Loita Investment Bank Limited on Wednesday signed a US$ 5 million (about K500, 000 million) Import and export Finance Facility Agreement with the Development Bank of Southern Africa (DBSA).

Both parties have described this move as a milestone and big boost to local business people.

Loita Investment Bank chief executive officer Jacques de Jager said the K5 billion fund is going to help his bank offer loans to its customers, especially those engaged in import and export business so that they can boost their businesses on one hand and the economy of the country on the other. He said Malawi's economy is experiencing some growth and as such there is potential for business, adding that his bank is ready to give support to enterprising business people. De Jager said the facility was arranged by Loita Capital Partners International, winners of the Best Financial Consultancy in Africa 2004 award issued by Africa investor magazine.

He noted that the facility not only demonstrates the faith the DBSA places in Loita Investment Bank Limited, but also in the positive economic prospects for Malawi. “This is a very positive step for us, and indeed for the economy of Malawi. This facility will be used to offer structured financing to qualifying borrowers based in Malawi and is the first such facility offered by Development Bank of southern Africa through a Malawian Bank,” he said after the signing ceremony held at Mulika Club Blantyre. Vice President of the DBSA responsible for private sector and international investment Lewis Musasike said the facility is for an initial five-year period.

D. Jager (L) and Musasike exchanging documents after signing – Pic. Claude Simawaka