The Reserve Bank of Malawi (RBM) is developing a microfinance hub, which will link transactions of all microfinance institutions’ (MFIs) to ease data collection.
RBM spokesperson Mbane Ngwira said in an interview last week the system was already designed and submitted to the World Bank, the financiers of the project, for assessment before roll out.
“We are just waiting for World Bank to finish its assessment on the proposed supplier of the service, and once they finish and are happy with the proposed supplier, the project will roll out.
“We realise that not all credit cooperatives have capital for the management of the system because it is costly; hence, this project to support them,” he said.
Ngwira said the system is secure to protect transactions.
Malawi Union of Savings and Credit Cooperatives (Muscco) chief executive officer Sylvester Kadzola said MFIs are an important sub-sector of the financial system as they play a significant role in supporting access to finance and financial inclusion.
He said microfinance institutions are an added advantage to the financial inclusion; hence, the hub is a welcome initiative.
Said Kadzola: “There is need to set aside something for the future, which is key among objectives of microfinance institutions such as Saccos [savings and credit cooperatives].”
He said MFIs, including Saccos, continue to positively impact on the lives of many people, with a membership of close to 100 000 and savings in excess of K6 billion.
“It is the convenience that we are looking for and this hub stands to provide that convenience.
“Instead of MFIs investing a lot of money to put up the system, it is pleasing that government has come in to boost our operations,” he said.