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European Investment Bank injects US$40.5 million into Malawi's agricultural sector

The European Investment Bank is seeking to strengthen the Malawi government’s policy to diversify and increase exports in the country by distributing US$40.5mn to its agricultural sector

The support, which will be given to the export agricultural companies under a new lending programme run by First Merchant Bank (FMB) in Malawi, is expected to enhance processing of agricultural products prior to export, the bank said.

"The European Investment Bank is pleased to resume engagement in Malawi as part of our broadening engagement to support private sector investment across southern and eastern Africa," stated Pim van Ballekom, vice-president European Investment Bank.

The European Investment Bank, which has been operating in Malawi since 1997, has invested a total of US$230mn in the country's cement, sugar and tea industries, it revealed.

"Increased investment by private sector companies processing agricultural produce can enhance exports and create jobs for Malawi - if given the policy space required for the private sector to function efficiently," said Dheeraj Dikshit, managing director of FMB in Malawi.