In a major development for Malawi's trade sector, the National Bank of Malawi (NBM) Plc has secured a landmark $100 million Trade Finance Facilitation Facility (AFTRAF) from the African Export-Import Bank (Afreximbank). The deal, the largest of its kind for Malawi, is set to significantly enhance NBM Plc’s capacity to finance trade in key sectors such as manufacturing, energy, and agriculture.
The facility will empower NBM Plc to issue Afreximbank-confirmed letters of credit, addressing challenges stemming from limited access to confirming bank lines. It will also facilitate the importation of essential goods, including industrial materials, fuel, pharmaceuticals, and fertilisers, which are critical to Malawi's economic stability.
The agreement was signed on September 24, 2024, at Afreximbank’s Cairo headquarters by Haytham ElMaayergi, Afreximbank’s Executive Vice President for Global Trade, and Harold Jiya, CEO of NBM Plc. This partnership marks a significant step in strengthening trade finance and supporting Malawi’s economic growth.
Commenting on the signing during at ceremony, Mr. ElMaayergi said: “Our support to National Bank of Malawi through the Afreximbank Trade Facilitation “AFTRAF” programme will have a significant impact on Malawi’s strategic sectors including manufacturing, agriculture and energy, by empowering them to import inputs and components to generate value-added exports.” He added, “this partnership seeks to sustain supply chains of these sectors to enhance the foreign exchange earning capacity of the country.”
Mr. El Maayergi added that the collaboration is expected to boost intra- and extra-African trade across NBM’s expanding geographical footprint in the southern African region by supporting corporates with financing products as well as capacity building.
On his part, National Bank of Malawi plc CEO, Mr Harold Jiya said the credit line is a huge step forward for the Bank and, more importantly, for the people of Malawi.
He explained: “This partnership will allow us to provide more financing solutions, especially for businesses engaged in international trade. As a Bank, we are committed to making international trade easier and more affordable for our customers. The Afreximbank credit line will help reduce the risks and costs associated with cross-border transactions, giving businesses of all sizes—from large corporations to small enterprises—access to the tools they need to thrive.”
NBM plc is an Afreximbank Trade Finance Intermediary, which allows it to collaborate with Afreximbank on transactions. It is currently in the process of reprofiling itself into a regional bank.
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