By Burnett Munthali
President Lazarus Chakwera has described the Africa Export-Import Bank (Afreximbank) as a great friend for Malawi.
This statement reflects not just diplomatic courtesy but a deeper acknowledgment of the bank’s growing influence and partnership in Malawi’s economic development.
Afreximbank, a pan-African multilateral financial institution headquartered in Cairo, Egypt, was established in 1993 with the mandate to finance and promote intra- and extra-African trade.
Over the years, the bank has extended vital credit lines and project financing facilities to Malawi, supporting sectors such as energy, agriculture, trade, infrastructure, and industrialization.
President Chakwera’s endorsement comes at a time when Malawi is grappling with immense economic challenges, including a depreciating kwacha, foreign exchange shortages, mounting public debt, and the need for structural reforms.
Through its collaboration with Afreximbank, Malawi has accessed critical financing, including trade credit facilities to support importation of fuel, fertilizers, and other essential commodities.
In 2023, Afreximbank provided a $200 million trade finance facility to Malawi, aimed at cushioning the impact of forex shortages and stabilizing essential imports.
The bank also played a key role in facilitating Malawi’s participation in the African Continental Free Trade Area (AfCFTA), offering technical and financial support for trade readiness.
Beyond trade, Afreximbank has shown commitment to infrastructure development, including financing prospects for energy generation, road rehabilitation, and industrial parks.
One notable example is the bank’s interest in supporting Malawi’s Salima–Lilongwe Water Project and the potential development of Special Economic Zones to spur manufacturing and exports.
President Chakwera has often emphasized the need for partnerships that are rooted in mutual respect, African solidarity, and sustainable impact, a philosophy that aligns closely with Afreximbank’s continental development agenda.
Critics, however, caution that while Afreximbank’s involvement brings critical capital, it also adds to Malawi’s debt obligations and must be handled with transparency and proper fiscal discipline.
They argue that government-to-government or bank-to-government deals, unless properly monitored, can lack accountability and risk mortgaging national resources.
Nonetheless, Afreximbank’s model of development finance stands in contrast to traditional Western donors, offering African countries access to credit with fewer political strings and a focus on African-led growth.
The bank has also invested in capacity building, supporting trade facilitation programs, digital platforms, and knowledge-sharing initiatives across member countries, including Malawi.
For President Chakwera, leveraging institutions like Afreximbank is essential in achieving the Malawi Vision 2063 agenda, which aims to transform the country into a self-reliant, industrialized, and middle-income economy.
As global economic dynamics shift and traditional financing options become increasingly limited, multilateral African banks such as Afreximbank are rising in importance for nations like Malawi.
The future of this partnership depends on sustained engagement, transparent utilization of funds, and alignment with national development priorities.
In calling Afreximbank a “great friend,” President Chakwera has signaled his administration’s confidence in African solutions for African problems — a vision that many in the region increasingly share.
Ultimately, the role of Afreximbank in Malawi’s development trajectory may well become one of the defining stories of regional integration and financial cooperation in the 21st century.
