Category Archives: Business

The Maravi Post is a leading source for reliable Business news and analysis on Business. Top African Business like  Dangote  Group in Nigeria, Mulli Brothers in Malawi

The 10 Greatest Living Business Leaders In Africa Today
  • Sheikh Mohammed Al-Amoudi, Ethiopian.
  • Raymond Ackerman, South African.
  • Aliko Dangote, Nigerian.
  • Manu Chandaria, Kenyan.
  • Onsi Sawiris, Egyptian.
  • Brian Joffe, South African.
  • Strive Masiyiwa, Zimbabwean.
  • Wale Tinubu, Nigerian.
Agriculture, Malawi

How to restore Malawi’s food basket prowess

Maravi Post Author

By Twink Jones Gadama

The Malawi government can take several steps to ensure food security within the country. The columnist looks at several factors that can help the country say goodbye to hunger.

Improve agricultural practices

The government can provide training and support to farmers, promoting modern and sustainable farming techniques to increase crop yields. This could include educating farmers on better irrigation methods, effective fertilization, pest control, and crop rotation.

Enhance infrastructure

Developing rural infrastructure is crucial for efficient agricultural production. The government can invest in building and maintaining roads, storage facilities, and irrigation systems. Accessible infrastructure enables farmers to transport their produce to markets and store surplus crops for future consumption or sale.

Promote diversification

Encouraging farmers to cultivate diverse crops can reduce reliance on a single staple crop and enhance overall food security. Crop diversity helps mitigate the risks associated with climate change, pests, and diseases that can devastate a single crop. The government can provide incentives, subsidies, and technical assistance to promote crop diversification.

Strengthen market linkages

Enabling farmers to access local and regional markets effectively can improve their income and incentivize production. The government can establish market information systems, facilitate fair market competition, and support the development of cooperatives or farmer organizations.

Implement social safety nets

Establishing social protection programs, such as cash transfers or subsidized food schemes, can directly alleviate immediate food needs for vulnerable populations. These programs offer temporary relief during difficult times and ensure basic nutritional requirements are met.

Invest in research and development

The government can allocate resources towards agricultural research and development to improve seed varieties, develop drought-resistant crops, and enhance farm productivity. This investment will help address specific challenges faced by Malawian farmers and contribute to long-term food security.

By implementing these measures and adopting a holistic approach involving multiple sectors, the Malawi government can work towards achieving food security and reducing hunger in the country.

Feedback: Jonesgadama@gmail.com

Business

Tigo wins Ookla® Award as the Fastest Mobile Network in Tanzania

Maravi Post Reporter

The Ookla Award is an elite designation reserved for fixed and mobile providers in a market, based on consumer-initiated tests and background scans from speed test applications

DAR ES SALAAM, Tanzania, December 11, 2023/ — Tanzania’s digital lifestyle telecommunication company, Tigo (www.Tigo.co.tz), which is a part of the Axian Telecom Group has won the prestigious Ookla® Speedtest Award™ as the Fastest Mobile Network in Tanzania for the year 2023.

The Ookla Award is an elite designation reserved for fixed and mobile providers in a market, based on consumer-initiated tests and background scans from speed test applications.

Tigo has scooped the coveted award against the backdrop of the company’s robust investment in its network modernization and upgrade across the country.

Speaking about the award, Tigo Chief Executive Officer, Kamal Okba said: “We are excited and thrilled to win this much-sought-after award. The Ookla award is a clear demonstration that Tigo’s heavy investment in network modernization, new sites rollout and technology upgrade are paying off”.

Since 2022, Tigo committed to invest over TZS 1 trillion within 5 years to improve and modernize its network infrastructure, an investment that has significantly enhanced the telecoms company customer’s digital experience hence led to Tigo earning local and international accolades, including the latest Ookla Speedtest award.

The Ookla Award presented to Tigo, recognize Tigo’s ‘network quality and reliability’ following its huge investment in network upgrade, a fact that was underscored by Okba who said: “We are currently executing an extensive modernization project to offer state-of-the-art and best in-class technology in each site including rural areas across Tanzania Mainland and Zanzibar to improve experience, competitiveness and accelerate transformation of the digital economy”.

