RBM calls for joint efforts in raising awareness on credit reporting

The Reserve Bank of Malawi (RBM) has urged all stakeholders in the financial sector to collaborate to raise awareness about financial literacy, credit reporting, and asset-based lending.

RBM Governor MacDonald Mwale made the remarks on Tuesday during a financial literacy campaign launch in Blantyre.

The campaign, set to run for a year, aims to increase the use of the Credit Reporting System and Collateral Registry while promoting the development of a movable asset-based lending market.

According to RBM data, the banking sector’s lending ratio currently stands at 34.5 percent.

Mwale emphasized that the campaign will focus on educating low-income earners about the fundamentals of credit reporting.

“This awareness program is part of a broader initiative to expand access to formal financial services to 95% of the country’s adult population by 2028, in line with the Malawi National Strategy for Financial Inclusion (NSFI) III,” Mwale stated.

He further noted that using personal property-secured transactions remains low, underscoring the need for increased participation.

International Finance Corporation (IFC) representative Maissa Abdalia highlighted that, with support from the governments of Ireland and Norway, the campaign will help develop Malawi’s asset-based lending market and enhance the use of the country’s collateral registry.

“Financial literacy is a key component of the overall credit information system, as it involves understanding and effectively using various financial skills, including personal financial management,” she added.

Meanwhile, Deputy Registrar General Joseph Chintolo has encouraged the public to utilize credit facilities that accept movable assets, including livestock, as collateral.

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Grace Kantchentche – Donga

Grace Kantchentche Donga is a professional journalist based in Malawi with over 15 years of experience in the media industry. Her work focuses on reporting and storytelling of key social, health, political, and economic issues, among others. She is passionate about transparency and development.

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