Malawi Stock Exchange-listed FDH Bank in partnership with the African Export-Import Bank (Afreximbank) are offering $10 million worth of guarantees to local corporates and small and medium enterprises (SMEs) to enhance trade.
About 150 SMEs are ready to be taken on board through the initiative, which is under Afreximbank’s Africa Trade Gateway — a platform designed as a single window for providing critical services to support and promote African trade.
Earlier this week, FDH Bank engaged local business players and SMEs in Lilongwe and Blantyre, equipping them with knowledge on effective use of the facility.
Speaking on the sidelines of a breakfast engagement in Blantyre Tuesday, FDH Bank Managing Director Noel Nkulichi said the facility brings convenience to businesses.
He said through the facility, the bank lifts the burden of the need for collateral for SMEs when accessing financing.
“We expect SMEs and the corporates to use the facility to the fullest and enjoy the economies of scale. We want to disburse $10 million worth of guarantees and we believe that we should be able to cover all the SMEs, including the corporates, and we should be able to meet their requirements,” Nkulichi said.
He said the facility also offers SMEs an opportunity to connect with local and international importers and exporters while fostering valuable relationships and paving the way for partnerships.
The local businesses will have access to Afreximbank – initiated African Trade Exchange, a global marketplace, ensuring convenient and transparent trade by connecting verified importers and exporters, ultimately enhancing trade and reducing costs.
Afreximbank Senior Manager responsible for Digital Marketing Solutions Annerose Ngemu said, through the initiative, it is supporting the implementation of the African Continental Free Trade Area agreement.
“It is an end-to-end trading ecosystem. So what we are looking at is activating economic activities, not only for Malawi but all member states. We will activate a lot of activities which will then translate into the desired value.
“For businesses, it is about the ability to do more because we are now giving businesses in Malawi an opportunity to connect with other businesses in other African countries and other regions,” she said.