Accelerating Structural Transformation in Malawi

COVID-19 Trade Impact Mitigation Facility (COTIFA)


The world is presently battling a pandemic, Coronavirus (COVID-19) which has posed a threat to the economy and human life. The effects of the virus have an estimated potential of costing the global economy about US$1 trillion which would result in a significant decline of 0.4 percent points in global Gross Domestic Product (GDP) growth. A number of sectors have been affected posing a threat to many African countries, Malawi inclusive Export Development Fund has therefore introduced a “Covid-19 Trade Impact Mitigation Facility (COTIMFA)” towards cushion the effects of the pandemic.

Product rationale

EDF’s Covid-19 Trade Impact Mitigation Facility (COTIFA) aims at assisting companies in Malawi to assist companies in Malawi manage the adverse impact of financial economic shocks caused by COVID-19 Pandemic. Such an impact may be directly caused by Pandemic-induced sharp declines in commodity prices, a sudden significant drop in tourism earnings, disruptions in supply chains, and/or closure of export manufacturing facilities.  Under this facility, EDF is intervening through credit and risk bearing instruments by providing support to companies which need direct funding, lines of credit, guarantees and other similar instruments.

The facility is a rapid financial response that will enable companies to continue carrying out business while adjusting to the impacts of the Pandemic, as well as manage effects of the Pandemic during and after situations normalize specifically by:

  • Supporting eligible companies to meet debt payments falling due and prevent payment defaults;
  • Providing trade finance facilities for exports in view of distressed working capital;
  • Assisting companies whose revenues are tied to specific export revenues to manage the sudden declines of export earnings.


Product Features/Attributes

With a K20 billion allocation, the facility is available for a maximum of 18 months as it is largely driven by the existence of the Pandemic. The duration shall be reviewed from time to time depending on developments in the discovery of a drug or vaccine.

Eligible Companies

Export manufacturer and tourism projects with the following features:

  • Companies experiencing significant drop in tourism earnings; and
  • Companies that are likely to suffer a decline in export demand as a repercussion of a shutdown of export markets, sharp price declines, disruption in supply chains, and disruptions in domestic productions.

Application Requirements

  • Business/owners profile;
  • Nature of business and funding requirements.
  • Audited financial statements for the past three years;
  • Financial statement projections;
  • A summary of borrowing history and bank references;

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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