FDH Bank, MUBAS take FDH Graduate Start-ups program to higher level
FDH Bank, that initiated in 2021 a business entrepreneurship concept named Graduate Start-ups targeting Malawi University of Business & Applied Sciences (MUBAS) final year students, has taken the program to a higher level by signing a long-term memorandum of understanding (MoU).
Signed on Tuesday at MUBAS campus at Ginnery Corner in Blantyre, the Graduate Start-ups program will involve a trust fund in which beneficiary companies shall be remitting 20% of the dividends that shall be declared from their annual profits.
The funds shall then be kept in a special trust fund account with FDH Bank, which shall be used to finance future beneficiaries in order to properly sustain the program — which finances innovative and viable business plans, whose loan interests are heavily subsidized.
In her presentation to the final year students, Potamira Kumpumula took them on the processes for them to earn the financing that include forming groups of like minds of four to seven to develop innovative and viable business plans that will solve real economic problems by also identifying viable marketing opportunities.
After developing, the graduates are to present the plans to a special taskforce involving FDH Bank and MUBAS financial experts and where there are loopholes, the taskforce would offer solutions and guidance.
Once the business concept shall be approved, the bank would guide the beneficiary groups through a financial mentorship before being granted the loan at subsidized 5% interest — with a one-year repayment holiday.
The loan shall not be deposited into the beneficiaries’ bank accounts but FDH Bank shall be paying for costs of the assets and other needs direct to suppliers up until their businesses become self sustaining.
The program was initiated taking cognizance of the shrinking job opportunities and to encourage the graduating students to start thinking of venturing into entrepreneurship.
The MoU also has a component that targets MUBAS’ members of staff in which they shall be offered an opportunity of externship where they will be attached to FDH Bank for them to learn some banking management through which the lecturers shall encourage their students to think of entrepreneurship after finishing the university.
The graduate start-ups, the first of its kind in the financial services industry as well as the corporate world, started in 2021 after FDH Bank’s Deputy Managing Director, George Chitera attended as guest of honour a symposium that MUBAS’ Faculty of Education & Media Studies organised.
The business proposals that were presented impressed Chitera who, after sharing his experiences with the rest of the FDH Holdings’ management team, they resolved to gather the students again for the real time presentations that culminated into FDH Graduate Start Ups.
At the MoU signing ceremony, Chitera impressed on the final year students to think outside the box and not to just expect to be employed because the employment opportunities are shrinking.
“Malawi is poor because we do not produce,” he said. “We need to change our mindset and start producing because as long as we are not exporting, we shall remain poor.
“We should not rely on the government to produce goods for exports — it is up to us as citizens to be innovative by creating companies that produce and at the same time create jobs.
“All these corporate companies we have were born out of entrepreneurship concept. It is not easy to create a business plan but every challenge has got a solution,” Chitera said, while encouraging the students to do proper research to identify viable marketing opportunities.
In her remarks, MUBAS Vice-Chancellor, Nancy Chitera described the program as unique and in line with the MW2063 national vision of Inclusively Wealthy and Self-Reliant Nation as it calls for a shift in focus on entrepreneurship.
“Our partnership with FDH Bank is growing into something very economically huge that involves young minds to be part of the process enshrined in the MW2063 vision.
“You must utilise all opportunities by solving any challenges that can be met. Mindset change is not just dreaming of getting a job but to become an employer.”
Another component of the MoU includes establishment of a research centre on entrepreneurship that involves seminars, mentorship, partnership as an integrated approach.
The proposals from the groups that will form companies will be pooled together and the potential beneficiaries shall first present their concepts before a taskforce of experts to identify five winners.
At the inaugural selection process, there were nine companies the final year students formed — Clean Energy of Enterprise; Direct-Connect Real Estate Solutions; Kuwali interior Design & Decoration; Clean Energy of Malawi; My Artistic Dream School of Art and Gallery; Rise & Shine Secondary School; The Public Eye; Umodzi Farm and Yours Truly Event Planning & Management.
They all presented from power points their management plans; capital projections; marketing strategies; mass media visibility as well as how to cope with challenges the country is facing through the CoVID-19 pandemic.
The five that were selected for further assessment and nurturing were Rise & Shine School; Clean Energy of Enterprise (CLEE); Direct-Connect Real Estate Solutions (Di-coRES); Kuwali interior Design & Decoration (KIDD) and My Artistic Dream (School of Art and Gallery).
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