Tigo’s mammoth investment has enabled it to launch the fastest (1Gbps) 5G technology in Tanzania in addition to upgrading all sites to 4G technology across all regions in Tanzania mainland and Zanzibar.

“After conducting an in-depth analysis of consumer-initiated tests taken with Speedtest, Tigo has been named the Fastest Mobile Network in Tanzania by Ookla’s Speedtest Awards,” said Stephen Bye, President, and CEO of Ookla, a division of Ziff Davis.

“This award is given to mobile network operators that demonstrate exceptional speed and performance in comparison to other major mobile networks in the market for Q2-Q3 2023. We are thrilled to acknowledge Tigo Tanzania for this achievement, which is the result of their unwavering focus on delivering a superior network experience to their customers.” attributed to Stephen Bye, President and CEO of Ookla, a division of Ziff Davis”

The Fastest Mobile Network in Tanzania award further attests to Tigo’s ambition to support the digital and financial transformation for our 18 million customers. Additionally, the deployment of cutting-edge technologies will benefit consumers and businesses across the country.


Distributed by APO Group on behalf of Tigo Tanzania.

Business

Dangote Refinery Receives Its Maiden Crude Cargo

MaraviPost

A major step towards boosting Nigeria’s domestic refining capacity and attaining energy security (self-sufficiency)


LAGOS, Nigeria, December 8, 2023/ — In a major step towards boosting Nigeria’s domestic refining capacity and attaining energy security (self-sufficiency), Dangote (www.Dangote.com) Petroleum Refinery and Petrochemicals plant has purchased 1 million barrels of Agbami crude grade from Shell International Trading and Shipping Company Limited (STASCO), one of the largest trading companies in Nigeria as well as globally, trading over 8 million barrels of crude oil per day.

Aliko Dangote GCON (born 10 April 1957)
Aliko Dangote GCON (born 10 April 1957) is a Nigerian businessman, investor, and owner of the Dangote Group, which has interests in commodities in Nigeria and other African countries. As of November 2019, he had an estimated net worth of US$8.9 billion

The STASCO cargo contained 1 million barrels from Agbami and sailed to Dangote Refinery’s Single Point Mooring (SPM) where it was discharged into the refinery’s crude oil tanks.

The maiden 1 million barrels, which represent the first phase of the 6 million barrels of crude oil to be supplied to Dangote Petroleum Refinery by a range of suppliers, should sustain the initial 350,000 barrels per day to be processed by the facility. The next four cargoes will be supplied by the NNPC in two to three weeks and the final of the six cargoes will be supplied by ExxonMobil.

This supply will facilitate the initial run of the refinery as well as kick-start the production of diesel, aviation fuel, and LPG before subsequently progressing to the production of Premium Motor Spirit (PMS).

This latest development will play a pivotal role in alleviating the fuel supply challenges faced by Nigeria as well as the West African countries.

Designed for 100% Nigerian crude with the flexibility to process other crudes, the 650,000 barrels per day Dangote Petroleum Refinery can process most African crude grades as well as Middle Eastern Arab Light and even US Light tight oil as well as crude from other countries.

Dangote Petroleum Refinery can meet 100% of the Nigeria’s requirement of all refined products, gasoline, diesel, kerosene, and aviation jet, and also have surplus of each of these products for export.

The refinery was built to take crude through its two SPMs located 25 kilometres from the shore and to discharge petroleum products through three separate SPMs. In addition, the refinery has the capacity to load 2,900 trucks a day at its truck loading gantries.

Dangote Refinery has a self-sufficient marine facility with the ability to handle the largest vessel globally available. In addition, all products from the refinery will conform to Euro V specifications.

The refinery is designed to comply with US EPA, European emission norms, and Department of Petroleum Resources (DPR) emission/effluent norms as well as African Refiners and Distribution Association (ARDA) standards.

President of Dangote Group, Mr. Aliko Dangote stated: “We are delighted to have reached this significant milestone. This is an important achievement for our country as it demonstrates our ability to develop and deliver large capital projects. Our focus over the coming months is to ramp up the refinery to its full capacity. I look forward to the next significant milestone when we deliver the first batch of products to the Nigerian market.”

