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| National |
| Muluzi lies on Masaf |
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by
Denis Mzembe, 05 December 2003
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14:08:21
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The Malawi Social Action Fund (Masaf) said on Thursday there will be no loan component in Malawi Social Action Fund (Masaf) III.
This contradicts statement from President Bakili Muluzi during the launch of Masaf III and at his rallies that the programme will have a credit component for small-scale entrepreneurs.
Masaf director of Community Development Programme Ida Manjolo said in an interview the Masaf III will not disburse any loans but will instead encourage people to develop a savings culture.
“The programme aims at promoting a savings culture. Communities will form groups engaged in activities like dairy farming. Those groups will be encouraged to put aside savings so that at a later date, they can be linked to micro finance institutions and can use the savings as collateral,” Manjolo said.
She said Masaf would like to build a culture of savings “and move to a culture of credit and people at that point will have known the importance of rebuilding the culture of repaying loans”.
Malawi Economic Justice Network (Mejn) director Collins Magalasi said Masaf does not have the structures to disburse loans and does not have that money for loans. It would have to put in very clear money recovery systems otherwise the money would just be a donation,” Magalasi said.
President Bakili Muluzi said at the launch of Masaf III in Mangochi on October 28 and during subsequent rallies the programme will have a credit component that will benefit street vendors and other small-scale entrepreneurs.
Politicians from the ruling United Democratic Front party have also been telling the masses Masaf III, to be funded to the tune of K5.3 billion, is unique because of the loan component.
UDF publicity secretary Ken Lipenga said while he did not have details regarding Masaf planned activities, “I know that there is a poverty reduction element within the programme”.
World Bank Resident Representative in Malawi, Dunstain Wai, said he could not comment on the loan component. “You would have to go through our funding document to find out details of the components we are funding,” Wai said.
Manjolo also confirmed several projects under Masaf II have not been completed but she added Masaf has given project implementors until December 15 to wind up the projects.
“We have agreed with the Bank that all justification should be done by December 15. The projects need to be completed before new projects can be embarked on. A lot of unfinished structures would give a negative impact of the investment,” Manjolo said.
Some observers have said because several projects under Masaf II have not been completed, the launch of Masaf III was premature.
The sources who declined to be named said implementation of projects under Masaf III will only start after about six months from last month.
Manjolo also confirmed funding for the projects will not start immediately because the projects have to go through processes of appraisal, process of approval at the district assembly level and at the Masaf Management Unit through the board.
She, however, said there shouldn’t be any problem on funding and that government will also give counterpart funding.
Wai said following the launch of Masaf III, the programme is effective but added: “It will be up to Masaf to approach us for the money when they are ready” |
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