Opportunity Bank of Malawi shut down branches as economy takes continued nose dive

Opportunity Bank of Malawi (OBM) continues to close down its branches in Malawi as the economy continues to take a nose dive.

Opprtunity Bank will now focus on Agency banking and mobile vans to serve its customers.

Opprtunity Bank will now focus on Agency banking and mobile vans to serve its customers.

The latest is Nsanje branch after Chitipa, Jeenda and Nkhata Bay last week.

Inside sources say the branches are not making money that could meet operating costs.

“People do not have enough money to keep in banks because of the status of the economy. People do not have disposable income or income they can keep, they are eating hand to mouth,” said a source.

OBM deputy chief executive officer Bernard Mkandawire said the bank will instead focus on using Agency banking and mobile vans to serve its customers.

The closure of the bank branches is also coming with retrenchments.

According to sources, officials from the bank go with police to the branches and tell all members of staff out and close down the branches.

It is not yet known how many people are using jobs.

Mkandawire said the bank cannot “rule out staff retrenchments”  BUT could not give the number of members of staff to be affected by the process

Recently FDH Bank retrenched close to 400 employees from Malawi Savings Bank and the FDH. Some companies are also closing down whilst others continue to cut on staff including Times Group which recently retrenched over 70 journalists including journalists due to unfavourable economic climate.

The inflation and interest rates remain high among other factors.

Just two weeks ago, a Chinese run hotel, Peacock Hotel in Lilongwe had 17 vacancies but close to 1000 job seekers turned up for interviews an indicator that jobless is on record high. State run Reserve Bank of Malawi has put close to 100 employees on forced retirement.

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