Country Chairman of Shell Companies in Nigeria, Mr. Osagie Okunbor stated: “We welcome the startup of a refinery that is designed to produce gasoline, diesel, and low-sulphur fuels for Nigeria and across West Africa and are happy to be enabling it.”

Distributed by APO Group on behalf of Dangote Group.

AMA, Business

South Africa: African Development Bank approves $1 billion guarantee from the United Kingdom to support SA’s Just Energy Transition

MaraviPost
Kusile power station in South Africa

ABIDJAN, Côte d’Ivoire, 11 December 2023 -/African Media Agency(AMA)/-The Board of Directors of the African Development Bank Group has approved a $1 billion guarantee program in collaboration with the UK Foreign Commonwealth and Development Office (FCDO), which will allow the Bank to increase its lending capacity in support of South Africa’s Just Energy Transition (JET).

Developed in close collaboration with the government of the Republic of South Africa, the program will support projects aligned with South Africa’s JET investment plan, such as transmission and grid-balancing storage, renewable energy generation, energy efficiency, rehabilitation of municipal electricity delivery, green hydrogen, new electric vehicles. It also includes projects addressing the “just” dimension, notably in the Province of Mpumalanga, in the north-eastern part of the country, bordering Swaziland and Mozambique.

The approval, coming during COP28, where ramping-up climate finance is an issue, is timely and topical. African Development Bank Vice President for Power, Energy, Climate and Green Growth, Dr. Kevin Kariuki observed: “this is another innovative operation that reaffirms AfDB’s leadership in crafting financial solutions to increase access to climate finance for Africa’s low carbon development and net zero ambitions.”

Melinda Bohannon, Foreign Commonwealth and Development Office Director General of Humanitarian and Development stated,” FCDO remains committed to the Just Energy Transition Partnership with South Africa, which supports green growth and jobs, improves energy security, and helps South Africa achieve its carbon reduction ambitions as set out in its National Determined Contribution.  This guarantee will unlock funds for projects within the remit of South Africa’s recently released Just Energy Transition implementation plan. This comes alongside the recently significantly increased grant offer from the International Partners Group, and we are using some of those grants to help develop an investment project pipeline”.

Mmakgoshi Lekhethe, Deputy-Director General for Asset and Liability Management in South Africa’s National Treasury commented, “We are pleased with the approval by the AfDB Board of the guarantee framework that will increase South Africa’s access to funding from the Bank by $1 billion. This marks an important partnership between our government, the UK and AfDB to enhance our ability to implement South Africa’s just energy transition in a way that is just and socially responsible. We look forward to working closely with the AfDB on the preparation and financing of a pipeline of programs and projects under our just transition priority areas, including those identified in the JET Implementation Plan. As a development bank with vast experience in just transition in the continent, the AfDB is an ideal partner for us on this important initiative”.

Max Ndiaye, Director of Syndications, Co-financing and Client Solutions, noted previous collaboration between the Bank and FCDO, and applauded this transaction as further demonstration of the Bank’s continued efforts to heed the G20 recommendations on capital adequacy that call for increased collaboration and additional shareholder support for the balance sheet optimization of MDBs.

“By enabling the Bank to increase its lending capacity, this landmark guarantee agreement will greatly support South Africa’s Just Energy Transition,” noted African Development Bank Director General for Southern Africa, Leila Mokaddem. “The African Development Bank remains committed to accompanying South Africa on this important journey,” she added.

Distributed by African Media Agency (AMA) on behalf of African Development Bank.

The post South Africa: African Development Bank approves $1 billion guarantee from the United Kingdom to support SA’s Just Energy Transition appeared first on African Media Agency.

Source : African Media Agency (AMA)

Business

TNM moves to improve doctors’ delivery

Maravi Post Reporter

BLANTYRE-(MaraviPost)-Malawi’s pioneer mobile network and ICT services provider, TNM Plc, has contributed MK6 million to Society of Medical Doctors (SMD) towards this year’s annual lakeshore conference.

