Malawi

Malawi is one of the world's poorest countries. More than half of its 18 million citizens live below the poverty line. The vast majority of people subsist on agriculture, living in rural areas where services of any kind are scarce.

FINCA Malawi is a regulated, deposit-taking microfinance institution. In operation since 1994, FINCA's reach extends across the country through traditional bank branches and through a network of banking agents, working out of small shops in local communities, including the rural areas where most people live. Our products include group and individual loans, savings and insurance.

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Financial Inclusion

Malawi:
Reaching the Financially Excluded

77% Adult population financially excluded

20,380 64% Female borrowers % #

53,243 Total FINCA clients

17,926 56% Borrowers in rural areas % #

32,011 Total FINCA borrowers

In a country characterized by high levels of financial exclusion, FINCA Malawi has also been successful at reaching some of the most disadvantaged communities. Women make up about two-thirds of its borrowers, the highest in the region. FINCA Malawi also has a strong outreach torural borrowers.

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Living Standards

Malawi:
Quality of Life

16,966 53% Client homes without water % #

16,966 53% Client homes without electricity More clients lack electricity in Malawi than anywhere else in the region. % #

21,447 67% Client homes without access to Internet High taxes and poor infrastructure, among other obstacles, make access to the Internet prohibitively costly, % #

9,923 31% Clients who don’t own their home % #

16,806 53% Head of household with primary education or less % #

Our clients in Malawi struggle with some of the toughest living conditions, even by regional standards. Over half of borrowers live in homes with no water or electricity—among the highest in the world. To light their homes, clients must resort to kerosene lanterns and candles, which are dangerous and costly. These conditions directly undermine the health and education of children.

Very low educational levels also prevail among our borrowers in Malawi. Less than half of the breadwinners have higher than a primary education. This indicator is generally low throughout the sub-Saharan subsidiaries as well as Latin America. Low educational levels place severe constraints on parents' ability to earn a decent income while also limiting the educational prospects of their children.

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Income & Employment

Malawi:
Income & Employment

$2,727 27% Average annual profit FINCA clients in Malawi earn an average annual profit of $2,727, the second highest in the region. This represents 27% of their total sales. % #

2.9 Average # of employees per client enterprise Includes the owner. Our borrowers in Malawi generate more employment than any other FINCA subsidiary.

92,024 People employed in FINCA-funded enterprises

19,381 21% Employees hired due to FINCA loan % #

57,055 62% Wages paid above the poverty line % #

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In the midst of a difficult economic environment, it is encouraging to find that FINCA clients in Malawi earn an average annual profit of $2,727. They are also successful at generating jobs, employing 2.9 people per enterprise, the highest in the entire network. FINCA clients estimate that about 20 percent of the total employment is due to the FINCA loan. Wage quality is also surprisingly good; two-thirds of workers are earning wages that are above the national poverty line.

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Women’s Empowerment

Malawi:
Empowering Women

20,380 64% Female borrowers % #

6,689 21% Clients with female-headed household % #

16,723 52% Households with female as main earner % #

18,246 57.0% Businesses run by women % #

34,252 37% Women employed by enterprises Avg. #

53,374 58% Jobs created by women 58% of total jobs created by FINCA Malawi borrowers were created by women. % #

Women in Malawi are responsible for growing the family's food as well as running the household and caring for children. The majority of FINCA's female borrowers are the main breadwinner in their family, including 21 percent who are single mothers. The great majority of FINCA's female borrowers run their own businesses, and they are responsible for creating 58 percent of the total employment.

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Clients’ Goals

Malawi:
Attaining Business and Personal Goals

Goals Set By FINCA Borrowers

Goals Met By FINCA Borrowers

3,359 10% Start a business % #

13,244 41% Expand a business % #

1,783 6% Invest in education % #

10,284 32% Improve their home % #

2,943 9% Buy an asset % #

384 1% Pay down debts % #

3,359 100% Start a business % #

12,673 96% Expand a business % #

1,783 100% Invest in education % #

9,695 94% Improve their home % #

2,943 100% Buy an asset % #

384 100% Pay down debts % #

The most common goal, cited by 41 percent of our clients in Malawi, is to grow an existing business. This is pretty common among FINCA clients around the world. But another 10 percent are starting a new venture, which is higher than average. After business-related goals, home improvement is high on the list of priorities; 32 percent of customers cite this objective in Malawi, more than any other country in the network, except Kyrgyzstan.

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Special Topics

Malawi:
Poverty, Economic Sectors, Jobs and Profits

FINCA Loan Sectors

22,984 72% Trade % #

4,261 13% Services % #

1,591 5% Manufacturing % #

3,147 10% Crops % #

0 0% Livestock % #

Profit and Profit/Sales Ratio by Sector

$2,966 25% Trade Profit/sales ratio Avg. profit

2,547 34% Services Profit/sales ratio Avg. profit

$1,580 36% Manufacturing Profit/sales ratio Avg. profit

$1,832 21% Crops Profit/sales ratio Avg. profit

$0 0% Livestock test Profit/sales ratio Avg. profit

Jobs by Sector Due to FINCA Loan

12,285 63% Trade % #

4,560 24% Services % #

745 4% Manufacturing % #

1,791 9% Crops % #

0 0% Livestock % #

Malawi

Financial Inclusion

Malawi:
Reaching the Financially Excluded