By Wahard Betha
Export Development Fund (EDF) says it has provided over K82.96 billion in financing to local businesses between the years 2014 and 2022.
MD for EDF Fredrick Chanza says in a Press Statement that the funding has gone towards support to various transformative export-oriented transactions and infrastructural projects.EDF has made the funding available to about 98 customers within the period.
Chanza says through provision of financial support, the institution has contributed to the creation of over 25,000 jobs and saving 14,000 jobs.
He explains that during the period, the EDF has been instrumental in promoting and enhancing the export capabilities of Malawi through provision of various financial and non-financial support services to businesses.
Chanza says: “Since we started our operations over 10 years ago, we have expanded on our mandate to cover critical areas that support the national transformation agenda.”
“We have grown from only focusing on financing downstream export transactions to investing in upstreaming interventions such as project preparation, infrastructure finance and support to trade-related logistics.”
“Up to date we have disbursed funding close to K82.96 billion to businesses. Out of which, K10 billion went towards supporting Small and Medium Enterprises (SMEs), about K2 billion supported youth-led businesses, and we also approved transactions worth about K765 million for women-led business.”
“Currently, we are in the process of facilitating strategic export enhancing initiatives such as industrial parks, mining, and export trading companies, which will crowd in investments of over US$1-billion within the next two to three years.”
Chanza also stresses the institution’s commitment towards provision of financial solutions that will help to accelerate structural transformation in Malawi.
He explains: “As a Development Finance Institution (DFI), EDF provides several financing solutions to businesses in the form of debt/equity, quasi-equity, guarantees, trade finance, bridging finance and venture capital and project preparation services.”
“These financial solutions are aimed at stimulating the country’s productive potential and supporting the development, facilitation, expansion and promotion of exports and cross border trade, while at the same time encouraging value addition to local products,”.
EDF, a subsidiary of Reserve Bank of Malawi, was incorporated in 2012 and is mandated to provide financial and advisory services to businesses in growth sectors of the economy, aimed at stimulating Malawi’s productive capacity as well as diversifying the economy.
This is done by developing, facilitating, expanding, and promoting exports and cross border trade, while at the same time encouraging value addition to local products.
The Fund also provides finance and non-finance services for catalytic industrial development and trade carrying infrastructure.
EDF follows a commercial approach to business and applies DFI’s best practice assessment criteria for selection and support of transactions to ensure efficiency and sustainability.