Ecobank Malawi secures$10 million trade finance guarantee

Ecobank Malawi and Proparco, a subsidiary of Agence Française de Developpement Group, have signed a $10 million (about K17 billion) trade finance guarantee to enable the bank secure letters of credit for the importation of strategic commodities such as fertiliser and raw materials.

The agreement will facilitate the development of trade relations between local importers and international exporters, which is a crucial enabler for the country’s economic growth.

In a statement, Ecobank Malawi managing director Raymond Fordwuo said the emphasis on fertiliser underscores the bank’s commitment to supporting sectors crucial for the country’s economic development.

“By facilitating the importation of this strategic commodity, we contribute not only to the growth of businesses and the agriculture sector, but also to the overall prosperity and well-being of the Malawian people,” he said.

Fordwuo said Ecobank Malawi is not merely a bank, but a partner in progress, dedicated to shaping a future and facilitating trade.

On his part, Proparco regional director for Southern Africa and the Indian Ocean Steven Gardon said they are delighted to extend their partnership with the Ecobank Group in Malawi.

“This will help to strengthen economic resilience and food security in the country,” he said.

The facility forms part of the Farm initiative launched in 2022 by France President Emmanuel Macron alongside the European Union, the Group of Seven and the African Union to ensure food security in the most vulnerable countries.

It will provide a strong response to Malawi’s food insecurity challenges, compounded by the Russia-Ukraine war and Cyclone Freddy in mid-March this year.