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.