RBM GOVERNOR CALLS ON BANKS TO INVEST ON PROJECTS – Malawi News Online

During the Institute of Bankers (IoB) Malawi annual lakeshore conference, the governor of Reserve Bank of Malawi, Dalitso Kabambe, urged commercial banks to financing development projects or innovations that will boost the country’s economy.

Kabambe recommended manufacturing, mining and tourism as some of the sectors banks need to invest in to complement the agriculture sector to rebalance the economy, pointing that investments in the agriculture sector has been most favored in investment.

“In terms of banks, they have to focus on sectors such as mining, transport, tourism, manufacturing, in line with Malawi Growth and Development Strategy. It is also high time banks started investing in promising business ideas. In other countries, commercial banks single out students with brilliant ideas, finance such ideas until such a time the idea starts attracting investors. That is the way to go,” Kabambe said.

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% and financial inclusion, among others, as positive developments in the banking sector.