revolving basis, repayments from one group help finance the next. Defaults or delays in repayment limit how many new beneficiaries can be supported.
According to NEEF guidelines, loans are issued after a community vetting process that evaluates the applicants’ business plans, group accountability, and repayment capacity. Yet, in practice, enforcement of these criteria is not always consistent, leaving room for misuse and poor outcomes.
Despite these setbacks, stories like Ajusu’s show that with proper planning and commitment, the NEEF loan can be a genuine springboard to self-reliance.
“As someone who has seen the benefits firsthand, I believe this program can lift many out of poverty,” he said. “But only if we use it as intended and honour our obligations.”
NEEF continues to play a crucial role in promoting economic empowerment across Malawi. However, its success will depend not just on the disbursement of funds, but on the responsible actions of the beneficiaries it serves.
