Reserve Bank of Malawi (RBM) deputy governor William Matambo has challenged Export Development Fund (EDF) to solicit investments that can take advantage of the financing opportunity availed through the agreement with Botswana investor Norsad Capital.
He said this on Wednesday in Lilongwe when EDF and Norsad Capital signed a memorandum of understanding (MoU) to boost the provision of financing solutions that can support the country’s business growth.
Lungu: Both deposit and lending rates
are a contractual matter
“The opportunity that has been availed through this partnership will only bear fruit if you, as the local partner, remain true to its spirit,” said Matambo.
He urged the private sector to take advantage of the financial instruments that will be available through the agreement to push forward the export diversification drive for economic development.
“This is an opportune time for the country’s exporters to take advantage and think of those projects which otherwise had no long-term financing, to bring them on board and then get the necessary funds so that we can export more than what we are currently doing,” said Matambo.
EDF managing director Fredrick Chanza acknowledged the high demand for export financing in the country, adding that a lot more needs to be done to make this funding available.
“The demand for export financing is quite high and what we are doing is not enough. There is need for more development finance interventions,” he said.
Norsad Capital chief executive officer Kenny Nwosu said having invested in Africa for 33 years, the company understands the value of partnerships to succeed in terms of investing.
He said although they do not have a local office in Malawi, their plan is to partner with those who are local that understand the market.
Nwosu said through this partnership, they hope to support growing businesses that can potentially become champions in various sectors.
In a written response on Wednesday, Malawi Confederation of Chambers of Commerce and Industry president Lekani Katandula said anything that can help provide financing at more affordable interest rates is a relief for the business community.
Norsad has been investing in the Southern African Development Community since 1990, supporting growth in companies and investing around $750 million (about K821 billion) in over 170 companies across multiple sectors.
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