NBS Bank plc has received a strategic investment of $5 million from Belgium-based EDFI Management Company (EDFI MC) through its EU-funded Agriculture Financing Initiative AgriFI, to support the diversification of the agricultural sector and contribute to the economic development of Malawi.
A statement from EDFI MC, a multilaterally owned impact asset manager said the investment is part of the ACP (African, Carribbean, and Pacific) regional window, supported by the Secretariat of the Organization of African, Caribbean, and Pacific States (OACPS) aimed at strengthening and supporting the ‘Caring Bank’ to become the reference lender to the food and agriculture segment in Malawi.
In his remarks, NBS Bank plc Chief Executive Officer Kwanele Ngwenya said the investment will help achieve the bank’s role of giving farmers access to financing to grow crops, produce, and add value.
“We are thrilled to receive this strategic investment from EDFI Management Company. This funding will enable us to enhance our support for strong agriculture sector businesses and related smallholders in Malawi, providing them with the necessary resources and financing to expand processing capacity and improve their productivity and livelihoods.”
“Our focus on key agricultural value chains will not only benefit the farmers but also contribute to the country’s economic growth,” said Ngwenya.
The statement further highlighted that NBS Bank plc is pursuing an ecosystem approach, identifying strong transformers and exporters in the tea and macadamia value eligible to receive the bank’s financing to support the diversification of the agricultural sector.
EDFI MC Chief Executive Officer Rodrigo Madrazo said by facilitating access to financing and resources the investment has a significant impact on smallholder farmers.
“Our investment in NBS Bank plc underscores our commitment to supporting smallholder farmers in Malawi. By focusing on key agricultural value chains, we aim to enhance productivity and livelihoods, and drive sustainable growth in the region,” said Madrazo.
In her remarks, OACPS Expert in value chain Yvonne Chileshe her organization is happy to support the significant investment in NBS Bank plc.
“By focusing on smallholder farmers and key agricultural value chains, this initiative aligns perfectly with our mission to facilitate access to finance for the missing middle thereby promoting sustainable development and improving livelihoods across the OACPS region. We believe that this collaboration will drive positive change and create opportunities for smallholder farmers to thrive,” said Chileshe.
In 2023 the ‘Caring Bank’ also acquired a 10-year Five million US dollar loan from the International Fund for Agricultural Development (IFAD) with a similar purpose of providing specialized financial services and support to businesses involved in the agriculture sector.