Afreximbank, Malawi Bank Sign $15m Loan Facility To Support Manufacturing Sector
By Sunday Etuka, Abuja
African Export-Import Bank (Afreximbank) says it has signed an agreement to provide FDH Bank Plc Malawi with a $15 million amortizing term loan facility to support the manufacturing sector,
exporters and importers in Malawi.
The bank in a statement on Thursday said, under the terms of the agreement, signed during the just-concluded Afreximbank Annual Meetings (AAM2024) in Nassau, capital city of The Bahamas, FDH Bank will deploy the proceeds of the facility to the financing of trade transactions of its clients involved in manufacturing, exports and imports.
Mr. Haytham El Maayergi, Executive Vice President of Global Trade Bank signed the agreement on behalf of Afreximbank while Mr George Chitera, the Deputy Managing Director for FDH Bank Plc, signed the facility agreement on behalf of FDH Bank Plc. Malawi.
In comments on the agreement, Mr. El Maayergi said: “This facility will support the export of value-added commodities and the manufacturing capacity of Malawi and is consistent with our strategy of financing exports which also enhances the foreign exchange earning capacity of countries.”
Mr. El Maayergi added that, through its intermediated lending approach, the facility would help in bridging the financing gap in the continent and would also strengthen the capacity of the financial intermediaries to support corporates with financing products and capacity building.
On his part, Mr. Chitera noted: “As a Bank, we believe in our ability and potential to grow businesses and that is why we leverage on our strategic partnerships such as with Afreximbank and other like-minded institutions to increase our capacity to create bespoke financial solutions which will reshape and drive Intra and Extra African Trade. This US$15 million Medium Term loan facility is one of the major steps towards that goal.”
The facility provides offshore funding, required for the high importation needs of various critical sectors within the economy.
Hosted by the government of the Bahamas, AAM2024, which was combined with the third AfriCaribbean Trade and Investment Forum (ACTIF2024), was held in Nassau, The Bahamas from 12 June to 15 June.
