Movable Asset-based Lending Unlocks Credit in Malawi

Low access to credit features prominently as one of the major setbacks in the business sector but this is slowly losing grip, thanks to the growing confidence among banks in the use of movable assets as collateral.

A transformative intervention by Reserve Bank of Malawi (RBM) with support from the World Bank through International Finance Corporation (IFC) has seen increased awareness of existing legal instruments that support the system.

Media practitioners had a glimpse of the new norm when they were recently sensitised during a media workshop in Blantyre, marking the launch of the second phase of the national consumer education programme.

“This phase focuses on deepening public understanding of the Collateral Registry and Movable Asset-Based Lending (MABL) to unlock broader access to credit for individuals and Micro, Small and Medium Enterprises (MSMEs),” a statement on the campaign reads.

As part of the launch, editors and journalists from various media houses participated in a Media Education Workshop on Credit Reporting, the Collateral Registry, and Movable Asset-Based Lending.

The initiative is part of a broader campaign to improve financial literacy, promote the use of credit reports, and support MSMEs in accessing finance using movable assets such as equipment, inventory, and receivables.

In Malawi, only 34% of the adult population are using formal financial services, while many Malawians rely on mobile wallets and informal credit systems for their financial transactions.

To achieve greater financial inclusion, the Malawi National Strategy for Financial Inclusion (NSFI) III aims to increase access to at least one formal financial service to 95% of the country’s adult population by 2028, and reduce financial exclusion from 12% to 5%.

During the workshop, representatives from National Bank of Malawi and NBS Bank highlighted that availability of lending products that use movable assets as collateral is expanding, providing easier access to credit. It was shared during the workshop that banks in Malawi are increasingly offering innovative lending solutions tailored for MSMEs.

“Movable Asset-Based Lending is becoming a practical tool for unlocking capital where traditional collateral like land or buildings may not be available. This campaign is helping to raise the visibility of these options,” the statement reads.

Also commenting on the programme’s impact, Dumisani Kadango, Country Manager for TransUnion Malawi, noted a marked shift in consumer behaviour.

“In the first quarter of 2025 alone, we’ve seen a noticeable 35 percent increase in CRB requests – demonstrating an increase in the number of Malawians requesting their credit reports and querying the information therein. This is a clear indication that more people are beginning to understand the value of maintaining a good credit history and the role it plays in accessing finance,” said Kadango.

Alfred Mtira, Marketing Officer for Credit Data CRB, said since the initial launch of the campaign, they have conducted numerous consumer education sessions across the country, including at universities, and the response has been overwhelming.

“It has become clear that there is still a significant knowledge gap when it comes to credit reporting and how it affects access to finance,” he said.

The ongoing campaign to empower consumers with knowledge about their credit rights and the financing opportunities available to them, while encouraging greater trust and engagement with Malawi’s financial infrastructure.

The campaign is supported by international donors and implemented through a multi-stakeholder working group.

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