UNDP sign micro-financing project

The Malawi government and the United Nations have signed a 4 million U.S. dollars micro- financing project to service poor and low-income population groups.

The website of The Nation newspaper of Malawi Wednesday quoted a statement from the United Nations Development Program (UNDP) as saying Tuesday that in Malawi, only 3 percent of the population has access to saving services while a marginal 1 percent access credit.

Insurance services are virtually absent while the percentage of poor families with access to any financial services in rural areas is even lower, said the statement.

The UNDP and the United Nations Capital Development Fund are each contributing 2 million dollars to a 6 million dollars basket- fund which will run from 2007 to 2011.

UNDP resident representative Michael Keating said the UN strongly advocates for micro-financing as one of the best tools in alleviating poverty and contributing to achieving the Millennium Development Goals.

"The rural population accounts for over 80 percent of the population. People need access to credit to improve their standards of living, open businesses and to participate in and benefit from economic growth of this nation. Women in particular, will be targeted by the initiative," he said.