
A $5 million strategic investment in NBS Bank plc by Belgium-based EDFI Management Company (EDFI MC) is expected to diversify and strengthen Malawi’s agricultural sector, enhancing productivity and livelihoods for smallholder farmers and driving sustainable growth in the region.
According to Kwanele Ngwenya, NBS Bank plc’s Chief Executive Officer, this investment will enable the bank to enhance its support for strong agriculture sector businesses and related smallholders in Malawi.
“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.”
Ngwenya further said their focus on key agricultural value chains will not only benefit the farmers but also contribute to the country’s economic growth.
The investment is part of the ACP (African, Caribbean, and Pacific) regional window, supported by the Secretariat of the Organization of African, Caribbean, and Pacific States (OACPS). It aims to strengthen and support NBS Bank plc in becoming the reference lender to the food and agriculture segment in Malawi.
NBS Bank plc will pursue an ecosystem approach, identifying strong transformers and exporters in the tea and macadamia value chains eligible to receive the bank’s financing. This initiative is expected to have a significant impact on smallholder farmers, enhancing their productivity and livelihoods, and driving sustainable growth in the region.
EDFI MC Chief Executive Officer Rodrigo Madrazo emphasized the organization’s commitment to supporting smallholder farmers in Malawi.
“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.
OACPS Expert in value chain Yvonne Chileshe expressed her organization’s support for 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.
This investment is not the first time NBS Bank plc has received funding to support Malawi’s agricultural sector. In 2023, the bank acquired a 10-year, $5 million loan from the International Fund for Agricultural Development (IFAD) to provide specialized financial services and support to businesses involved in the agriculture sector.