Local businesses tap K82bn from EDF
The Export Development Fund (EDF) has disbursed funding worth K82.96 billion to businesses since its inception in 2014, available data from the Fund shows.
This funding, according to EDF, has gone towards support of various transformative export-oriented transactions and infrastructural projects.
According to the recently released EDF integrated performance report, EDF made the funding available to about 98 businesses within the last 10 years in the process contributing to the creation of over 25 000 jobs and saving at least 14 000 jobs.
In a statement made available to Business News EDF managing director, Fredrick Chanza said EDF has been instrumental in promoting and enhancing the export capabilities of Malawi through provision of various financial and non-financial support services to businesses.
He said: “We have over the years expanded on our mandate to cover critical areas that support the national transformation agenda and grown from only focusing on financing downstream export transactions to investing in up streaming interventions, such as project preparation, infrastructure finance and support to trade-related logistics.
“To date, we have disbursed funding close to K82.96 billion to businesses. Out of which, K10 billion went towards supporting SMEs, about K2 billion supported youth-led businesses, and we also approved transactions worth about K765 million for women-led business.”
He said the Fund is currently in the process of facilitating strategic export enhancing initiatives, such as industrial parks, mining, and export trading companies, which will pull investments of over $1 billion within the next two to three years.
“We remain committed to providing financial solutions that will help to accelerate structural transformation in Malawi,” said Chanza.
Commenting on the EDF financing Mzuzu Coffee chief executive officer Mackson Ng’ambi said the Fund’s financial backing has helped Mzuzu Coffee to secure working capital they need to meet the costs related to procurement of raw materials, processing, and packaging of their coffee for export markets.
“EDF has been a partner to us since 2020. Their export financing facility has allowed us to remain in business and be able to fulfil our export ambitions. With their support we are now able to pay on time the farmers who supply us with the raw coffee and buy materials for packaging the processed coffee to meet international standards,” he said.
EDF provides several financing solutions to businesses in the form of debt, quasi-equity, guarantees, trade finance, bridging finance and venture capital and project preparation services.
These financial solutions are aimed at stimulating the country’s productive potential and supporting the development, facilitation, expansion and promotion of exports and cross border trade, while at the same time encouraging value addition to local products.
