The Republic of Malawi (Malawi) has become the second Southern African member country of Africa Finance Corporation (AFC).
The development shows an expansion of the corporation’s existing investment footprint in the country.
AFC had previously acted as Joint Mandated Lead Arranger (MLA) and Lender for a US$60 million commodity trade finance facility to Meridian Consolidated Investments Ltd (Malawi), the integrated agricultural commodities trading group to finance Meridians fertiliser importation and sale in four Southern African countries.
According to a statement, Malawi’s accession also supports AFCs membership expansion strategy into Southern Africa, and continued alignment of its country membership with its investment footprint.
Other member states of the AFC include: Benin, Cape Verde; Chad; Côte d’Ivoire; Djibouti; Gabon; the Gambia; Ghana; Guinea-Bissau; Guinea-Conakry; Kenya; Liberia; Nigeria; Rwanda; Uganda; Sierra Leone and Zambia.
Cumulatively, the Corporation has to date invested US$4.5 billion in projects across 28 African countries, and in a wide range of sectors including power, telecommunications, transport and logistics, natural resources, and heavy industries.
Commenting on the development, the CEO of AFC, Andrew Alli said: “We are delighted to welcome Malawi as a member country of the Corporation. Malawi has a rich pipeline of bankable investments in the infrastructure space, and we are looking forward to exploring these opportunities.
“We are confident our unique business offering across project advisory, project development and financing in our 5-specialist sectors will go a long way towards closing the infrastructure gap in the country.
Also, Malawi’s Minister of Finance, Dr. Goodall Gondwe said: “Malawi has an abundance of infrastructure projects with huge financial and social potential that will create benefits for all stakeholders and close the country’s infrastructure gap.
“We are, therefore, honoured to join AFC, and become a member state of the Corporation. We look forward to further engaging with AFCs management to support the delivery of critical projects across Malawi.”