As Malawi strives to strengthen its competitiveness in the global market, developing a pipeline of bankable projects is essential to achieving the country’s economic goals. The Export Development Fund (EDF) has intensified its support for project preparation, creating an opportunity for impactful, investment-ready projects that contribute to the nation’s growth. One such project receiving EDF’s support is Rift Valley Mining Company Limited.

Rift Valley Mining Company, a Malawian-owned enterprise, is currently advancing a lime quarrying and processing project aimed at producing limestone products for both local and export markets. Through EDF’s Project Preparation Facility, Rift Valley Mining has secured funding to support critical early-stage development, including comprehensive feasibility studies and site preparation. This financing has been instrumental in advancing exploration activities to position the project as bankable and investment ready.

“Our project is currently in the exploration stage, and reaching this point has been made possible through financing from the Export Development Fund’s Project Preparation Facility,” said Russell Thornicroft, Managing Director of Rift Valley Mining. “This facility provided essential funding for the initial exploration phase—support that is often unavailable from traditional banks. I encourage anyone with promising ideas to pursue them and consider approaching EDF for support.”

EDF’s Board of Directors recently visited the project site to review progress. Expressing his satisfaction, EDF Board Chairperson Dr. Neil Nyirongo stated, “We are pleased with the advancements Rift Valley Mining has made in this initial phase. EDF remains committed to backing projects that have the potential to drive Malawi’s economic transformation. Our goal is to support initiatives that bring sustainable growth and create long-term value for the nation.”

As a development finance institution, EDF is playing a pivotal role in advancing Malawi’s economic development by building a pipeline of bankable projects that attract private investment. Through the Project Preparation Facility, EDF aims to prepare high-potential projects for investment, enabling them to reach the readiness needed to secure future funding.

Stakeholders at the Export Development Fund’s engagement forum held on  16th October 2024, have agreed that collaboration is key to unlocking  the country’s international competitiveness. This is against the backdrop that Malawi needs to take advantage of the immense trade opportunities especially those presented by the African Continental Free Trade area which consist of a market of over 1.4 billion people and GDP of $3.4 trillion.

Hon. Simplex Chithyola Banda, Minister of Finance & Economic Affairs, attending the EDF Stakeholders Engagement Forum

Speaking at the forum, Minister of Finance and Economic Affairs Hon, Simplex Chithyola Banda, MP, said for the country to fully capitalise on these trade opportunities there is need for stakeholders both from the public and private sector to work together. He also called on financial institutions to step up their game by offering competitive and innovative financing solutions to enable real sector players to produce goods and services that can compete both domestically and internationally.

‘In today’s global marketplace which continues to rapidly evolve, competitiveness is not just a goal but a necessity. And for Malawi to thrive, we must equip our businesses to succeed in international markets, creating an environment where our entrepreneurs can innovate, scale, and compete on the global stage. I am happy that the EDF is playing a crucial role because apart from proving to be a financier, it is a strategic partner to businesses, offering tailored solutions that empower entrepreneurs to pursue growth and seize international opportunities,’ said Chithyola Banda.

In his remarks, Governor of the Reserve Bank, Dr. Wilson Banda said the country’s economy has suffered from chronic structural imbalances, owing to the narrow manufacturing and export base which has affected the country’s competitiveness on the global market.  He also added that lack of readily available investment avenues that are well packaged and significantly de-risked has led to allocation mismatches that ultimately starve the transformation agenda of the much-needed capital resources needed to catalyse development of strategic projects

‘So national development finance institutions like the EDF are critical in correcting the resource allocation mismatches because they work together with financial market operators to de-risk key growth sectors by designing large scale interventions that are commercially viable. For example, the Project Preparation Window at EDF is assisting in bringing concepts and ideas to bankability which I believe will in pooling resources from diverse financing houses to capacitate the country’s economic growth sectors,’ Said Dr Banda.

The EDF Managing Director, Mr. Fredrick Chanza, highlighted EDF’s role in empowering Malawian businesses through tailored financing solutions, with a focus on promoting intra-African trade, value addition, and access to affordable trade finance. Mr. Chanza emphasized that EDF is committed to unlocking the country’s export potential by supporting key industries such as agriculture, mining, tourism and agro-processing.

The forum also featured an insightful panel discussion, which included Phillip Madinga, President of the Bankers Association of Malawi; Ms. Chakudza Linje, Director of Financial Markets at the Reserve Bank of Malawi and EDF Board Member; Mr. Macmillan Anyanwu, the African Development Bank Malawi Country Manager; and Ms. Alice Magombo, Director of Investment for the Ministry of Trade. The panellists shared their perspectives on developing strategic partnerships and innovation to drive economic growth, emphasizing the role of financing and trade in unlocking Malawi’s potential.

The EDF Staeholders Engagement Forum  highlighted the relevance of strategic partnerships and emphasized that the solutions to Malawi’s economic challenges lie in the collective efforts of all sectors​. The forum concluded with a call to action for stakeholders to work together in building a competitive and sustainable economy for the prosperity of Malawi on the global stage.

His Excellency, Dr. Lazarus McCarthy Chakwera, President of the Republic of Malawi, recently launched the Magwero Industrial Park project in Lilongwe. The launch event took place on 1^st June 2024 in Magwero, Lilongwe and was attended by Mr. Gagan Gupta, President-Founder of ARISE IIP, and Prof. Benedict Okey Oramah, President of Afreximbank.

The launch event is a follow up to a contract signed in June 2023, between the Government of Malawi, represented by the Export Development Fund (EDF), and ARISE Integrated Industrial Platforms (ARISE IIP). Under a public-private partnership, this agreement defines the development of an integrated industrial park in area 55, Lilongwe.

Export Development Fund (EDF), in collaboration with the Ministry of Trade and Industry, Afreximbank, and ARISE Integrated Industrial Platforms, recently hosted a Business Roundtable Discussion focused on advancing Malawi’s export manufacturing sector to stimulate economic growth and development. The event provided a collaborative platform for business leaders and policymakers to share insights, discuss challenges, and identify actionable strategies for boosting export manufacturing, particularly through the utilization of special economic zones (SEZs).