The Micro Credit programme of the Eva Demaya Centre helps the inhabitants of Northern Malawi to increase their income from agricultural production.
In Malawi most people live from small scale agriculture.
The most important product is maize, which is grown for personal consumption and as cash crops, as are beans, soya and peanuts.
Other important agricultural products grown especially as cash crops are tobacco, cotton, tea and coffee.
Growing maize has become more difficult for the people in northern Malawi because of changing climate conditions.
People have to change their farming methods.
The Malawian government supports them in this because it is of national interest that enough food is produced.
For some years now, the Centre has been helping the community to increase their production of maize and soya by means of its micro credit facility. The micro credits are given to groups of people who have organized themselves to act as a team in the production of their crops and who will stand as guarantors for each other in the repayment of the loans.
In just-ended growing period almost 120 people, organized into 12 groups, received a small credit to buy their seeds and fertilizers. These loans can vary between 75 and 250 Euros per person depending on the individual’s financial strength.
The season just ended has been good for the maize crop. Between May and September all the crops will have been either stored or sold. The balance of the harvest is used up and repayment of the loans takes place.
It is expected that over 95% of the outstanding credits will be paid back and reinvested for next year’s agricultural production.