Accelerating Structural Transformation in Malawi

Construction and Export Manufacturing Guarantee and Re-Financing Facility (CoNEM)


The manufacturing sector has potential to spur economic growth and support the goal of transforming the country into an industrialized economy with high valued exports as well as promote job creation and the expansion of public revenue base. In Malawi, the sector remains under developed as noted by the profile of the country’s exports that are predominantly raw soft commodities as well as unprocessed minerals. One of the challenges Malawi experiences in promoting the financing of export manufacturing facilities relates to lack of appropriately structured financing that mitigates risks related to construction and project completion.

Construction and Export Manufacturing Guarantee and Re-Financing Facility (ConEM) aims at promoting exports of intermediate and finished products in order to attain more value from Malawi’s exported merchandise. The ConEM financing facility bridges the financing gap faced by agro-processing businesses as well as light manufacturing industries in order to increase their processing capacities.

Product Features/Attributes

The Facility is structured as a Dual Tranche Facility:

  • Tranche 1: The Original Facility (OF)- the Construction firm or the bank will fund the construction and installation phase of the manufacturing facilities backed by EDF’s “Contingent Guarantee”;
  • Tranche 2: Refinancing or Relay Facility- Upon completion and certification by the by an acceptable independent engineer, EDF will refinance the Original Facility while supporting the operations of the completed facilities.


The product has the following benefits;

  • Promoting the development of agro-processing and related infrastructure in Malawi to international standards.
  • Addressing concerns around agro-processing risks through innovating a structured instrument that will attract financiers in the development of value addition and related activities.
  • The project is afforded the opportunity of achieving a longer financing maturity than EDF or any other entity financing the construction phases will ordinarily be willing to give.

Application Requirements

  • Profiles of the Company/Project promoters, Board and management;
  • Business registration certification and memorandum and articles of association;
  • Market Study report for
  • Feasibility study report
  • Comprehensive Financial Model
  • Environmental and Social Impact Assessment report
  • Business plan covering the financing period
  • Engineering designs and Bills of quantities;
  • Profile of proposed contractors;
  • Operating service agreement with the suppliers of equipment;
  • Title of the proposed property on which the project will be developed;
  • Owners’ contribution for at least 30% of the total project cost.

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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