The African Export-Import Bank (Afreximbank) has signed a $100-million Trade Finance Facilitation Facility (AFTRAF) agreement with the National Bank of Malawi (NBM) – the largest bank in Malawi by assets.
The deal represents the largest AFTRAF facility extended by Afreximbank in Malawi, aimed at enhancing NBM’s capacity to finance trade transactions in the manufacturing, energy and agriculture sectors.
“Our support to National Bank of Malawi through the [AFTRAF] program will have a significant impact on Malawi’s strategic sectors… by empowering them to import inputs and components to generate value-added exports,” said Haytham El Maayergi, Executive Vice President, Global Trade Bank Africa at Afreximbank.
The agreement will also enable NBM to issue letters of credit confirmed by Afreximbank, addressing the shortage of confirming banks and supporting the importation of critical goods, including fuel, pharmaceuticals and fertilizer.
According to Harold Jiya, CEO of NBM: “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.”
NBM serves as an Afreximbank Trade Finance Intermediary and is transitioning into a regional bank.
