Accelerating Structural Transformation in Malawi

SADC-DFRC and EDF conduct an Export Credit Finance Training

SADC-DFRC and EDF conduct an Export Credit Finance Training

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The SADC Development Finance Resource Centre (SADC - DFRC) in collaboration with the Export Development Fund (EDF) of Malawi conducted a training on Export Credit Finance in Lilongwe from 28th – 30th August 2023. The training focused on basic principles of export credit finance, financial structuring of transactions, due diligence for underwriting transactions and commercial risk assessments of projects among others.

This has come at a time when export credit finance is becoming more important amidst growing demands for the country to expand its export trade footprints within the African region and beyond by growing the existing markets and opening frontier markets.

Speaking when he officially opened the training, Minister of Trade, and Industry, Honourable Simplex Chithyola Banda said export credit finance is a very strategic area for Malawi as it plays a critical role in promoting international trade.

Many African countries, Malawi inclusive, have rich natural resources that hold the tremendous potential for increased export activity, but we often lack either the financial resources or innovative financial instruments to fully exploit them to our economic advantage. We need sound export credit finance functions that should support and promote exports of our good and services and for that to happen we should continue to invest in skills and capacities so that these complement efforts of growing and diversifying export credit finance schemes and instruments that are available within the region and beyond,’ said Banda.

Chief Executive Officer for SADC Development Finance Resource Centre (SADC- DFRC), Stuart Kufeni stressed the importance of developing a strong skills base for the financial sector, particularly national development finance institutions (DFIs).

‘We understand that Development Finance Institutions have a pertinent role to play in providing local currency funding for projects being structured and or financed by international financial institutions like Export Credit Agencies, so it is our job as SADC- DFRC to ensure that these DFIs and all relevant stakeholders are well equipped with skills needed for such transactions,’ said Kufeni.

In his remarks, the Managing Director for Export Development Fund (EDF) Fredrick Chanza said the training is especially key for Malawi as it supports the ongoing initiatives aimed at diversifying the country’s export base like establishment of industrial parks, export trading companies, and other strategic export-oriented projects.

‘As a country we need sound and strong export credit finance functions to enable export trade to be done in a safe, value adding and sustainable manner. And as we strive to integrate into the global economy, export credit finance serves as a lifeline for economies like ours, enabling us to tap into the immerse potential of international trade.,’ he said.

The three-day training attracted participation from four countries namely, Malawi, Zimbabwe, Lesotho, and Egypt and over 60 participants attended. It was facilitated by Sindiso Ndlovu, Head of Political, Economic Analysis and Research and Paul Mojalefa, a Senior Deal Originator from Export Credit Insurance Corporation of South Africa SOC Ltd (ECIC). Malawi Agricultural Industrial Investment Corporation (MAIIC) and NBM Development Bank also co-hosted the training.

Contact Information

Export Development Fund
Public Service Pension Trust Fund House, 1st Floor, Plot Number 13/41, Presidential Way Drive Opposite Golden Peacock Office Complex. Lilongwe, Malawi
+265 992 859 129 / 882 415 633

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