Accelerating Structural Transformation in Malawi
COVID-19 Trade Impact
Mitigation Facility (COTIFA)
1.0 INTRODUCTION
The world is presently battling a pandemic,
Coronavirus (COVID-19) which has posed a threat to
the economy and human life. The effects of the virus
have an estimated potential of costing the global
economy about US$1 trillion which would result in a
significant decline of 0.4 percent points in global Gross
Domestic Product (GDP) growth. A number of sectors
have been affected posing a threat to many African
countries, Malawi inclusive Export Development
Fund has therefore introduced a “Covid-19 Trade
Impact Mitigation Facility (COTIMFA)” towards cushion
the effects of the pandemic.
2.0 PRODUCT RATIONALE
EDF’s Covid-19 Trade Impact Mitigation Facility
(COTIFA) aims at assisting companies in Malawi to
assist companies in Malawi manage the adverse
impact of financial economic shocks caused by
COVID-19 Pandemic. Such an impact may be directly
caused by Pandemic-induced sharp declines in
commodity prices, a sudden significant drop in tourism
earnings, disruptions in supply chains, and/or
closure of export manufacturing facilities. Under this
facility, EDF is intervening through credit and risk
bearing instruments by providing support to companies
which need direct funding, lines of credit, guarantees
and other similar instruments.
The facility is a rapid financial response that will
enable companies to continue carrying out business
while adjusting to the impacts of the Pandemic, as
well as manage effects of the Pandemic during and
after situations normalize specifically by:
• Supporting eligible companies to meet debt pay
ments falling due and prevent payment defaults;
• Providing trade finance facilities for exports in view
of distressed working capital;
• Assisting companies whose revenues are tied to
specific export revenues to manage the sudden
declines of export earnings.
 Covid-19 Trade Impact Mitigation Facility (COTIFA)

Existing Loan facility/Supply Assignment of export

facility proceeds/Loan Repayments
Loan 2 COTIFA 4
Provider/Trade EDF
Client
Debt Payments

Refinancing
3 Facility with
retained
exposure

1 Contingent Guarantees

Partnerships

Input Suppliers

Insurance Companies

Development Financial Institutions

Fund & Asset Managers

Commercial Banks

3.0 PRODUCT FEATURES • Companies that are likely to suffer a decline in

With a K20 billion allocation, the facility is available
for a maximum of 18 months as it is largely driven by
the existence of the Pandemic. The duration shall
be reviewed from time to time depending on
developments in the discovery of a drug or vaccine.
4.0 ELIGIBLE COMPANIES
Export manufacturer and tourism projects with the
following features:
• Companies experiencing significant drop in tourism
earnings; and
export demand as a repercussion of a shutdown
of export markets, sharp price declines, disruption in
supply chains, and disruptions in domestic
productions.
5.0 APPLICATION REQUIREMENTS
a. Business/owners profile;
b. Nature of business and funding requirements.
c. Audited financial statements for the past three years;
d. Financial statement projections;
e. A summary of borrowing history and bank
references;

EXPORT DEVELOPMENT FUND

1st Floor - Pamodzi House, Presidential Way Drive • P. O. Box 30063, Lilongwe 3, Malawi
Tel: +265 (0) 882 415 633 Fax: +265 (0) 1 772 219 E-mail: edf@edf.mw
www.edf.mw