Afreximbank and National Bank of Malawi Sign Landmark US$100M Trade Finance Facility

The facility will enable NBM Plc to issue letters of credit confirmed by Afreximbank, addressing the current shortage of confirming bank lines.

In a significant move to enhance trade financing in Malawi, the African Export-Import Bank (Afreximbank) has signed a historic US$100-million Trade Finance Facilitation Facility (AFTRAF) agreement with the National Bank of Malawi (NBM) Plc, the country's largest bank by assets. This deal, the largest AFTRAF facility ever provided by Afreximbank in Malawi, aims to expand NBM's capacity to finance trade transactions, particularly in the manufacturing, energy, and agriculture sectors.

The facility will enable NBM Plc to issue letters of credit confirmed by Afreximbank, addressing the current shortage of confirming bank lines. This support will facilitate the import of critical goods into Malawi, including fuel, pharmaceuticals, fertilizers, and intermediate products for the manufacturing sector.

The agreement was signed on September 24, 2024, at Afreximbank’s headquarters in Cairo. Mr. Haytham ElMaayergi, Executive Vice President of Global Trade Bank Africa at Afreximbank, and Mr. Harold Jiya, CEO of NBM Plc, signed the deal on behalf of their respective organizations.

During the signing, Mr. ElMaayergi emphasized the positive impact the facility will have on Malawi's strategic sectors, noting that it would empower these industries to import essential inputs for value-added exports. He also highlighted that this collaboration aims to bolster Malawi's foreign exchange capacity while strengthening intra- and extra-African trade.

Mr. Harold Jiya expressed that the credit line is a major step forward for both NBM and the people of Malawi. He highlighted the partnership’s potential to make international trade more accessible and affordable, reducing the risks and costs associated with cross-border transactions for businesses of all sizes.

NBM Plc, a Trade Finance Intermediary of Afreximbank, is currently transitioning into a regional bank, leveraging this new facility to expand its geographical footprint in Southern Africa.