Afreximbank has signed a $100-million Trade Finance Facilitation Facility (AFTRAF) agreement with National Bank of Malawi (NBM) Plc.
This is the largest AFTRAF deal in Malawi to date. The agreement aims to enhance NBM’s capacity to finance trade transactions, especially in manufacturing, energy, and agriculture.
The AFTRAF facility will allow NBM to issue letters of credit confirmed by Afreximbank. This will address the challenge of a shortage of confirming bank lines.
It will also support the import of critical goods like fuel, pharmaceuticals, fertilizers, and manufacturing inputs.
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Support for Strategic Sectors
The signing ceremony took place at Afreximbank’s headquarters in Cairo on September 24, 2024. Afreximbank’s Executive Vice President, Global Trade Bank Africa, Haytham ElMaayergi, and NBM’s CEO, Harold Jiya, signed the agreement.
“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,” said ElMaayergi.
The partnership is expected to boost trade across the southern African region. ElMaayergi added, “This collaboration will sustain supply chains and enhance Malawi’s foreign exchange earning capacity.”
A Game Changer for Malawian Businesses
NBM’s CEO, Harold Jiya, hailed the agreement as a breakthrough for the bank and the people of Malawi. “This partnership will allow us to provide more financing solutions, especially for businesses engaged in international trade,” he said.
He also emphasized the positive impact on businesses of all sizes. “The Afreximbank credit line will help reduce the risks and costs associated with cross-border transactions, giving businesses access to the tools they need to thrive.”
NBM Plc is currently transitioning into a regional bank and will continue working with Afreximbank to expand its footprint in the region.