Export Development Fund (EDF) and the African Export-Import Bank (Afreximbank) on Saturday signed an agreement for a $5 million Regional Transit Guarantee Facility aimed at facilitating intra-African trade by removing multiple layers of customs transit bonds across countries in the region.
Outgoing EDF Managing Director Gerald Nsomba signed the facility on behalf of EDF while Afreximbank Managing Director for Intra-African Trade Initiative Kanayo Awani signed on behalf of the bank during the 2021 Intra-Africa Trade Fair which ended in Durban, South Africa, on Sunday.
Nsomba said the facility seeks to eliminate time-consuming border clearance paperwork procedures faced by Malawian exporting merchants.
“The scheme will resolve challenges faced on several export transactions occasioned by delays and escalating costs of multiple transit bonds which have impacted the country’s export competitiveness,” Nsomba said.
Last Wednesday, South Sudan Minister of Trade and Industry Kuol Athian expressed worry over delays by Malawi to deliver consignments under the Malawi-South Sudan deal.
The two countries entered into a multimillion dollar deal early this year as part of operationalising the Africa Continental Free Trade Area.
But Secretary for Trade Christina Zakeyu told Athian that issues of delayed shipment would be a thing of the past following the facility with Afreximbank.