By NyasaAuthor1
Copyright nyasatimes
National Bank of Malawi (NBM) plc, in partnership with Portland Cement Malawi Limited, has launched a cement distributors’ financing solution aimed at empowering retailers and distributors in the construction sector.
The initiative, launched under the theme ‘Building Malawi Together: A Landmark Partnership for Growth’ on Friday, is set to enhance access to affordable credit in anticipation of increased cement supply from Portland Cement’s soon-to-be-commissioned Balaka Integrated Cement Plant.
Speaking during the launch ceremony, NBM plc Head of Retail Banking Division, Oswin Kasunda, described the partnership as a significant milestone that underscores the Bank’s commitment to driving growth in Malawi’s construction industry.
“This is indeed a landmark partnership, and that phrase has been repeated time and again for good reason. It underlines our shared commitment to stimulate growth and development in the construction sector,” said Kasunda
Kasunda emphasised that the Memorandum of Understanding (MoU) signed between the two institutions is a strategic response to existing industry challenges such as distribution inefficiencies, cash flow constraints, and limited financial options for small and medium players.
“This strategic partnership demonstrates our mutual commitment to foster economic growth, recognizing the critical role cement plays in the construction sector. The role of the Bank is to provide financial facilities, while Portland Cement Malawi Ltd. focuses on production, and the two institutions have signed a Memorandum of Understanding to enable distributors, retailers, homebuilders, and contractors to obtain credit from National Bank to continue growing their businesses.”
“One of the standout features of this partnership is a credit package tailored specifically for Portland Cement Malawi, distributors and retailers. The package includes payment guarantees and overdraft facilities, with a maximum limit of K100 million being offered without the need for collateral,” said Kasunda.
Portland Cement Malawi Ltd, Chief Executive Officer (CEO) Liu Alex Jianguo emphasised the importance of partnerships in empowering distributors and retailers.
“As we prepare to commission our Balaka Integrated Cement Plant next month, with a capacity of 800,000 tonnes per year, this partnership with National Bank of Malawi plc ensures our distributors and retailers are empowered and equally ready. Together, we are building resilience, unlocking opportunities, and contributing to Malawi’s Vision.” Said Jianguo.
One of the customers of Portland Cement Malawi Ltd, Bosco Twaibu, expressed optimism about the new partnership between Portland Cement Malawi Ltd. and NBM plc, stressing its potential to enhance their business operations.
“As I manage this business, everything else is progressing smoothly. But with the support of National Bank of Malawi plc, we will be able to broaden our vision, and I am confident that our business will grow and expand,” said Twaibu.
