Reserve Bank of Malawi (RBM) Governor Dalitso Kabambe has called on commercial banks to start financing development projects or innovations that will boost the country’s economy.
Speaking on Friday in Mangochi during the Institute of Bankers (IoB) Malawi annual lakeshore conference, the governor singled out manufacturing, mining and tourism as some of the sectors banks need to invest in to complement the agriculture sector to rebalance the economy.
Kabambe observed that the country’s economy largely depends on agriculture which needs availability of rains, but due to climate change, the country has over the past years been failing to grow its economy.
“It’s high time banks started investing seriously in manufacturing. There are a number of good projects and ideas that are coming up from public sector entities and individuals,” he said.
On mining, Kabambe said there are prospects of mining opportunities in the country, which banks can collaborate with investors.
In his remarks, Bankers Association of Malawi president Kwanele Ngwenya, who is also Malawi Stock Exchange-listed NBS Bank plc chief executive officer, said as bankers, they will strive to implement bankable development projects and offer services that will benefit Malawians.
He cited the current reduction in interest rates from 37 to around 24 percent and financial inclusion, among others, as positive developments in the banking sector.
On the significance of the conference, Ngwenya said it would help participants to share knowledge that will help to improve the banking sector. The conference was held under the theme: Financial Sector Synergies: A Catalyst for Financial Inclusion.