Boosting Smallholder Farming in Malawi – AgriFI investment of $4 million in NBS Bank
This strategic investment is a part of AgriFI ACP Regional Window and will help NBS Bank to become a prime lender to the food and agriculture sector in Malawi.
Brussels, Belgium – 28 January 2025 – EDFI Management Company (EDFI MC) through its EU funded Agriculture Financing Initiative AgriFI, announced today a strategic investment in NBS Bank Plc, a financial institution in Malawi. This investment, as part of the ACP regional window, supported by the Secretariat of the Organisation of African, Caribbean and Pacific States (OACPS) aims to strengthen and support NBS Bank Plc to become the reference lender to the food and agriculture segment in Malawi.
As part of its strategic positioning, NBS Bank Plc aims to become the prime lender to the agriculture sector in Malawi. The bank is pursuing an ecosystem approach, identifying strong transformers and exporters in the tea and macadamia value chains who will be eligible to receive NBS financing. This initiative aims to support the diversification of the agricultural sector and contribute to the economic development of Malawi.
The AgriFI ACP Regional Window, funded by the European Union, implemented by the OACPS Secretariat, and managed by EDFI Management Company, is dedicated to catalysing private investments in sustainable agriculture and agri-businesses in developing countries. Yvonne Chileshe, Expert on Value Chains at OACPS stated “The OACPS is happy to support this 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.” This investment in NBS Bank Plc aligns with its mission to unlock, accelerate, and leverage sustainable investments in medium, small, and micro agri-enterprises (MSMEs) that operate in developing countries, with a specific focus on smallholder inclusiveness.
Rodrigo Madrazo, CEO of EDFI Management Company said: “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 driving sustainable growth in the region.” This investment will have a significant impact on smallholder farmers by facilitating access to financing and resources that will help improve their productivity and livelihoods.
NBS Bank Plc continues to offer a wide range of products for individuals, SMEs, and corporates, as well as certain insurance products. The bank’s extensive network includes 26 branches and over 2,100 agents, ensuring accessibility and convenience for its customers across the country.
Dr. Kwanele Ngwenya, CEO of NBS Bank Plc concluded: “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 economic growth of our country.”
About NBS Bank Plc
NBS Bank is a fully-fledged commercial bank providing various financial services to individuals, small and medium businesses, large corporations, and public institutions. The bank was incorporated as a limited company on 14th March 2003 and started its commercial banking operations on 1st July 2004. NBS Bank is listed on the Malawi Stock Exchange and has a wide service network across the country.
About EDFI Management Company
EDFI Management Company (EDFI MC) is a multilaterally owned impact asset manager which delivers innovative development finance solutions that enable European DFIs, development banks and private sector investors to increase the scale and impact of their work. The company focuses on business models, technologies and geographies where other investors have not been able to operate at the desired scale given their resources and investment criteria. AgriFI, the EU Agriculture Financing Initiative, is an impact investment facility funded by the European Union, managed by EDFI Management Company, with a mandate to unlock, accelerate and leverage sustainable investments in medium, small and micro agri-enterprises (MSME) that operate in developing countries, with a specific focus on smallholder’s inclusiveness.
For more information, visit www.agrifi.eu and www.edfimc.eu.
About EDFI AgriFI – Regional Window for ACP countries
EDFI AgriFI – Regional Window for ACP countries, is a dedicated investment window within EDFI-AgriFI allocated to invest in entities operating specific agriculture value chains in African, Caribbean and Pacific countries. For more information, visit https://www.businessacp.com and https://www.oacps.org/
