The African Export-Import Bank (Afreximbank) has signed a significant US$100 million Trade Finance Facilitation Facility (AFTRAF) agreement with the National Bank of Malawi (NBM) Plc, marking the largest AFTRAF facility ever extended by the bank in Malawi. This strategic partnership is set to bolster trade financing in Malawi, particularly benefiting key sectors such as manufacturing, energy, and agriculture.
The agreement, signed at Afreximbank’s headquarters in Cairo, aims to enhance NBM Plc’s capacity to finance trade transactions, providing critical support for the importation of essential goods, including fuel, pharmaceuticals, and fertilisers. It will also enable NBM Plc to issue letters of credit confirmed by Afreximbank, addressing challenges posed by a shortage of confirming bank lines.
Strengthening Strategic Sectors
During the signing ceremony, Mr. Haytham ElMaayergi, Executive Vice President of Global Trade Bank Africa at Afreximbank, highlighted the impact of the facility on Malawi’s strategic sectors. “Our support to National Bank of Malawi through the Afreximbank Trade Facilitation ‘AFTRAF’ program will significantly enhance Malawi’s manufacturing, agriculture, and energy sectors by empowering them to import vital inputs and components,” he said. Mr. ElMaayergi also noted that the partnership would help sustain supply chains and boost the country’s foreign exchange earning capacity.
Expanding Regional Trade
The collaboration is expected to drive intra- and extra-African trade, particularly as NBM Plc expands its operations in the southern African region. The facility will provide financing products and capacity-building support to corporate clients, facilitating trade and economic growth.
Mr. Harold Jiya, CEO of NBM Plc, expressed optimism about the partnership’s potential to transform Malawi’s trade landscape. “This partnership will allow us to offer more financing solutions, especially for businesses engaged in international trade,” Jiya stated. He emphasised that the credit line would make cross-border transactions more accessible and affordable, benefiting businesses of all sizes.
About Afreximbank
Afreximbank is a Pan-African multilateral financial institution dedicated to financing and promoting intra- and extra-African trade. Over the past 30 years, the bank has developed innovative financing solutions to support Africa’s trade sector, boosting industrialisation and economic growth across the continent. With a focus on implementing the African Continental Free Trade Agreement (AfCFTA), Afreximbank has been instrumental in setting up the Pan-African Payment and Settlement System (PAPSS) and a $10 billion Adjustment Fund to support AfCFTA participants.
For more information, visit: www.afreximbank.com
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About National Bank of Malawi
Established in 1971, National Bank of Malawi plc (NBM Plc) is the largest bank in Malawi, listed on the Malawi Stock Exchange since 2000. The bank operates 32 service centers, 135 ATMs, and 1535 FastServe agents across the country. NBM Plc owns six subsidiaries, including NBM Development Bank and Akiba Commercial Bank in Tanzania, making it a key player in Malawi’s financial sector.
This landmark agreement between Afreximbank and NBM Plc is poised to have a transformative impact on Malawi’s trade and economic development, reinforcing the country’s position in regional and global markets.
For more inform For more information, visit: www.natbankmw.com
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Source: Afreximbank
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