By Dyson Mthawanji
The Government of Malawi, through the Reserve Bank of Malawi (RBM) on September 23rd launched the National Financial Literacy and Capability Strategy (2024-2030) in the country’s capital city, Lilongwe. The Strategy comes at a time Malawi has tightened its belt on the road towards fulfilment of its development blueprint, the Malawi Vision 2063.
Speaking during the launch, the RBM Governor Wilson Banda said financial literacy is a critical pillar in achieving the Malawi Vision 2063.
“This Strategy is not just a framework, but a commitment to ensuring that every Malawian, regardless of their background, has adequate financial knowledge to help them participate actively in the financial system.”
The Malawi Government’s commitment to financial inclusion is evident in the policies and programmes that have been established in recent years, such as the National Financial Inclusion Strategy, the Financial Sector Development Strategy, Microfinance Policy as well as other initiatives that have laid a strong foundation for inclusive finance.
“However, there is still more work to be done to ensure that all Malawians, especially the underserved populations, are not left behind … financial literacy is not merely about understanding financial products; it is about empowering individuals and communities to make informed financial decisions that can improve their livelihoods and contribute to the country’s economic growth and development.”
Inclusive finance is an essential instrument for increasing agricultural productivity, starting or expanding Micro, Small and Medium Enterprises (MSMEs), creating employment, increasing household income and smoothing consumption. Banda said it is for this reason that the Malawi Government through the RBM developed the National Financial Literacy and Capability Strategy.
According to Banda, the Strategy aims at empowering Malawians with knowledge and skills to enable them make informed financial decisions and take effective actions for improved financial well-being by 2030.
The Strategy outlines a number of key priorities which include:
- strengthening financial literacy programmes for members of village banks, farmers and MSMEs
- raising awareness of digital financial services in safe and secure manner, and enhancing credit discipline, and
- encourage access and usage of credit from formal financial institutions.
To ensure that the underserved segments of the population are reached, the Strategy emphasizes the implementation of financial literacy initiatives for people living in rural areas, women, youth, farmers, persons with disabilities, forcibly displaced persons, internally displaced persons and MSMEs.
The emphasis on vulnerable and frequently marginalised groups reflects the Malawi Government’s commitment to leaving no one behind. Empowering these groups with financial knowledge and skills is key to achieving Malawi’s vision of a prosperous country.
To ensure the programmes’ effectiveness, a training curriculum and financial options handbook have been developed. The curriculum includes modules on business formalisation, financial planning, budgeting, savings and investments, debt management, wealth protection, digital financial services, agency banking, and consumer rights and responsibilities.
The programme is being implemented through financial educators which the Reserve Bank, in conjunction with the Ministry of Gender, Community Development and Social Welfare, has trained to deliver the curriculum in their respective districts.
Germany’s Deputy Head of Mission, Andreas Hartmann, commended Malawi’s efforts, stating:
“Bridging the financial literacy gap is key for the future of all developing countries.”
He reaffirmed Germany’s commitment to supporting Malawi’s financial education through ongoing partnerships.
President of the Bankers Association of Malawi, Philip Madinga, highlighted improvements in financial inclusion, currently at 88%. However, he emphasised the need for improved convenience in banking services, saying:
“We need to do more to improve convenience for our customers.”
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