The recent conference was held under the theme: “The Doctor’s Role on Disaster Preparedness in Malawi, ” at Sunbird Nkopola in Mangochi.

Madalitso Jonazi, TNM’s Head of Brand and Marketing said that the contribution underscores the telco’s appreciation of doctors’ value in shaping the wellbeing of communities.

“TNM puts keen interest in issues that bind our communities together and uphold wellness of Malawians. Doctors are integral in the provision of excellent healthcare services that cut across every individual in the country, therefore, we saw it befitting to support the conference,” said Jonazi.

He said that through the donation, TNM highlights its commitment towards sustaining the positive contribution of doctors in the development of the country.

“Doctors play a critical role in the overall growth of Malawi. They are constantly involved in scientific and biological research to find solutions to crucial medical health issues that if left unattended deter developmental progress,” he said.

He said the conference agenda adds great value towards preparedness of disasters that have been rampant for the past recent years.

“We are all aware of the havoc that disasters have caused in the country. Disasters challenge the delivery of medical care services and practitioners are always the last hope for casualties. Therefore, we believe that the conference will provide great insights on steady preparations in times of disasters,” added Jonazi.

Secretary General for SMD, Dr. Parth Patel said that expressed optimism that the conference will provide a good platform for medical doctors to share new measures that could reduce impact of disasters in the country.

“Over the last couple of years Malawi have had occurrences of disasters that affected people resulting in loss of lives and properties. We believe that this conference will stimulates ideas from doctors to get ourselves prepared for disasters,” said Patel.

Expressing his gratitude to TNM, Patel said that the collaboration will help the country to have effective medical measures support provision of healthcare services during disaster.

“We are very grateful to TNM for this partnership which will help the conference achieve its intended purposes. To have such amount of money in this kind of economy is not a simple thing, the money will add value to the conference,” he said.

The conference will bring together 100 delegates comprising of Medical Doctors, Key Policy Makers, Researchers, and Academia from Government and Private Sector.

The Society of Medical Doctors (SMD) exists with the aim of providing a vehicle through which medical doctors can support the government and other players in their efforts to improve the delivery of health care in Malawi.

The society provides the space in which doctors can lobby and advocate for better health care systems on behalf of Malawians, through Continuous Professional Development (CPD) and annual conferences.

Agriculture

CAT impressed with local farmers’ knowledge acquisition on value-chain cropping

Maravi Post Reporter

LILONGWE-(MaraviPost)-The Center for Agriculture Transformation (CAT) has expressed satisfaction with quick acquisition of knowledge on valued-chain cropping.

CAT is therefore impressed with hands-on training lead farmers are imparting communities on four value-chain crops including soybean, groundnuts, sunflower, and cassava ahead of the 2023/2024 growing season for maximum income generation.

According to CAT, the four valued-chain crops are beneficial for local farmers’ income and consumption amid Malawi’s food crisis.

This was observed during local farmers’ hands-on training event which took place last week Wednesday at Madzo Cooperative at Madisi, Dowa district.

CAT with its partner Going Green has intensified extension services to local farmers on value-chain crops in Kasungu, Dowa, Mchinji, Lilongwe, Salima and Nkhotakhota districts

Speaking during the event, the Director of Science and Technology at CAT, Geoffrey Kananji was expressed with lead farmers approach towards skills delivery on value-chain cropping.

Kananji said trainings aimed at making sure that farmers are adopting modern agricultural technologies to increase their productivity in the coming growing season.

He said through their partners CAT intends to reach out to 15,000 smallholder farmers by the end of the intervention.

On her part, Going Green Managing Director, Chikondi Khonje said the organisation is working closely with smallholder farmers by providing them with sunflower seeds while providing them markets after harvest.

She said due to the high demand for sunflower her institution plans to reach more smallholder farmers to adopt modern farming technologies to maximize production.

According to a Member of Parliament (MP) for the area, Dowa Ngala Consitituency, Arthur Sungitsa said the initiative has helped his people to have diversified income for economic independent.

With financial support from Foundation for a Smoke- Free World through the Agricultural Transformation Initiative (ATI), last month, November, CAT conducted a three-day training of trainers, dubbed 2023 Agricultural Technology, Innovation and Market Access Bootcamp on four value-chained crops.

