African Trade Insurance Agency (ATI) has partnered Bankers Association of Malawi (BAM) and Reserve Bank of Malawi (RBM) to unveil an insurance product that will help commercial banks to increase their lending to local companies.
The product will be launched tomorrow in Blantyre.
This means that under ATI’s insurance cover, commercial banks will be offering a broad range of products to support companies by providing them with credit.
The product allows commercial banks’ clients to bridge the gap between completing a contract and receiving payment, enabling the bank to use ATI’s insurance as security, according to a statement made available to Business News.
Pizzaro Lukhanda, ATI’s Zambian-based underwriter for Malawi and Zambia, said: “We are targeting [commercial] banks as the most efficient way to benefit the greatest number of people within our member countries.”
In 2014, ATI helped Malawi to attract $175 million (K99 billion) worth of investments in infrastructure and telecommunications sectors and $90 million (K51 billion) worth of trade in the agriculture sector.