By Dean Chisambo……..
Nation Bank of Malawi (NBM) and Portland Cement Company Limited have signed a Memorandum of Understanding (MoU) aimed at reducing cement imports and conserving foreign exchange through enhanced local production.
The partnership was unveiled during a stakeholder cocktail event held in Lilongwe and will see NBM providing liquidity financing to support the procurement, distribution, and retailing of Portland Cement products across the country.
NBM Board Chairperson Grant Kabango said the collaboration is a strategic move towards promoting local manufacturing and easing pressure on foreign currency reserves.
“Our colleagues at Portland Cement have established a production plant right here in Malawi, which is supplying the local market and significantly reducing the need for imports,” said Kabango.
He added that NBM has put in place financial facilities covering the entire cement supply chain—from procurement to distribution—with about K3.2 billion already utilized in Blantyre alone.
On his part, Portland Cement Company Chief Executive Officer Liu Jianguo said the partnership will empower distributors and retailers by improving access to financing, enabling them to expand their operations.
Jianguo noted that the company’s Balaka plant has an annual production capacity of 800,000 tonnes, which is sufficient to meet Malawi’s cement demand. He further revealed that the company has invested approximately US$100 million in the plant to ensure a stable and reliable cement supply in the country.