The African Export-Import Bank (Afreximbank) has signed a US$15 million amortizing term loan facility agreement in favor of FDH Bank Plc. Malawi, with a view to supporting the manufacturing sector, exporters and importers in Malawi.
Under the terms of the agreement reached at the recently concluded Afreximbank Annual Meetings (AAM2024) in Nassau, capital of the Bahamas, FDH Bank will use the proceeds of the facility to finance the commercial transactions of its clients operating in manufacturing, exporting and importing.
Mr. Haytham El Maayergi, Executive Vice President of Afreximbank, in charge of Global Trade Banksigned the agreement on behalf of Afreximbank, and Mr. George Chitera, Deputy Managing Director of FDH Bank Plc, initialed the document on behalf of FDH Bank Plc. Malawi.
Commenting on the agreement, Mr. El Maayergi said: “This facility will support the export of value-added commodities and production capacity of Malawi. It is in line with our export financing strategy, which also strengthens countries’ ability to earn foreign exchange.”
Mr. El Maayergi added that, through its intermediated lending approach, the facility is expected to help bridge the financing gap on the continent while strengthening the capacity of financial intermediaries to support businesses through financing and financing products. capacity building programs.
For this part, M. Chitera remarked: “As a bank, we believe in our capacity and potential to grow businesses and that is why we rely on our strategic partnerships such as Afreximbank and other like-minded institutions to increase our capacity to create tailor-made financial solutions that will reshape and boost intra- and extra-African trade. This US$15 million medium-term loan is one of the key steps towards this goal.”
The facility provides offshore financing, necessary to meet the high import requirements of various essential sectors of the economy.
Hosted by the Government of the Bahamas, the Afreximbank Annual Meetings 2024, were combined with the third Africa-Caribbean Trade and Investment Forum (ACTIF2024). Both events were held in Nassau, Bahamas, June 12-15.
