African Export-Import Bank (Afreximbank) has signed an agreement to provide FDH Bank Plc, a Malawian fast growing bank, with a US$15-million (approximately K26,019, 840,000.00) amortizing term loan facility to support the manufacturing sector, exporters and importers in Malawi.
Under the terms of the agreement, signed during the just-concluded Afreximbank Annual Meetings in Nassau, capital city of The Bahamas, FDH Bank will deploy the proceeds of the facility to the financing of trade transactions of its clients involved in manufacturing, exports and imports.
Haytham El Maayergi, Executive Vice President of Global Trade Bank signed the agreement on behalf of Afreximbank while George Chitera, FDH deputy Managing Director, signed the facility agreement on behalf of Malawi’s home-grown bank, FDH Bank Plc.
In comments on the agreement, El Maayergi said: “This facility will support the export of value-added commodities and the manufacturing capacity of Malawi and is consistent with our strategy of financing exports which also enhances the foreign exchange earning capacity of countries.”
El Maayergi added that, through its intermediated lending approach, the facility would help in bridging the financing gap in the continent and would also strengthen the capacity of the financial intermediaries to support corporates with financing products and capacity building.
On his part, Chitera noted: “As a Bank, we believe in our ability and potential to grow businesses and that is why we leverage on our strategic partnerships such as with Afreximbank and other like-minded institutions to increase our capacity to create bespoke financial solutions which will reshape and drive Intra and Extra African Trade.
This US$15 million Medium Term loan facility is one of the major steps towards that goal.”
The facility provides offshore funding, required for the high importation needs of various critical sectors within the economy.
Hosted by the government of the Bahamas, AAM2024, which was combined with the third AfriCaribbean Trade and Investment Forum (ACTIF2024), was held in Nassau, The Bahamas from 12 June to 15 June.
African Export-Import Bank (Afreximbank) is a Pan-African multilateral financial institution mandated to finance and promote intra-and extra-African trade.
For 30 years, the Bank has been deploying innovative structures to deliver financing solutions that support the transformation of the structure of Africa’s trade, accelerating industrialization and intra-regional trade, thereby boosting economic expansion in Africa.
A stalwart supporter of the African Continental Free Trade Agreement (AfCFTA), Afreximbank has launched a Pan-African Payment and Settlement System (PAPSS) that was adopted by the African Union (AU) as the payment and settlement platform to underpin the implementation of the AfCFTA.
Working with the AfCFTA Secretariat and the AU, the Bank is setting up a US$10 billion Adjustment Fund to support countries effectively participating in the AfCFTA.
At the end of December 2023, Afreximbank’s total assets and guarantees stood at over US$37.3 billion, and its shareholder funds amounted to US$6.1 billion.
FDH Bank Plc
FDH Bank Plc, a fast rising home-grown financial institution and a commercial bank in Malawi licensed by the Reserve Bank of Malawi, the central bank and national banking regulator.
The bank was founded in 2008, as a subsidiary of FDH Financial Holdings Limited (FDHFHL), a financial holding group, formed in 2007 to replace First Discount House Limited (FDH).
In July 2015, FDH Financial Holdings Limited successfully acquired 75 percent ownership of Malawi Savings Bank, together with its subsidiary MSB Forex Bureau Limited.
In July 2016, FDH Financial Holdings Limited completed the merger of FDH Bank Limited and Malawi Savings Bank Limited (MSB).
The merger of the two banks culminated in the merger of FDH Money Bureau Limited and MSB Forex Bureau Limited. The merged entity adopted the name FDH Money Bureau Limited.
Afreximbank
Afreximbank has investment grade ratings assigned by GCR (international scale) (A), Moody’s (Baa1), Japan Credit Rating Agency (JCR) (A-) and Fitch (BBB).
Afreximbank has evolved into a group entity comprising the Bank, its impact fund subsidiary called the Fund for Export Development Africa (FEDA), and its insurance management subsidiary, AfrexInsure (together, “the Group”).
The Bank is headquartered in Cairo, Egypt.
“As a Bank, we believe in our ability and potential to grow businesses.”
George Chitera
FDH Bank Deputy Managing Director
