The Board of Directors of the African Development Bank Group on Monday, 4 December 2023 approved a USD 7 million Trade Finance Transaction Guarantee facility for NBS bank in Malawi to support small businesses.
The facility is expected to promote the integration of Malawi’s economy into regional and global trade networks which are critical for the country’s growth
This facility will provide a 100% guarantee to international confirming banks (CBs) for the non-payment risk taken on NBS’s trade finance transactions conducted on behalf of SMEs, local corporates, and women-led businesses in Malawi. It will enable NBS to support the importation of fertilizer, medical supplies, and other strategic commodities.
The facility is expected to support about USD 40 million in trade over the next three years and promote intra-Africa trade in line with the aspirations of the Africa Continental Free Trade Area (AfCFTA).
AfDB’s Malawi country manager Macmillan Anyanwu stressed the importance of unlocking trade financing to support and scale up trade flows for a land-linked low-income economy like Malawi. “The facility is expected to promote the integration of Malawi’s economy into regional and global trade networks which are critical for the country’s growth,” he said.
Dr. Kwanele Batshele Ngwenya, NBS’s CEO also said, “NBS Bank has always been passionate about Malawi’s economic development, and I am pleased with this milestone because the transaction underscores the commitment of NBS Bank and AfDB to the advancement of trade in Africa. Additionally, on our part, we are committed to an ongoing cordial relationship with AfDB for the benefit of our clients and Malawi at large.”
