By Taonga Sabola In Durban, South Africa:
Malawi on Tuesday signed a $1 billion (about K840 billion) deal with Elsewedy Electric of Egypt at the ongoing intra African Trade Fair in Durban, South Africa.
Minister of Trade Sosten Gwengwe signed on behalf of the Malawi Government while Elsewedy President and Chief Executive Officer, Engineer Ahmed Elsewedy, signed on behalf of the Egyptian energy giant.
Gwengwe said Elsewedy will bring flagship investments into Malawi in sectors such as energy, manufacturing and tourism that will help boost the country’s economy.
According to Gwengwe, this is one of the biggest deals signed so far at the ongoing IATF.
On his part, Elsewedy said his firm was proud to seal the deal with Malawi which would help revolutionise energy and other industries in the country.
He said Elsewedy Electric creates sustainable projects in energy and infrastructure that enable businesses, communities and regions to thrive.
Elsewedy Electric was listed on the Cairo Stock Exchange in 2006.
On Tuesday, Gwengwe disclosed that Malawi had also secured other trade deals within the African Continental Free Trade Area, citing Angola, Botswana, South Africa, South Sudan and Cote d’Ivoire as some of the countries.
He said, as of Tuesday, Malawi had recorded $371 million worth of export deals for the supply of various commodities like maize, beans and rice to these regional markets.
“Specifically, we have struck an additional deal with South Sudan to supply various commodities, mostly maize, beans and rice, worth $168 million from the previous $127 million making a total of $295 million. We also have a deal with Angola worth $50 million, Botswana $40 million, South Africa $20 million deal for the supply of rice.
“We have also received a serious enquiry to supply 60, 000 tonnes of rice and other grains to Cote d’Ivoire worth approximately $59 million,” Gwengwe said.
On Tuesday, the Arab Bank for Economic Development in Africa (Badea) and the Reserve Bank of Malawi signed a trade finance of $30 million to facilitate the above trade deals.
About 30 local firms are taking part in the IATF 2021.
IATF 2021 is targeting trade and investment deals of more than $40 billion. The fair has attracted more than 4,000 delegates and more than 1000 exhibitors, including over 1,000 buyers from over 55 countries.