By William Kumwembe in Abuja, Nigeria:
Malawi Stock Exchange-listed NBS Bank has signed an agreement with the African Export-Import Bank (Afreximbank) to drive project development and trade growth in Malawi.
The deal will initially see the two banks contribute a total of $5 million to jointly fund local businesses. Of this amount, NBS Bank has raised $4 million while Afreximbank is injecting $1 million.
The joint financing agreement paves the way for collaboration in areas such as project origination, technical advisory, co-financing, capacity building and advocacy.
NBS Bank Chief Executive Officer (CEO) Temwani Simwaka and Afreximbank Executive Vice President of Intra-African Trade Kanayo Awani signed the pact on behalf of the two institutions on the sidelines of the Afreximbank Annual Meetings in Abuja, Nigeria.
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In an interview following the signing, Simwaka said the financing pact positions the bank to support local ventures from the business ideation stage.
“It is a significant step towards accelerating Malawi’s integration into intra-African trade and unlocking economic potential,” she said.
Simwaka added that the joint project preparatory facility will support initiatives at the pre-bankable stage, which includes early project preparation.
She said the bank is particularly interested in funding interventions and projects in sectors such as agro-processing, manufacturing, energy and infrastructure development.
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Managing Director of Nico Holdings, the parent company of NBS Bank, Vizenge Kumwenda, NBS Bank Chief Wholesale Banking Officer Alfred Nhlema and Nico General CEO Donbell Mandala witnessed the signing.
In a separate interview, Kumwenda said the facility enables the bank to support public-private partnerships and key growth sectors such as agriculture, tourism, mining and manufacturing.
“Many projects fail to attract financing because they are not adequately prepared to demonstrate their significance and how they would benefit various stakeholders.
“So, Nico Capital will identify opportunities in the market and offer technical support. We are particularly focused on infrastructure development,” Kumwenda said.
