Nairobi, Wednesday 2 October, 2024: – In a move to scale up its lending activities for various micro, small, and medium enterprises National Bank of Malawi (NBM) Plc has entered into a five-year loan portfolio cover partnership with the African Guarantee Fund (AGF).

The cover will support start-ups, women led businesses and green funding initiatives.

AGF is a pan-African guarantee provider that promotes economic development by providing financial institutions with partial credit guarantees and capacity development programs specifically intended to support Small and Medium-sized Enterprises in Africa.

The signing ceremony was held in Nairobi, Kenya on October 2, 2024, officiated by AGF Group Chief Executive Officer Jules Ngankam and NBM Plc Chief Executive Officer (CEO), Harold Jiya.

In his remarks, Jiya said the guarantee will leverage untapped emerging sectors, enabling the Bank to expand its products and service offerings to various sectors, create business synergies, increase the overall number of beneficiaries, and enhance financial inclusion.

Commenting on the partnership, Ngankam said “One of the challenges that many SMEs face in accessing credit, is lack of adequate collateral to qualify their borrowing. This collaboration is part of AGF’s continued efforts to empower SMEs, drive economic growth, and support sustainable development across our continent. By utilizing AGF’s Loan Portfolio Guarantee facility, NBM will benefit from risk-sharing arrangements, enabling the bank to extend credit to SMEs that otherwise face significant barriers to accessing finance.”

A key highlight of the partnership is its leverage of the African Development Bank’s Affirmative Finance Action for Women in Africa (AFAWA) initiative through the AFAWA Guarantee for Growth program. NBM will therefore provide targeted financial support for women-led and women-owned businesses, thus empowering female entrepreneurs and fostering gender inclusion in Malawi’s business landscape.

In a statement provided, Melissa Basque-Roux, AFAWA Coordinator underlined: “This loan guarantee partnership will improve access to finance for women entrepreneurs, breaking down structural barriers and empowering them to grow their businesses, thereby contributing to sustainable economic development.”

Additionally, through AGF’s Green Guarantee Facility, NBM will increase financing for businesses investing in sustainable, low-carbon technologies. To compliment the guarantee products, AGF is at an advanced stage in structuring a Capacity Development program that will enhance NBM’s technical capacity to foster financial inclusion for its SME segment. – END –

About National Bank of Malawi

National Bank of Malawi plc (NBM plc) was established in 1971 is the largest bank in Malawi and listed on the Malawi Stock Exchange on 21st August 2000 with an over subscription of 3.4 times. It is currently one of the most liquid stocks and a key and vibrant player on the stock exchange.

NBM plc operates 32 service centres and has a network of 135 ATMs and 1535FastServe agents. The Bank owns 6 subsidiaries – NBM Development Bank, NBM Pensions Administration Limited, NBM Capital Markets, Stockbrokers Malawi Limited, United General Insurance Limited and Akiba Commercial Bank in Tanzania.

About African Guarantee Fund (AGF)

African Guarantee Fund (AGF) is a specialized guarantee provider whose mission is to facilitate economic development and poverty reduction in Africa. To achieve this, AGF increases access to finance for Small and Medium-sized Enterprises (SMEs) across key economic sectors through an array of guarantee products and capacity development assistance. Since inception, AGF has unlocked more than USD 4.3 billion in SME financing, through partnerships with 250 partner financial institutions across 43 African countries.  

AGF is backed by the following shareholders and sponsors: The Government of Denmark through the Danish International Development Agency (DANIDA), the Government of Spain through the Spanish Agency for International Cooperation (AECID), the African Development Bank (AfDB), French Development Agency (AFD), Nordic Development Fund (NDF), Investment Fund for Developing Countries (IFU), German Development Bank (KfW), French Agency for Private Sector (PROPARCO), West African Development Bank (BOAD), Global Affairs Canada (GAC), USAID's West Africa Trade & Investment Hub (WATIH), TechnoServe and Norad.

African Guarantee Fund is rated AA- by Fitch Ratings.

About the Affirmative Action for Women in Africa (AFAWA)

AFAWA is a pan-African initiative that aims to close the $49 billion financing gap for women in Africa through a comprehensive support. AFAWA aims to unlock $3 billion in financing for women-owned and women-led small and medium enterprises by 2026. AFAWA is supported by the African Development Bank's partners and donors, the G7 countries, the Netherlands and Sweden and the Women's Enterprise Finance Initiative (We-Fi). Through AFAWA, the African Development Bank has approved $1,5 billion of investment for women entrepreneurs in 32 countries, channeled through 96 financial institutions.

For more Information, please contact:

Diana Aluga

Group Communications and Public Relations Officer

Tel: +254 732 148 000

Email: This email address is being protected from spambots. You need JavaScript enabled to view it.

Website: www.agf.africa

Akossa Hiwa

Marketing and Corporate Affairs Manager

Tel: +265 884824662

Email: This email address is being protected from spambots. You need JavaScript enabled to view it.

Website: www.natbank.co.mw