Malawi Minister Highlights Significance of Export Credit Finance in Boosting Trade
He made these remarks during the opening of a three-day strategic training program on Export Credit Finance in Lilongwe on Monday.
LILONGWE, Malawi — The Minister of Trade and Industry, Simplex Chithyola Banda, has praised the pivotal role of export credit finance in promoting trade, investment, and export facilitation in Malawi, writes Judgement Katika.
He made these remarks during the opening of a three-day strategic training program on Export Credit Finance in Lilongwe on Monday.
Chithyola Banda emphasized that export credit finance is strategically important for Malawi, aligning with the country's Vision 2063 agenda, which aims to transform Malawi into an inclusive, wealthy, self-reliant, export-led, upper-middle-income country by 2063.
He noted that many African nations, including Malawi, possess abundant natural resources with significant potential for increased export activities.
However, they often lack the necessary financial resources or innovative financial instruments to fully exploit these resources for economic gain.
Chithyola Banda pointed out that the recently operationalized African Continental Free Trade Area (AfCFTA) Agreement has opened up extensive regional trade opportunities by creating a unified market comprising over 1.2 billion people and a gross domestic product (GDP) of $2.5 trillion.
To leverage these opportunities, Chithyola Banda stressed the need for businesses in the Southern African Development Community (SADC) region to access finance that enables them to bring goods and services to these markets.
He acknowledged the growing demands on Malawi and other SADC countries to expand their export trade footprint both within the African region and beyond. As a result, export credit finance has become increasingly vital.
Chithyola Banda highlighted the importance of continually investing in skills and capacities to complement efforts aimed at growing and diversifying export credit finance schemes and instruments available within the region and beyond.
Stuart Kufeni, CEO of the Southern African Development Community - Development Finance Cooperation and Resources (SADC-DFCR), emphasized the development of a strong skills base in the financial sector, especially within national development finance institutions.
These institutions are mandated by governments to mobilize resources for the development of key sectors such as agriculture, industry, and Small, Micro, and Medium Enterprises (SMMEs).
Frederick Chanza, CEO of the Export Development Fund (EDF), underscored that export credit finance serves as a lifeline for economies like Malawi to tap into the immense potential of international trade.
With limited resources, the support of export support agencies becomes essential to fund ambitious projects that can boost economic growth.
These agencies also help mitigate the risks associated with cross-border transactions, making them vital partners in the journey toward economic prosperity.
The training program aims to empower professionals, enhancing their knowledge and skills in export and trade credit to improve the export finance landscape in Malawi.