The training targeted 75 lead farmers and agricultural extension agents drawn from across the country.

Agriculture, Malawi, Opinion

Malawi’s persistence on tobacco farming: Exploring reasons amidst global anti-smoking lobby

Maravi Post Author

By Twink Jones Gadama

Tobacco cultivation and production have long been deeply ingrained in the history, economy, and culture of Malawi. Despite increasing calls for tobacco control worldwide, the country continues to rely heavily on this cash crop. Many people want to know the reasons behind Malawi’s continued attachment to tobacco, even in the face of significant anti-smoking lobbying efforts.

Historical Significance of Tobacco in Malawi

Tobacco has played a prominent role in Malawi’s history, dating back to the country’s colonial era. Introduced by British colonizers, tobacco quickly became a vital export commodity, contributing significantly to Malawi’s economy. The crop’s profitability and agronomic suitability persist to this day, explaining the deep-rooted reliance on tobacco in the country.

Economic Dependence

Malawi remains predominantly an agrarian nation, with more than 80% of the population relying on agriculture for their livelihoods. Tobacco accounts for a considerable portion of Malawi’s foreign exchange earnings, contributing significantly to its GDP and employment generation. As a result, many farmers and communities became dependent on tobacco as their primary source of income without viable alternatives readily available.

Infrastructure and Market Constraints

The tobacco industry in Malawi has established an extensive infrastructure over the years, supporting activities such as cultivation, processing, and exportation. This comprehensive network provides essential services and employment opportunities for thousands of Malawians. Shifting away from tobacco would require substantial investments in alternative crop development, infrastructure realignment, and retraining of farmers and workers, which poses significant challenges.

Limited Diversification Opportunities

Despite ongoing efforts to diversify its agricultural sector, Malawi faces several hurdles in promoting alternative crops. The process of transitioning from tobacco to other commodities is complicated and time-consuming due to factors such as market demand, accessibility to new markets, appropriate agricultural practices, and farmer education. The lack of necessary resources and knowledge often further impedes diversification efforts, leaving farmers with little choice but to continue tobacco production.

Global Trade Imbalances

Malawi’s socio-economic status is largely shaped by global trade dynamics. Developing countries like Malawi often find themselves at a disadvantage when negotiating international trade policies, which can disproportionately affect their economies. Global powers and multinational corporations, particularly those involved in the tobacco industry, hold substantial influence over trade regulations, making it difficult for developing nations like Malawi to break free from tobacco’s grip.

Political Influence

The political landscape in Malawi significantly impacts the country’s stance on tobacco. Political actors often align their interests with those of powerful stakeholders within the tobacco industry. These alliances can shape government policies and legislation related to tobacco control, undermining the promotion of alternative livelihoods and sustainable development. Political will, therefore, becomes a determining factor in the ability to prioritize health and economic diversification over tobacco production.

Cultural and Societal Factors

Tobacco has become deeply woven into the cultural fabric of Malawi, with a rich history and strong social significance. Traditional practices such as gift-giving, ceremonies, and communal activities often involve tobacco leaf offerings. These cultural ties, as well as the normalization of smoking, pose additional barriers to reducing tobacco usage. Overcoming deeply rooted cultural customs requires time, education, and community engagement.

Conclusion
While worldwide efforts to curb smoking and promote alternatives to tobacco are crucial, it is essential to recognize the multifaceted reasons why Malawi continues to cling to tobacco as a cash crop. Addressing these challenges requires a comprehensive approach, including increased investment in education, healthcare, and infrastructure, as well as the development of sustainable alternative livelihoods. Balancing the economic needs of the country with the health consequences of tobacco poses significant challenges, but with concerted efforts from local and international actors, Malawi can gradually transition to a less tobacco-dependent society.

Feedback: jonesgadama@gmail.com

Disclaimer: The views expressed in the article are those of the author not necessarily of The Maravi Post or Editor

Business

The Ripple Effect: How Borrowing and Lending Impact the Economy

Maravi Post Reporter

Borrowing and lending are fundamental activities in any economy, playing a pivotal role in its growth and stability. These financial transactions have far-reaching consequences that create a ripple effect throughout the economic landscape. In this blog, we’ll explore the various ways borrowing and lending impact the economy, from individual borrowers and lenders to the broader financial system.

