NBM plc, Portland Cement team up to cut cement imports

National Bank of Malawi (NBM) plc and Portland Cement Malawi have reaffirmed their commitment to rolling out initiatives that strengthen the country’s cement supply chain, improve access to financing for distributors, and reduce reliance on imported cement.

The collaboration follows the signing of a Memorandum of Understanding (MoU) between the two institutions in Blantyre in October last year, aimed at supporting procurement, transportation, wholesaling, and retailing of cement products nationwide.

Speaking on the ongoing partnership at the cocktail event in Lilongwe on Friday, NBM plc Board Chairperson Grant Kabango said the MoU has established a strong relationship between the bank and the cement industry through Portland Cement.

“The idea is to facilitate the procurement, distribution, transportation, wholesaling, and retailing of cement products. Our colleagues at Portland Cement have established a production plant in Malawi, which is now feeding into the national supply line. As a result, Malawi can significantly reduce the importation of cement from other countries, thereby conserving foreign exchange,” said Kabango.

He added that the Bank has established a number of financial facilities suited to each stage of the supply chain.

“Transporters are now able to acquire what they need, while distributors and wholesalers are also accessing the financing required to ensure that their businesses operate smoothly,” he said.

He added that since signing the MoU in October last year, about K3.2 billion has already been utilised in Blantyre alone.

“We are seeing strong demand coming through, and that is why we have now moved into the Central Region because of the promising results recorded in Blantyre. Portland Cement has also opened a depot in Kanengo, which means we anticipate receiving even more financing requests from businesses requiring support through the National Bank of Malawi plc,” he said.

Kabango emphasized that cement is not a seasonal product and explained that the bank is fully prepared to finance supply chain activities whenever client’s approach, noting that it has adequate resources to meet the growing demand.

Portland Cement Chief Executive Officer (CEO) Jianguo Liu emphasised, the impact of the Balaka plant on cement production.

“After we commissioned our Balaka plant, we have increased cement production. Our Balaka plant alone has increased cement production capacity by 800,000 tonnes per year. By our estimates, that represents almost 60 to 70 percent of the country’s total cement consumption as of last year,” said Liu.

He added that the partnership with NBM plc is expected to make it easier for distributors and retailers to access financing, both through credit and improved cash flow management, ultimately fostering mutual growth.

On investment, Liu revealed that the Balaka plant cost 100 million US dollars, or about K200 billion .

“The plant has already been commissioned. This means Malawi now has enough cement production capacity. We are confident that we can provide a reliable cement supply and avoid shortages,” he said.

Portland commissioned its cement manufacturing plant in Balaka District with capacity of 200,000 metric tons.