Malawians Gain through Microfinance: Malawi

This document is a field note for the accomplishment of USAID's Malawi Mission. It records the story of Opportunity International Bank of Malawi's (OIBM's) success in assisting Malawi's farmers and small businesses.

The paper recognizes that microfinance assists farmers and families struggling with HIV/AIDS to:

• Save money;
• Protect their assets;
• Plan for their families' futures.

It asserts that microcredit helps to

• Increase employment;
• Alleviate poverty;
• Promote economic growth.

As per the paper, since May 2003, OIBM has reached:

• A client base of more than 11,000;
• Outstanding deposits totaling US $1.1million;
• An average repayment rate of 98%;
• 70 per cent women clients.

According to the note, OIBM's USP is:

• Simple procedures for opening and operating an account;
• Minimization of paper work;
• Low minimum balance;
• Speedy delivery;
• Access to capital at fair market rates without producing collateral;
• Emphasis on savings.

OIBM's future plans include:

• Expansion to more locations;
• Launch of new products including funeral insurance.

The note concludes that the USAID supported OIBM has become a model of a sustainable and effective microfinance institution.