Tag Archives: African Export-Import Banks (AfreximBank)

Business

NBM Plc secures landmark US$100 million from Afreximbank for trade finance

MaraviPost

BLANTYRE-(MaraviPost)-In a move set to significantly boost trade financing in Malawi, African Export-Import Bank (Afreximbank) has signed a landmark US$100-million Trade Finance Facilitation Facility (AFTRAF) agreement with National Bank of Malawi (NBM) Plc, the country’s largest bank by assets.

Representing the largest AFTRAF facility ever to be extended by Afreximbank in Malawi, the US$100-million AFTRAF agreement will enhance and maximize the capacity of NBM Plc to finance trade transactions of its clients in the manufacturing, energy and agriculture sectors.

Additionally, it will allow NBM Plc to issue letters of credit confirmed by Afreximbank, addressing the difficulty posed by a shortage of confirming banks lines. It will also support the importation of critical goods required by Malawi, including intermediate products for the manufacturing sector, fuel, pharmaceuticals and fertiliser.

The signing ceremony was held at Afreximbank’s headquarters in Cairo on Tuesday September 24, 2024. Haytham ElMaayergi, Executive Vice President, Global Trade Bank Africa at Afreximbank and Harold Jiya, Chief Executive Officer, NBM Plc inked the deal on behalf of their respective organisations.

Speaking after signing the agreement, ElMaayergi said: “Our support to National Bank of Malawi through the Afreximbank Trade Facilitation ‘AFTRAF’ programme will have a significant impact on Malawi’s strategic sectors including manufacturing, agriculture and energy, by empowering them to import inputs and components to generate value-added exports.”

“This partnership seeks to sustain supply chains of these sectors to enhance the foreign exchange earning capacity of the country,” he added.

ElMaayergi added that the collaboration is expected to boost intra- and extra-African trade across NBM’s expanding geographical footprint in the southern African region by supporting corporates with financing products as well as capacity building.

On his part, Jiya said the credit line is a huge step forward for the Bank and, more importantly, for the people of Malawi.

“This partnership will allow us to provide more financing solutions, especially for businesses engaged in international trade. As a Bank, we are committed to making international trade easier and more affordable for our customers.

“The Afreximbank credit line will help reduce the risks and costs associated with cross-border transactions, giving businesses of all sizes—from large corporations to small enterprises—access to the tools they need to thrive,” explained Jiya.

NBM plc is an Afreximbank Trade Finance Intermediary, which allows it to collaborate with Afreximbank on transactions. It is currently in the process of reprofiling itself into a regional bank.

Business, Malawi, Regional

FDH Bank seals US$10 million ATEX deal

Lloyd M’bwana

CAIRO-(MaraviPost)-FDH Bank Plc has become the first Southern African bank to access a US$10 million Africa Trade Exchange (ATEX) facility agreement set to reshape the agricultural landscape in the region.

ATEX is an online platform developed by the Economic Commission for Africa (ECA) and African Export-Import Banks (AfreximBank) stands as a beacon of transparent and competitive access to critical supplies like food, fertilizer, and agricultural chemicals.

FDH Bank Deputy Managing Director George Chitera sealed the deal with Afreximbank Director and Global Head, of Trade Finance Gwen Mwaba, on Saturday at the ongoing Intra-Africa trade fair in Cairo Egypt.

In reaction to the agreement, Chitera said the Bank is pleased with the facility which has come in a very timely manner.

“Malawi is an agro-based economy, and its staple food is maize cultivated between December and June. For a good harvest, there is a need for fertilizer that is not locally produced. The facility will assist the Bank in supporting its clients in the timely importation of this fertilizer for the 2023/2024 growing season.”

“The facility will also allow the Bank to increase its support to the Government of Malawi by increasing its credit facilities to importers of petroleum products.”

“Through the ATEX facility, the Bank will be able to support fuel importation by bridging the gap between the ordering and delivery of the fuel and the actual settlement of the payments to the suppliers,” said Chitera.

He added that the deal is coming in when most foreign banks are de-risking from the African markets, reducing their exposure to African economies and limiting the level of financial support to the trade within and outside the continent.

“The provision of the facility therefore asserts Afreximbank’s commitment to facilitating and promoting trade in Africa. With the increasing impact on global supply chain disruptions emanating from the challenging macroeconomic environment at the back of COVID-19, the Russia/Ukraine war, and locally, the impact of Cyclone Freddy, such financing products from Afreximbank go a long way in cushioning the supply chain disruptions that may exist due to limited resources,” he said.

According to Chitera, by participating in the ongoing fair, the Malawi Stock Exchange-listed Bank strives to become a leading financial services provider in Malawi and in the region to facilitate trade between Malawi and other countries by engaging businesses and demonstrating financial solutions that help importers and exporters to effectively do their business assisting with solutions to mitigate international trade risks and provide financing to enable growth.

On his part, Mwaba said apart from reinforcing the bond between the two parties, the deal also positions FDH Bank as the first bank in this African region to access the facility.

“This facility agreement will empower FDH Bank to effectively pool procurement for the upcoming 2023/2024 growing season, aligning with Malawi government strategy to bolster agricultural activities,” he said.

The Third Intra–African Trade Fair started on November 9 and will end on November 15 under the theme “Building Bridges for a successful AfCTA”, recognizing growth opportunities for Intra- African cross-border trade and investments.

FDH Bank was the only Malawian company sponsor of IATF.