World Bank mentors journalists on economic reporting
The World Bank on Friday took a group of journalists on an economic reporting training to AHL Commodities Exchange (AHCX) head office in Lilongwe to learn about the modern market for agricultural produce in Malawi.
The tour was also meant to enable the journalists appreciate how the market was supporting farmers to access loans from banks through its Warehouse Receipt System.
provide practical learning
The Bank, through its International Finance Corporation (IFC) arm, is supporting Malawi through the Ministry of Industry, Trade and Tourism to develop legislation on Warehouse Receipt Financing as one way of improving access to finance by smallholder farmers in the country.
World Bank Malawi communications officer Zeria Banda said the visit to AHCX was aimed at providing the journalists with practical learning during the training it sponsored.
“We wanted the journalists to interact with beneficiaries of interventions supported by the World Bank Group. One such [intervention] is the Warehouse Receipt System with AHCX as one of the companies that has been using the system,” said Banda.
In his presentation, AHCX clearing settlement manager Robert Nazitwere said the exchange facilitates access to bank loans by farmers and commodity traders as part of its role of providing a modern and trusted market for legumes and grain in Malawi.
He said the commodity held at AHCX is used as collateral for the loans.
“Most farmers in Malawi sell their produce at low prices out of distress as they are usually desperate for cash after harvest. The warehouse receipt financing available through AHCX allows the farmers to access some cash while their commodity is being kept at an AHCX warehouse waiting for prices to improve,” said Nazitwere.
