Minister of Finance, Simplex Chithyola Banda, has urged banks to lead in effecting financial inclusion as it is a key enabler in poverty eradication and a prosperity bolster.
The Minister said this at the close of the 9th Annual General Meeting of the Bankers Association of Malawi in Mangochi.
There, he praised the gathering’s focus as a commendable step towards supporting the National Financial Inclusion Strategy, which the government is pursuing for economic recovery and sustainable growth.
Chithyola Banda said the Malawi Government realises that the growth of banks in the country is critical in facilitating the development of the private sector.
He added that it was worrying to note that Micro, Small and Medium Enterprises (MSMEs), despite being a driver of social stability and resilience, often face barriers to accessing finance.
“We urge the Reserve Bank of Malawi and other key policy makers to focus on developing basic financial and digital infrastructure, addressing capacity constraints, and unlocking bank financing,” he said.
According to Chithyola, a step further, leveraging non-bank financial intermediaries and carefully considering the need for concessional financing are also crucial strategies.
He observed millions of people are yet to be banked, saying this is disheartening as it makes financial decisions difficult, citing as examples payments, savings, credit and insurance.
Chithyola has however commended BAM for the focus of the AGM saying it was in tandem with sustainable development goals which has identified financial inclusion as an enabler for 7 of the 17 SDGs.