Individual Borrowers

Individuals often borrow money in the form of a payday or same-day loan to deal with unexpected expenses, a mortgage to purchase a home, or a loan to start a business. The ability to access credit empowers individuals to achieve their goals and improve their financial well-being. However, it’s crucial for borrowers to manage their debt responsibly to avoid negative consequences like excessive interest payments and damaged credit scores.

Consumer Spending

When individuals borrow money, they inject additional funds into the economy, leading to increased consumer spending. This spending, in turn, drives demand for goods and services, which benefits businesses. A rise in consumer spending can lead to economic growth, as businesses expand to meet the higher demand, potentially creating more jobs and income.

Interest Rates

Borrowing and lending activities have a direct impact on interest rates. Central banks, such as the Federal Reserve in the United States, use interest rates as a tool to influence borrowing and lending behaviour. When central banks lower interest rates, borrowing becomes cheaper, encouraging individuals and businesses to take out loans. Conversely, when interest rates rise, borrowing becomes more expensive, which can slow down borrowing and spending.

Businesses and Investment

Businesses rely on borrowing to fund their operations, expand, and invest in new projects. Access to credit allows companies to innovate and remain competitive in the market. When businesses borrow and invest, it can lead to increased productivity, job creation, and economic growth.

Financial Institutions

Banks and other financial institutions play a critical role in the borrowing and lending ecosystem. They serve as intermediaries between savers (lenders) and borrowers, facilitating the flow of funds in the economy. Banks also profit from the interest rate spread—the difference between the interest rates they pay to depositors and the rates they charge borrowers.

Systemic Risks

While borrowing and lending are essential for economic growth, excessive lending or reckless lending practices can lead to systemic risks. The financial crisis of 2008, for example, was partly fuelled by the subprime mortgage lending bubble, where banks issued risky loans that ultimately led to widespread defaults and a global financial meltdown. Regulators and policymakers must monitor lending practices to prevent such crises.

Government Borrowing

Governments also engage in borrowing to finance public expenditures, such as infrastructure projects, social programs, and defence. The level of government borrowing can impact interest rates and inflation rates. Excessive government borrowing can crowd out private investment by competing for available funds, potentially leading to higher interest rates for businesses and consumers.

Inflation and Monetary Policy

Borrowing can affect inflation, which is the rate at which prices for goods and services rise over time. When borrowing and spending increase rapidly, it can lead to higher demand for goods and services, potentially causing inflation. Central banks use monetary policy tools, such as adjusting interest rates and money supply, to control inflation and maintain economic stability.

Credit Markets

The functioning of credit markets is crucial for the overall health of the economy. When credit markets are efficient and accessible, individuals and businesses can secure loans at reasonable rates, supporting economic growth. However, disruptions in credit markets, such as a credit freeze during a financial crisis, can have severe consequences, including a credit crunch that hampers economic activity.

Borrowing and lending are the lifeblood of any modern economy, with a profound impact that ripples through various sectors and levels of society. Responsible borrowing empowers individuals to achieve their goals and contributes to consumer spending, business investment, and economic growth. However, the excessive or reckless accumulation of debt can lead to systemic risks and economic instability.

Governments and central banks play a crucial role in regulating and managing borrowing and lending activities to ensure economic stability. Interest rates, inflation rates, and credit market conditions are carefully monitored and adjusted as needed to maintain a balanced and growing economy.

In the end, the borrowing and lending activities of individuals, businesses, and governments are intertwined, creating a complex web of economic relationships that shape the financial landscape. Understanding the ripple effect of these activities is essential for policymakers, economists, and individuals alike as they navigate the intricacies of the modern economy.

Business

NBM Plc in 12 Days of Christmas MK70 million donations

Maravi Post Reporter

BLANTYRE-(MaraviPost)-National Bank of Malawi (NBM) plc will for the third consecutive year celebrate this year’s Christmas with its stakeholders by donating MK70 million worth of various items to educational and health-care institutions through a corporate social investment programme dubbed ’12 days of Christmas’.

