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Malawi Takes Steps Towards Financial Inclusion and Crime Prevention

As part of its efforts to accelerate progress towards the United Nations Sustainable Development Goals (SDGs), Malawi is strengthening its financial inclusion initiatives, with a focus on crime prevention and poverty reduction.

A Refreshed Strategy for Financial Inclusion

The country has launched a refreshed strategy to enhance access to financial services, improve household resilience, and promote inclusive growth. The United Nations Capital Development Fund (UNCDF) has been working closely with the Government of Malawi to develop a comprehensive plan for financial inclusion.

Key Barriers to Financial Inclusion

The 2015 National Strategy for Financial Inclusion identified key barriers to greater financial inclusion, including:

  • Limited access to payments
  • Savings
  • Credit
  • Insurance

To address these challenges, the report recommended:

  • Expanding the reach of payments
  • Leveraging village savings and loan associations (VSLAs) to enable savings
  • Targeting finance for micro, small and medium enterprises (MSMEs) and farmers
  • Niche insurance opportunities

Digital Financial Services: A Game-Changer

The updated MAP report by UNCDF reviews the implementation of the 2015 diagnostic and considers key market changes. The report identifies financial inclusion interventions that can grow the economy and benefit society, including digital financial services, which are expected to improve the scale and efficiency of financial inclusion interventions.

Crime Prevention Through Financial Inclusion

The initiative also focuses on crime prevention, recognizing that financial inclusion can play a vital role in reducing vulnerabilities and promoting stability. By increasing access to financial services, Malawi aims to reduce the risk of criminal activity and promote economic growth.

SDG Alignment

Malawi’s commitment to financial inclusion and crime prevention is part of UNCDF’s efforts to support country efforts towards achieving SDG 1: eradicate all forms of poverty, wherever it exists. The initiative also aligns with the G20 leadership on financial inclusion, which highlights the ongoing relevance of the SDGs and nationally led financial inclusion efforts.

Expected Impact

Malawi’s commitment to financial inclusion and crime prevention is expected to have a positive impact on the country’s economy and society. By increasing access to financial services, the government aims to:

  • Create employment opportunities
  • Improve household welfare
  • Promote inclusive growth

This initiative demonstrates Malawi’s commitment to achieving sustainable development and promoting economic stability through financial inclusion and crime prevention.