IN a significant boost to trade financing in Malawi, the African Export-Import Bank (Afreximbank) has signed a landmark $100 million Trade Finance Facilitation Facility (AFTRAF) agreement with the National Bank of Malawi (NBM). The deal, the largest of its kind in Malawi, aims to enhance NBM’s ability to finance trade in key sectors such as manufacturing, energy, and agriculture.
The $100 million AFTRAF facility will enable NBM to issue letters of credit backed by Afreximbank, addressing the country’s current shortage of confirming bank lines. This will facilitate the import of essential goods, including manufacturing components, fuel, pharmaceuticals, and fertilisers, which are critical for Malawi’s economy.
The agreement was signed on September 24 at Afreximbank’s headquarters in Cairo by Haytham ElMaayergi, Afreximbank’s Executive Vice President for Global Trade, and Harold Jiya, Chief Executive Officer of NBM.
ElMaayergi highlighted the positive impact of the facility, stating, ‘This partnership with National Bank of Malawi will strengthen strategic sectors like manufacturing, agriculture, and energy by ensuring supply chains remain intact and enhancing the country’s capacity to generate value-added exports.’ He added that the collaboration is set to improve both intra-African and global trade by supporting NBM’s expanding regional operations.
NBM Plc CEO Harold Jiya echoed these sentiments, emphasising the importance of the credit line in fostering international trade for Malawian businesses. ‘This partnership is a major leap forward for us and the nation. It will allow us to offer more affordable and secure financing options for businesses involved in cross-border trade, from large corporations to small enterprises.’
As an Afreximbank Trade Finance Intermediary, NBM Plc is looking to position itself as a regional banking leader. This partnership marks a critical step in that transformation, as it aims to reduce risks and costs for businesses engaging in international trade across southern Africa.
