Afreximbank Signs US$15M Loan with FDH Bank Plc. Malawi to Boost Manufacturing and Trade

The loan facility, which provides offshore funding, is intended to meet the high importation needs of critical sectors within Malawi's economy, contributing to sustainable economic growth and stability.

During the Afreximbank Annual Meetings (AAM2024) in Nassau, The Bahamas, the African Export-Import Bank (Afreximbank) has finalized a significant agreement with FDH Bank Plc. Malawi, providing a US$15-million amortizing term loan facility aimed at bolstering Malawi’s manufacturing sector and supporting exporters and importers.

Under the terms of the agreement, FDH Bank will utilize the loan to finance trade transactions for its clients involved in manufacturing, exports, and imports, thereby enhancing economic activities crucial to Malawi’s development.

Mr. Haytham El Maayergi, Executive Vice President of Global Trade Bank at Afreximbank, signed the agreement on behalf of the bank, emphasizing its strategic importance in promoting value-added commodity exports and strengthening Malawi's manufacturing capacity. He highlighted that the facility aligns with Afreximbank's broader strategy of financing exports to boost foreign exchange earnings across member countries.

Speaking further on the agreement, Mr. El Maayergi underscored that Afreximbank's intermediated lending approach will help bridge financial gaps in Africa while enhancing the capabilities of financial intermediaries to offer tailored financing solutions and capacity building support to corporates.

On behalf of FDH Bank Plc. Malawi, Mr. George Chitera, Deputy Managing Director, expressed confidence in the bank’s ability to foster business growth through strategic partnerships with institutions like Afreximbank. He described the US$15 million loan facility as a pivotal step towards enhancing intra and extra African trade, positioning FDH Bank to deliver customized financial solutions that drive economic transformation.

The loan facility, which provides offshore funding, is intended to meet the high importation needs of critical sectors within Malawi's economy, contributing to sustainable economic growth and stability.

The Afreximbank Annual Meetings 2024, held in collaboration with the AfriCaribbean Trade and Investment Forum (ACTIF2024), were hosted by the government of The Bahamas in Nassau from June 12 to June 15. The event served as a platform to discuss and strengthen trade and investment ties between Africa and the Caribbean, reinforcing partnerships for regional economic advancement.