RBM says 35% of Malawi population is financially illiterate
Reserve Bank of Malawi – RBM Director for Financial Sector Regulations Dr. Sopani Gondwe has said 35 percent of Malawians are financially illiterate and does not use formal financial services including bank accounts for savings, loans and economy management.
Gondwe was speaking on Monday during the opening on training workshop of Community Financial Educators who work under Ministry of Gender as Community Development Officers.
Gondwe revealed that 2023 financial literacy and capability survey indicates that the country is improving as number of financial literate citizens was at 45 percent in 2018 and now 65 percent.
“We as policy makers we still have 35 percent of people excluded from formal financial sectors, hence need to reduce that numbers,” advised Gondwe.
On financial inclusion, RBM Director of Financial Sector Regulations express expectations that training of financial educators shall help to impart knowledge on financial management to communities in their respective districts of duty stations.
“Financial inclusion allows more people and citizens be economically empowered and be able to make better financial decisions, investments and choices and understand their rights.” He added.
Therefore, he said establishment of financially stable communities is one key to economic growth and national development.
Meanwhile, Director of Community Development in the Ministry of Gender, Community Development and Social Welfare Clotilda Sawasawa explained that training of various district educators will equipment communities whom they serve with informed decisions on financial matters.
“Malawi 2063 agenda pillar number 5 entails effective governance systems and institutions with strict adherence to the rule of law of which it’s indicators are economic resilience and allows individuals to economically empower themselves, so is this training is about,” said Sawasawa.
In his comment, Wesley Saidi District Community Development Officer from Mwanza expressed gratitude for taking a course on financial literacy, as it will help him to teach others including village savings, loan and banking groups to ensure sustainability.
Saidi said, “Most people when they have money they go through shortcuts and it derails the progress of their use of finances to boost businesses, and after this training we will ensure to educate communities.”
The Reserve Bank of Malawi’s financial literacy programme is transformative which targets all districts across the country.
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