Malawi's Medf Disburses 15% of K25 Billion CDF Loans

The Malawi Enterprise Development Fund (Medf) has disbursed only K3.7 billion of the K25 billion released for CDF youth and women loans, data from the fund shows. This represents 15% of the total amount released. The disbursements were recorded between August 24 and November 4, 2026, and covered 9,023 loan accounts across 33 of the country's 36 local councils and 141 of the 229 constituencies.

According to Medf's CDF live dashboard, 88 constituencies had not received a single disbursement by early November, while three councils had also not benefited. The breakdown of the disbursements shows that K2.1 billion went to youth empowerment, covering 5,176 loan accounts, while K1.6 billion was disbursed under women's empowerment, covering 3,447 loan accounts.

Medf chief executive officer Kayisi Sadala confirmed that the government released an additional K10 billion, taking its contribution to the initiative to K25 billion. He urged eligible young people and women to apply for the loans through their respective Area Development Committees (ADCs) and local councils. However, Sadala acknowledged that delays in some councils were slowing access to the loans.

The slow pace of disbursements raises fears that constituencies could fail to absorb their annual allocations. Ministry of Local Government and Rural Development spokesperson Chimwemwe Njoloma said that low absorption remained a challenge, particularly under the youth and women empowerment initiative. She cited issues with applicants having outstanding loans with other financial institutions, making them ineligible for Medf loans.

Njoloma said the ministry was engaging councils to sensitise communities on the need for members with outstanding loans to settle their debts before applying for Medf funding. The ministry's Principal Secretary Moses Chimphepo will assign an officer to respond to a questionnaire on the developments. Treasury spokesperson Williams Banda did not provide figures on the latest disbursements.

National Advocacy Platform chairperson Benedicto Kondowe said the slow disbursement reflected capacity constraints and inadequate public awareness of the available funding. He called for improved coordination between councils, Medf, and Treasury to ensure resources reached intended beneficiaries within reasonable timeframes.

The Democratic Progressive Party administration increased the CDF allocation from K220 million to K5 billion per constituency from April 1, 2026, to accelerate grassroots development. Under the funding guidelines, 72% of the allocation goes towards community development projects, while 10% is reserved for district-wide projects.

Key points

• Only 15% of the K25 billion CDF loans for youth and women empowerment has been disbursed.
• The slow pace of disbursements raises fears that constituencies could fail to absorb their annual allocations.
• The Ministry of Local Government and Rural Development is engaging councils to sensitise communities on the need for members with outstanding loans to settle their debts before applying for Medf funding.