Banking on Education: FDH Commits MWK1 Billion to Needy Students, Pledges New Hostels
FDH Bank Plc has reiterated its commitment to supporting the Malawian government’s efforts to improve living and learning conditions for college students in public universities. The bank, through its sister company FDH Properties, has offered to construct additional student hostels under a long-term lease arrangement spanning 30 to 40 years.
The pledge was announced on Thursday during a meeting between the Minister of Education, Science and Technology, Hon. Bright Msaka SC, and a delegation from the bank led by Account Relationships Manager for Corporate and Institutional Banking Ms. Trintus Mwenye, .
During the meeting, Mwenye disclosed that a new Memorandum of Understanding (MOU) has been drafted between the bank and the Higher Education Students Loans Board. Under the proposed agreement, FDH Bank will provide MK1 billion in funding over five years, with annual disbursements of MK200 million.
She clarified that this amount is a grant, not a loan, intended to support financially disadvantaged students in public universities. She also noted that the initiative is especially timely, as the recent rollout of free secondary education is expected to increase the number of students eligible for tertiary education.
Mwenye further assured that the bank would monitor the disbursement and use of the funds throughout the five-year period to ensure transparency and proper management.
The Minister commended FDH Bank for its timely and strategic support, noting that the initiatives align closely with the government’s goals of expanding access to higher education both through infrastructure development and financial support for underprivileged students.
He encouraged the bank to consider increasing the grant beyond MK1 billion to enable even more students to pursue tertiary education.
FDH Bank is also preparing another MOU aimed at providing financing options for civil servants at all levels. The draft is expected to be submitted for review within the next two weeks.
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