Abstract: Micro, small and medium enterprises play a crucial role in the economic development of any country and Malawi is not an exception. However, one of the major problems bedeviling the growth and survival of MSMEs is limited access to finance. The extent of the problem is of so much concern in Malawi where market interest rates are always exorbitantly high. As one of the ways of mitigating the problem, this paper analyses some of the financing mechanisms Malawi can adopt and institutionalize in order to boost the SME sub-sector. These mechanisms include credit guarantee schemes, equity guarantee schemes, and import and export credit facilities. However, the paper recommends that these facilities suit the medium category of the MSMEs as the micro and small categories will still find it hard to access. This recommendation is informed by practices and experiences from jurisdictions that have advocated for and adopted such mechanisms.
Keywords: access to finance, credit guarantee schemes, desk study, equity investment, export financing, Malawi.
Title: Exploring Alternative Sources of Financing Small and Medium Enterprises (SMEs) In Malawi: Lessons from Elsewhere
Author: Richard Zidana
International Journal of Management and Commerce Innovations
ISSN 2348-7585 (Online)
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