Rural Financial Services Project: Mudzi Financial Services Sub-project

IFAD Asset Request Portlet

Asset Publisher

Rural Financial Services Project: Mudzi Financial Services Sub-project

Rural Financial Services Project: Mudzi Financial Services Sub-project

IFAD and the International Development Association (IDA) jointly supported the Smallholder Agricultural Credit Project, which was seen as a logical step in the development of rural banking institutions in Malawi. But a step further was required to meet the needs of rural poor people who were excluded from credit. That step led to the Rural Financial Services Project (RFSP), financed by IDA, and to the Mudzi Financial Services Sub-Project, supported by IFAD.

While the RFSP provided a broad coverage of financial services, the Mudzi sub-project specifically provided credit and savings facilities for resource-poor people who did not have access to other formal financial institutions. The model was the Grameen Bank operations.

The RFSP supported the transformation of a smallholder credit scheme, the Smallholder Agricultural Credit Administration (SACA), into the Malawi Rural Finance Company (MRFC) a limited liability company in which government and the private sector, including farmers’ clubs, were shareholders. This was the first phase of a two-phase programme to transform the SACA into a rural bank.

The sub-project included support for:

  • pre-lending activities, such as promoting formation of groups of poor households
  • a credit facility to enable MRFC to provide credit to members of groups
  • a pilot programme to develop new instruments for savings


Source: IFAD

Status: Closed
Approval Date
02 December 1993
1993 - 2001
Credit and Financial Services
Total Project Cost
US$ 49.93 million
IFAD Financing
US$ 11.99 million
Co-financiers (International)
World Bank: International Development Association US$ 25 million
Co-financiers (Domestic)
Domestic Financing Institutions US$ 4.7 million
National Government US$ 5.24 million
Beneficiaries US$ 3 million
Financing terms
Highly Concessional
Project ID

Project design reports

Supervision and implementation support documents

Environmental and social impact assessment

Final environmental and social management framework

Interim (mid-term) review report

Resettlement action framework

PCR digest

Special study

Project list

Audit and Financial Statements

Project completion report