BLANTYRE-(MaraviPost)-The Arab Bank for Economic Development in Africa (BADEA) board has approved a US$50million Fuel financing revolving facility for National Oil Company of Malawi (NOCMA).
NOCMA will use the first tranche of the amount towards immediate procurement of fuel product which include replenishment of the strategic fuel reserves stocks once all the relevant paperwork is finalized.
The fuel financing facility agreement is between NOCMA and BADEA with Malawi Government as a guarantor through the Ministry of Finance.
Through this, NOCMA will be fully responsible in directly servicing the facility.
It is said that the move will now allow NOCMA to channel some of the financing sourced from local banks towards addressing the current fuel shortages in the Country.
Further, approximately US$28million from the amount will go directly towards daily fuel requirements, as the NOCMA works to address the fuel supply shortages recently experienced in the Country.
According to NOCMA, urrently, some operations towards restoring the fuel supply situation in the country are already underway.
The company further believes that the situation of fuel scarcity will now be a story of the past as high volumes of fuel product are now entering the country on a daily basis, a situation which has seen reduced queues at filling stations across the country.
