Financial Inclusion Key to Crime Prevention in Malawi, Says Governor

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Economic Recovery and Challenges

Reserve Bank of Malawi Governor Dalitso Kabambe emphasized the importance of financial inclusion in preventing crime during the inaugural Financial Inclusion Indaba and launch of the National Strategy for Financial Inclusion. The country’s economy has weathered major shocks and is now steadily recovering.

Economic Performance

The governor noted that inflation has remained high over the years, interest rates were also high, and Kwacha was volatile. However, the Malawi economy has now stabilized, with:

• Inflation at its lowest in seven years
• Foreign exchange reserves above three months of imports
• Lending rates on a downward trajectory
• Growth expected to rebound to 4.5 percent or higher this year

Financial Inclusion Crucial for Economic Growth and Job Creation

Kabambe highlighted that financial inclusion is critical in addressing issues such as:

• Access and cost of capital for all Malawians
• Growing and creating jobs, especially for youths
• Intelligent investments necessary to develop the economy

Reserve Bank of Malawi Initiatives

The Reserve Bank of Malawi has taken steps to promote financial inclusion, including:

Regulatory Reforms

• Modernizing existing laws
• Introducing mobile money banking

Financial Inclusion Initiatives

• Microfinance Processing Hub
• Automated Trading System

Consumer Protection and Financial Literacy

• Unit responsible for financial consumer complaints and literacy matters

Strategy for Financial Inclusion

Kabambe congratulated the Ministry of Finance, Economic Planning and Development for coming up with the 2016-2020 Strategy for Financial Inclusion. He commended the strategy as building on the shortfalls of the initial strategy.

Conclusion

The governor thanked attendees for their attention and expressed hope that God blesses the country.