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Strengthening food security
Project
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Signature date
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Location
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Malawi
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Financing tool
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Financing amount (Euro)
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9273083
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Financing details
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USD 10m guarantee
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Customer
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Ecobank Malawi
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Type of customer
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Financial institution
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Country of headquarters
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Malawi
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Project number
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PMW1006
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Environmental and social ranking
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IF-C
This information is given at the time of signature, without prejudice to any developments in the operation/project.
Proparco has joined forces with a longstanding client, Ecobank Malawi. The project is increasing the capacity of importers in Malawi.
Client presentation
Ecobank Malawi Limited is a subsidiary of Ecobank Group, with which Proparco has built a solid, reliable and dynamic partnership over the years.
Project description
This guarantee will enable the bank to secure confirmations on Letters of Credit for the importation of strategic commodities such as fertilizers, basic foodstuffs and strategic raw materials. It will thus help facilitate the development of trade relations between Malawian importers and international exporters. This facility forms part of the FARM initiative launched by French President Emmanuel Macron in 2022, alongside the European Union, the G7 and the African Union, which aims to strengthen food security in the most vulnerable countries. It will provide a strong response to Malawi’s food insecurity challenges, which have been exacerbated by the Russia-Ukraine war and Cyclone Freddy in February 2023.
Project impact
The project will have a positive impact on food security, poverty reduction, decent work and economic growth. It will thereby contribute to the achievement of three Sustainable Development Goals: SDG 1 (“No poverty”), SDG 2 (“Zero hunger”) and SDG 8 (“Decent work and economic growth”).