The facility is expected to support about USD 40 million of trade over the next three years and promote intra-Africa trade in line with the aspirations of the Africa Continental Free Trade Area.
ABIDJAN, Ivory Coast, December 19, 2023/ — The Board of Directors of the African Development Bank Group (www.AfDB.org) on Monday, 4 December 2023 approved a USD 7 million Trade Finance Transaction Guarantee facility for NBS bank in Malawi to support small businesses.
This facility will provide 100% guarantee to international confirming banks (CBs) for the non-payment risk taken on NBS’s trade finance transactions conducted on behalf SMEs, local corporates, and women-led businesses in Malawi. It will enable NBS to support the importation of fertilizer, medical supplies, and other strategic commodities. The facility is expected to support about USD 40 million of trade over the next three years and promote intra-Africa trade in line with the aspirations of the Africa Continental Free Trade Area (AfCFTA).
AfDB’s Malawi country manager Macmillan Anyanwu stressed the importance of unlocking trade financing to support and scale up trade flows for a land-linked low-income economy like Malawi. “The facility is expected to promote the integration of Malawi’s economy into regional and global trade networks which are critical for the country’s growth,” he said.
Dr. Kwanele Batshele Ngwenya, NBS’s CEO also said, “NBS Bank has always been passionate about Malawi’s economic development, and I am pleased with this milestone because the transaction underscores the commitment of NBS Bank and AfDB to the advancement of trade in Africa. Additionally, on our part, we are committed to an ongoing cordial relationship with AfDB for the benefit of our clients and Malawi at large.”
Distributed by APO Group on behalf of African Development Bank Group (AfDB).
