African Export-Import Bank (Afreximbank) has extended a $100 million line of credit to NBS Bank Plc Malawi through its Afreximbank Trade Facilitation Programme (AFTRAF), representing one of the largest such facilities granted to a Malawian financial institution.
The agreement, finalized during the recent Intra-African Trade Fair 2025, is designed to bolster NBS Bank’s trade finance capabilities and enable the institution to meet increasing demand from its commercial clients. The facility has been specifically structured to support the importation of critical commodities into Malawi, including fertilizer, pharmaceuticals, and fuel.
Strategic Partnership for Trade Growth
Haytham El Maayergi, Executive Vice President of Global Trade Bank at Afreximbank, emphasized the strategic significance of the partnership during the signing ceremony. “This $100 million facility demonstrates Afreximbank’s commitment to supporting Malawi’s trade aspirations as one of its member states,” he said, noting that it also reflects the longstanding relationship between Afreximbank and the NBS/NICO group.
The agreement was signed by El Maayergi and Temwani Simwaka, CEO of NBS Bank, marking a significant expansion of the bank’s trade finance operations.
El Maayergi expressed confidence that the facility would enable NBS Bank to support growing customer demand for trade services, particularly for strategic commodities essential to Malawi’s agricultural productivity, healthcare system, and economic stability. Importantly, the facility also provides NBS Bank with a confirmation line from within Africa, reducing reliance on external financial intermediaries.
Strengthening Africa’s Trade Infrastructure
The AFTRAF programme serves as a key mechanism for enhancing confidence in international trade settlements and improving correspondent banking relationships across the continent. By providing trade confirmation services, guarantees, and irrevocable reimbursement undertakings, the programme addresses critical gaps in Africa’s trade infrastructure while supporting both intra-African trade and the importation of essential goods.
Continental Context
The timing of the agreement is significant, coinciding with IATF2025, which concluded in September as one of the most successful editions of the continental trade exposition. The seven-day event attracted over 112,000 visitors from 132 countries and generated $48.3 billion in trade and investment deals, demonstrating robust appetite for African commerce.
The credit facility aligns with Afreximbank’s mandate of promoting both intra-African and extra-African trade, positioning regional financial institutions to play a more active role in facilitating cross-border commerce as the African Continental Free Trade Area continues its implementation across the continent.
