NBS Bank plc

With the aim to boost smallholder farming in Malawi AgriFI made a strategic investment, as a part of AgriFI ACP Regional Window to help NBS Bank to become a prime lender to the food and agriculture sector in Malawi.

Project overview

NBS is a Malawian commercial bank offering banking and insurance products and services to individuals, SME’s and corporates throughout Malawi. It pursues a customer-centric approach through digitalisation and a diversified customer base. Following a strategic redirection, NBS aims to become the prime lender to the food and agriculture segment in Malawi.

Funding objective

AgriFI will provide an unsecured loan of up to USD 4 million. The financing aims to support NBS in developing its food & agri strategy by extending long-term credit to clients in selected value chains, including smallholder farmer organizations. The USD facility will allow exporting companies of agricultural produce to mitigate their exchange rate risk by having both revenues and debt repayments in the same currency.

Investment rationale

Agriculture is of high importance for the Malawi economy as well as the rural population. Assisting NBS in its strategy to finance this sector will allow the country to diversify away from tobacco exports and have a demonstrative effect for the local financial sector, with the potential to catalyse additional financing to impactful agriculture value chains.

More info:

• Press release
• Disclosure
• NBS Bank Plc