Ecobank secures $10 million trade financing guarantee
Speaking after signing the pact in Lilongwe last week, Ecobank Malawi Managing Director Raymond Fordwuo said through the initiative, the bank contributes to the growth of businesses and the agriculture sector. We are not merely a bank; we are a partner in progress, dedicated to shaping a future where Ecobank is synonymous with excellence in Trade facilitation,”…
Ecobank Malawi has secured a $10 million trade financing guarantee from a French development finance institution, Proparco, to help contribute towards food security in the country.
The guarantee will enable the bank secure confirmation lines on Letters of Credit for importation of strategic commodities such as fertiliser, basic foodstuffs and strategic raw materials.
It will help facilitate trade relations between local importers and international exporters.
Speaking after signing the pact in Lilongwe last week, Ecobank Malawi Managing Director Raymond Fordwuo said through the initiative, the bank contributes to the growth of businesses and the agriculture sector.
“This initiative is a testament to Ecobank Malawi’s vision of being a key player in fostering economic growth and facilitating Trade. We are not merely a bank; we are a partner in progress, dedicated to shaping a future where Ecobank is synonymous with excellence in Trade facilitation,” Fordwuo said.
Proparco Regional Director for Southern Africa and the Indian Ocean Steven Gardon said the arrangement will help strengthen economic resilience and food security in the country.
Gardon said the project is in line with Proparco’s 2023-2027 strategy themed ‘acting together for greater impact’, which aims to improve access to economic opportunities and strengthen the resilience of local economic system.
“This will help strengthen economic resilience and food security in the country,” Gardon said.
The French Minister of State, Chrysoula Zacharopoulou, and affirmed France’s commitment for food security, hence its support of the initiative.
“As we aim at reinforcing our partnership with Malawi, I am delighted that one of the first actionable solutions we will roll out precisely targets SDG 2 – Zero Hunger through the guarantees provided by our operator Proparcro to Ecobank Malawi,” Zacharopoulou said.
This facility forms part of the FARM initiative launched in 2022 by French President Emmanuel Macron, alongside the European Union, the G7 and the African Union, aimed at ensuring food security in the most vulnerable countries.
The project is earmarked to have a positive impact on food security, poverty reduction, decent work and economic growth, thus contributing to the achievement of three sustainable development goals: SDG 1 (eradicate extreme poverty), SDG 2 (zero hunger) and SDG 8 (develop a universal partnership for development).
