By Cathy Maulidi in Abuja, Nigeria:
President Lazarus Chakwera has asked for Afreximbank’s support to address Malawi’s economic challenges, including debt refinancing and climate-resilient financing.
The President also called for investments in key sectors.
During a meeting with President and Chairperson for the Board of Directors of Afreximbank, Professor Benedict Oramah, Chakwera emphasised the need for partnership to drive economic transformation and regional cooperation.
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“We are committed to ensuring the success of our economic development agenda, and we believe that Afreximbank’s support will be instrumental in achieving this goal,” Chakwera said. “We are seeking Afreximbank’s expertise to finance export-oriented private sector players, boost production and access African markets, thereby strengthening Malawi’s foreign currency reserves.”
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Chakwera also appealed for Afreximbank’s support to complete refinance negotiations on the remaining balance of the $498 million Reserve Bank of Malawi (RBM) loan, which would help in reducing the interest rate and extend the repayment period.
“The refinancing, outside IMF/ECF [International Monetary Fund Extended Credit Facility] parameters, is critical to address Malawi’s foreign exchange shortages and unsustainable debt service-to-exports ratio, exacerbated by Covid and climate shocks like Cyclone Freddy in [March] 2023,” he said.
Furthermore, Chakwera urged Afreximbank to consider prioritising financing for the remaining projects in the $1.4 billion investment pipeline, including the Mangochi International Airport, Cape Maclear Holiday Resort, Logistics Park in Mangochi and Industrial Parks in Blantyre.
“These projects have the potential to create jobs, attract foreign direct investments and support Malawi’s economic diversification under the Malawi 2063 vision,” he said.
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Chakwera also sought Afreximbank’s technical assistance to ensure Malawian goods meet African Continental Free Trade Area (AfCFTA) standards, enabling Malawi to leverage AfCFTA for increased intra-African trade.
“We believe that Afreximbank’s support will help us to position Malawi as a strategic trade hub in Southern Africa,” he said.
In addition, Chakwera promoted foreign direct investment opportunities in key sectors, including agriculture, mining, tourism, manufacturing and renewable energy. He cited Magwero Industrial Park as a model for industrialisation and job creation, inviting Afreximbank to facilitate investor connections through its Africa Trade Centre model.
In an interview after the meeting, Oramah said Afreximbank has already approved $200 million in financing for the Magwero Industrial Park project and has discussed with Chakwera the issue of how they can work together to improve Malawi’s gold trade.
“We have agreed on how we can reorganise and improve the gold industry to eliminate gold smuggling in Malawi,” Oramah said.
The meeting took place on the sidelines of the Afreximbank’s Annual Meeting for 2025, which is happening under the theme ‘Building the Future on Decades of Resilience’.
