Reserve Bank of Malawi says economy recovering, forecast robust growth

The Reserve Bank of Malawi (RBM) has disclosed that the economy now is recovering from the shocks that it has had over the past five years such as that of major devaluation in 2012, Cashgate in 2013 and weather vulnerability in 2015 and 2016.

Kabambe: Focus now should be on robust economic growth

Malawi has just successfully weathered off from the shocks of the past, according to the RBM Governor Dr. Dalitso Kabambe.

Kabambe was speaking in Lilongwe Thursday during the inaugural Financial Inclusion Indaba and Launch of the National Strategy for Financial Inclusion (NSFI) at Bingu International Conventional Centre (BICC).

He said currently the country’s economy is on a very good foot and is fully recovering from all the shocks.

The Governor said the country’s focus should be on how to grow the economy. Therefore, he called for a collective responsibility to ensure steady and sustainable growth of the country’s economy.

“This launch of the financial inclusion is to see to it that the financial and banking sector reach out to those that failing to access banking services and how best they participate in these services.

“Maybe as entrepreneurs, how do we ensure that every single Malawian in the country is part to the financial sector activities so that we move our country forward and that the country can produce more output, create more jobs and ensure that we create wealthy for prosperity of our nation,” Kabambe said.

He further highlighted some concerns from the public on the high rate of interest in commercial banks and other service providers in the banking and financial sector.

Kabambe pointed out that the nation is coming from a very difficult and challenging period inflation rate was always high resulting high cost of services and goods.

But he was optimistic that with the economy recovering, interest rates in the banks will continue to simultaneously go down with the inflation rate.

He said there is a need to work very hard so that the country continues to bring down the rates and as RBM is reducing the policy rate, commercial banks, microfinance institutions should also do the same in bringing their rates down.

“We have gone further to set up a task force that is specifically working and focusing on how banks can reduce their spread,” he said.

Secretary to the Treasury Dr Ben Botolo said the objectives of the indaba was to bring together policy makers, financial sector stakeholders and development actors to discuss opportunities and challenges in the financial sector that need attention.

He said the strategy which replaces the 2010 – 2014 Strategy aims at supporting economic growth and improving household welfare.

The indaba’s theme was ‘accelerating financial inclusion for sustainable economic growth and poverty reduction’.

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