The African Export- Import Bank (Afreximbank) has said it will support the Memorandum of Understanding (MoU) on trade collaboration between the governments of Malawi and South Sudan.
Afreximbank is expected to provide financial backing and payment instruments to facilitate trade of agricultural commodities and essential consumer goods between the two nations.
In a statement, Afreximbank President Benedict Orama said the partnership represents a major step in the implementation of the African Continental Free Trade Agreement (AfCFTA).
The partnership, according to Afreximbank, demonstrates the value-creating potential of export development and regional integration while also illustrating Malawi’s ability to diversify its foreign exchange earnings.
“This is a historic moment for Malawi and South Sudan that showcases the promise of the AfCFTA in action. By taking their first ever steps into trade collaboration, both countries will unlock new channels for inclusive wealth creation and secure high-quality jobs for their people,” Orama said.
Trade Minister Sosten Gwengwe Sunday hailed Afreximbank for the move which, he said, would help payment modalities in the deal.
“I commend Afreximbank bank and our own Export Development Fund for derisking the payment modalities of the Malawi South Sudan financial transactions. Without Afreximbank, the move would have been very risky for private sector,” Gwengwe said.
Malawi on June 10 this year signed a trade MoU with South Sudan. The five-year agreement will allow Malawi to export grain and other agricultural products to South Sudan.
According to Afrieximbank, currently, Malawi has a surplus of maize totalling 1.2 million metric tonnes which, if exported, would generate additional jobs for Malawian workers and benefit consumers in South Sudan.
According to the agreement, South Sudan would be able to supply commodities such as petroleum products and bitumen to Malawi, supporting development and wealth creation in the South Sudanese economy.