NBS Bank plc has received a $5 million (about K8.7 billion) funding boost to support the Malawi Stock Exchange (MSE)-listed bank’s initiative to become the reference lender to the food and agriculture segment in the country.
EDFI Management Company (EDFI MC), a European Union (EU)-based impact financial services provider, through its EU-funded Agriculture Financing Initiative (AgriFI) announced the strategic investment in a statement yesterday, .
The initiative is expected to support the diversification of the country’s agricultural sector, the main driver of the country’s economic growth.
NBS Bank plc chief executive officer (CEO) Kwanele Ngwenya is quoted in the statement as having expressed excitement with the investment.
He said: “This funding will enable us to enhance our support for strong agriculture sector businesses and related smallholders in Malawi, providing them with the necessary resources and financing to expand processing capacity and improve their productivity and livelihoods.”
Ngwenya said the bank’s focus on key agricultural value chains will not only benefit the farmers, but also contribute to the growth of the agro- based economy.
EDFI Management Company CEO Rodrigo Madrazo said the firm’s investment in NBS Bank plc signifies their commitment to supporting smallholder farmers in Malawi.
He said: “By focusing on key agricultural value chains, we aim to enhance productivity and livelihoods and drive sustainable growth in the region.
“This investment will have a significant impact on smallholder farmers by facilitating access to financing and resources that will help improve their productivity and livelihoods.”
The investment, which is part of the African, Caribbean and Pacific (ACP) regional window, is supported by the Secretariat of the Organisation of African, Caribbean and Pacific States (Oacps) to strengthen and support bank’s investment in the agriculture sector, which contributes about 25 percent to the country’s gross domestic product.
Oacps value chains expert Yvonne Chileshe said they are delighted to support the investment in NBS Bank by focusing on smallholder farmers and key agricultural value chains.
She said the initiative aligns with their mission to facilitate access to finance for the missing middle, thereby promoting sustainable development and improving livelihoods across the Oacps region.
“We believe that this collaboration will drive positive change and create opportunities for smallholder farmers to thrive.
“This investment in NBS Bank plc aligns with its mission to unlock, accelerate and leverage sustainable investments in medium, small and micro-agri-enterprises that operate in developing countries, with a specific focus on smallholder inclusiveness.”
NBS Bank plc has been hailed for pursuing an ecosystem approach, identifying strong transformers and exporters in the tea and macadamia value chains eligible to receive the bank’s financing.
NBS Bank plc is one of the five banks listed on MSE. The others are FDH Bank plc, National Bank of Malawi plc, Standard Bank plc and FMB Capital Holdings, whose subsidiary is First Capital Bank.
Last week, NBS Bank plc reached the K1 trillion market capitalisation on the 16-counter MSE.