NBM plc introduced the initiative in 2021 and through it, has impacted sectors such as education and health care through donations made by the Bank  across the country.

Last year, the programme benefited institutions in Chitipa, Nkhotakota, Blantyre, Mzimba, Mangochi, Dowa, Mchinji, Salima, Ntcheu, Mwanza and Liwonde.

This year, the 12 Days of Christmas will benefit Area 25 Health Centre, Balaka Full Primary School, Mpemba Reformatory Centre, Kasungu Boma CDSS, Zomba Mental Hospital, Thyolo District Hospital, Mlangeni Police Training School, Rafik Foundations, among others.

Guided by the Bank’s Corporate Social Investment (CSI) policy, the initiative will run from Thursday, December 7 to Friday, December 22, 2023.

NBM plc Marketing and Corporate Affairs Manager Akossa Hiwa, said the items to be given include learning aids, medical equipment and others.

“At the centre of the Festive season are love, community and giving. As a Bank of the Nation, NBM plc has the country at heart and strives to reach out to those that require assistance. 12 Days of Christmas gives us the opportunity to do that as the Bank, through its Service Centres, actively contributes to the welfare of 12 different institutions each December. The items we are going to distribute are worth over K70 million,” said Hiwa.

She added that the Bank prioritizes Education and Health because they are an integral part of the Bank’s Corporate Social Initiative (CSI) Policy. 

“Our decision of initiatives to support was highly influenced by sustainability. We would like the items presented to keep on giving long after the 2023 festive season is over when learners return to schools or medical centres continue to operate in 2024,” explained Hiwa.

She said each of the 12 donations would be made by NBM plc employees led by Service Centre Managers nationwide.

Agriculture

NBS Bank acquires US$5 million IFAD loan for agribusinesses 

Maravi Post Reporter

BLANTYRE-(MaraviPost)-NBS Bank Plc has acquired a 10-year US$ 5 million loan from the International Fund for Agricultural Development (IFAD) to enable the Bank to provide specialized financial services and support to businesses involved in the agriculture sector.

IFAD is a specialized agency of the United Nations, dedicated to eradicating poverty and hunger in developing countries.

Speaking at the agribusiness conference organized in partnership with Netherlands-based Rabo Bank and IFAD, NBS Bank Deputy Chief Executive Officer Temwani Simwaka, said the Bank’s role is to make sure that farmers and other businesses access financing to grow crops, produce, and add value.

“Looking at tea and macadamia, these are long-term crops and for macadamia it takes farmers seven years to start producing a crop that they can sell. As a Bank, we partnered with Rabo Bank to give us technical advice because it is a big agricultural bank. After that, we spoke to our customers and understood their needs and with that understanding we partnered with IFAD to support us by giving the funding so that we can lend to our farmers.”

“As NBS Bank, it would have been difficult to use our money for those long periods of time hence the support from our partners, RaboBank and IFAD. Again, most of these farmers export their crop and most of their costs are in foreign currency so it just makes sense for us to get money in US Dollars,” said Simwaka.

IFAD Country Representative Bernadette Mukonyora said their portfolio in the country is currently valued at 480 million US dollars supporting various sectors and sub sectors under agriculture, and irrigation among others.

“What we are doing now is looking at the agricultural sector as a critical driver of the Malawian economy. MW2063 talks about agricultural commercialization, we want to create value in this country, we want to create prosperity, and the agricultural sector is the one that will assist the government achieve that objective.”

“Today we are launching our first non-sovereign operation with NBS Bank and under this program, we are providing a loan of 5 million US dollars. Part of this funding has come from the government of Germany, and then we as IFAD lend this money to NBS Bank which is supporting value chain development and financing to tea and macadamia farmers in this country,” said Mukonyora.

In his remarks, Tea Association of Malawi Vice Chairperson Atu Kalinga said the market has been very depressed in the past two or three years.

“Appropriate financing is a major problem, so this facility that NBS Bank is bringing in will solve the problems,” said Katunga.

NBS Bank re-established its Agribusiness unit two years ago.