The Export Development Fund (EDF) has received an 'A' rating for development impact following a peer review assessment by the Association of African Development Finance Institutions (AADFI). EDF has been awarded the Prudential Standards and Guidelines Rating System (PSGRS) Rating Award for achieving a performance result of A in the 2024 PSGRS Rating exercise. The ‘A’ rating is based on EDF’s 83% compliance score with the PSGRS, a framework introduced in 2020 by AADFI to evaluate the performance of development finance institutions in Africa.

The United Kingdom has introduced a new trade scheme that grants Malawi duty-free, quota-free access to 99.8% of its exports to the UK, a move expected to boost Malawi’s export sector.

The Developing Countries Trading Scheme (DCTS), launched in 2023, replaces the Generalised Scheme of Preferences (GSP) that previously governed Malawi-UK trade. The DCTS offers simpler rules, including relaxed rules of origin, which allow Malawian exporters to use up to 75% imported inputs in their products without losing preferential access.

Malawi’s trade with the UK has historically shown a trade deficit, with the country consistently importing more than it exports. In 2023, Malawi’s exports to the UK reached USD 39 million, dominated by tea, edible fruits, nuts, and essential oils.

The Export Development Fund (EDF) has reported a strong financial performance for the year ended 31 December 2024, with profit after tax rising by 95% to K18.9 billion, compared to K9.7 billion in 2023. This growth reflects EDF’s focused support towards high-potential, export-oriented sectors and significant recoveries from loan impairment provisions.

According to the audited financial statements, retained earnings grew by 55% to K32.4 billion, while total equity increased by 58% to K70.9 billion, further reinforcing the Fund’s capital base and financial sustainability. EDF also closed the year in a strong liquidity position, with current assets of K81.6 billion against current liabilities of K39.5 billion.

Operationally, EDF disbursed K13.5 billion in 2024, a 109% increase from the previous year. The disbursements targeted high-export potential sectors, with agro-processing receiving the largest share, followed by tourism, mining, agriculture, and manufacturing. These investments contributed to creating and supporting 791 jobs, of which 420 benefited women and youth.

Our performance reflects a deliberate focus on strategic sectors that can drive export growth and diversify Malawi’s economy. We remain committed to working with businesses and stakeholders to unlock more value in the years ahead,” said Managing Director, Fredrick Chanza

EDF remains aligned with Malawi’s national development agenda, driving enterprise growth, job creation, and building a more resilient export sector.

Key 2024 Performance Highlights:

We thank our stakeholders for their continued partnership and look forward to further progress in 2025.

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