There are expectations that Malawi’s cement industry will achieve a steady, reliable supply, better financing for businesses, and reduced dependence on imports, following a strategic partnership between National Bank of Malawi (NBM) plc and Portland Cement Malawi.
The partnership, formalized through a Memorandum of Understanding (MoU) signed in October last year, focuses on strengthening the local supply chain, improving access to credit for businesses, and ensuring a stable cement supply nationwide.
It is designed to make financing accessible at every stage of the supply chain, from transporters to distributors and retailers, ultimately boosting local production and reducing the need for imported cement.
Speaking at a cocktail event in Lilongwe, NBM Board Chairperson Grant Kabango said the partnership has already shown significant results.
“Our colleagues at Portland Cement have established a production plant in Malawi, which is now feeding into the national supply line. As a result, Malawi can significantly reduce the importation of cement from other countries, thereby conserving foreign exchange,” he said.
Kabango added that the bank has rolled out financial facilities tailored to each stage of the cement supply chain. “Transporters, distributors, and wholesalers are now accessing the financing required to keep their operations running smoothly. Since signing the MoU in October, about K3.2 billion has already been utilised in Blantyre alone, and the positive results have prompted us to expand into the Central Region,” he said.
Portland Cement Malawi Chief Executive Officer Jianguo Liu highlighted the impact of the Balaka plant on national cement production. “Our Balaka plant alone has increased production capacity by 800,000 tonnes per year, representing almost 60 to 70 percent of the country’s total cement consumption last year,” Liu said.
He added that the partnership with NBM will make it easier for distributors and retailers to access financing, improving cash flow management and fostering growth across the sector.
The Balaka plant, developed at a cost of 100 million US dollars (around K200 billion), has already been commissioned, giving Malawi sufficient local production capacity to meet demand and avoid shortages.
