Trade Minister Simplex Chithyola Banda has said Malawi, just like many African countries, has rich natural resources that hold potential for increased export activity, but that the country often lacks either the financial resources or innovative financial instruments to fully exploit them to our economic advantage.
Chithyola Banda was speaking in Lilongwe at the start of a three-day export financing workshop organised by the Southern African Development Community Development Finance Cooperation and Resources and Export Development Fund.
He said the Sadc region needs sound export credit finance functions that should ably enable export trade in a safe, value adding and sustainable manner.
He observed that for this to materialise, the region needs to constantly invest in skills and capacities to complement efforts of growing and diversifying export credit finance schemes and instruments that are available within the region and beyond.
“Export credit finance is a specialised area of finance that provides financial support to exporters and importers, and it can be used not only to encourage small-scale and medium scale enterprises to go into the export business, but also to establish locally based industries geared for the export market,” he said.
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He was quick to note that export credit finance is not just about funding.
“Instead, it is about empowering businesses to reach new horizons and break boundaries. It is a catalyst for growth, innovation and progress, and it is a key enabler for businesses to access new markets and grow their international presence.
“Therefore, after we have been empowered through this training, let us all roll up our sleeves and make this happen in Malawi and the countries where we have come from,” he said.
EDF Managing Director Frederick Chanza said Malawi, like many other developing nations, is striving to integrate into the global economy.
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Chanza said Export Credit Finance serves as a lifeline for economies like Malawi, enabling them to tap into the immense potential of international trade.
According to Chanza, with limited domestic resources, the support of Export Credit Agencies becomes essential to fund ambitious projects that can boost economic growth.
“These agencies not only provide financial assistance but also alleviate the risks associated with cross-border transactions, making them a vital partner in our journey towards economic prosperity, hence this training.
“Therefore, given this background, this workshop has been carefully crafted to be practical and interactive. It is designed to empower the professionals gathered here to deepen their knowledge of export and trade credit insurance. The participants will not only gain insights into the array of products that ECAs offer, but they will also delve into their operational mechanisms,” he said.
Sadc Development Finance Resource Centre (Sadc-DFRC) Chief Executive Officer Stuart Kufeni said his organisation serves as the secretariat for the development finance institutions (DFIs) network and coordinator of its activities.
However, recognising that most DFIs had no skills to develop projects from identification, feasibility up to bankability, the DFRC has, as its major mandate under FIP, capacity building and institutional strengthening.
“In this role, in consultation with key development stakeholders, the DFRC identifies skills and institutional gaps among them and develops, annually, programmes to address these areas of deficiency.
“These include courses in corporate governance, project appraisal, risk management, project preparation, resource mobilisation and anti-money laundering,” Kufeni said.
