National Bank of Malawi (NBM) and Portland Cement have signed a Memorandum of Understanding (MoU) that will enable Portland Cement customers, including distributors, retailers, and builders, to access credit facilities of up to K100 million.
In the past, Portland Cement entered into credit arrangements with its customers, but that will no longer be the case, as NBM will provide guarantees, overdrafts, and digital platforms at concessional rates without collateral.
Speaking during the launch, NBM’s Head of Retail Banking, Oswin Kasunda, said this has just started with the southern region and will also be rolled out in other regions.
“Although we have launched today, we have already started doing business under this arrangement and so far, 54 customers have already accessed facilities amounting to K1.6 billion and I know that soon we will reach up to K4.6 billion, and I am sure higher amounts will be reached,” Kasunda said.
“For the bank, this is good business for us and we expect that more customers will come in,” Kasunda said.
Portland Cement Chief Executive Officer Jianguo Liu described the partnership as fruitful to their business and their stakeholders, who will find it easier to transact.
“We are growing our capacity and we are serious about finding opportunities to start exportation, and we may start exporting after we satisfy Malawi’s demand, probably from this year,” he said.
The partnership has been made under the theme, Building Malawi Together: a landmark partnership for growth.
