Non-banking financial services sector players from the Southern African for Development (Sadc) are meeting Community in Lilongwe under the Sadc Committee of Insurance, Securities and Non-Banking Financial Authorities (Cisna) where talks evolve around building synergies for collective and sustainable growth.
Held under the theme “Breaking Barriers to a Deep and Broad Financial System in the Sadc Region,” the six-day 49th Cisna Annual General Meeting has brought together key regional players in the financial services sector.
It is aimed at fostering regional collaboration and identifying practical strategies for strengthening financial inclusion, enhancing market development, and promoting sustainable economic growth across the Sadc region.
Minister of Industrialization, Business Trade and Tourism Simon Itaye and Reserve Bank of Malawi (RBM) Governor George Partridge were among local officials who attended the Cisna General Council Meeting Tuesday.
In his address at the opening of the indaba, Itaye called for corroboration among regional players as nations continue the push for integration.
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He said institutions that supervise pension funds, insurers, capital markets, collective investment schemes, microfinance institutions, financial cooperatives and other non-bank providers are critical in the Sadc regional growth agenda.
“Together, these sectors hold more than financial assets. They hold people’s hopes: the pension of a nurse, the insurance claim of a farmer, the savings of a cooperative member and the investment of a small business owner.
“Pension funds, insurers and other institutional investors can support infrastructure, renewable energy, manufacturing, logistics, housing and tourism,” he said.
He then called for prudence, saying investment must be supported by sound governance, transparency, accurate risk assessment and accountability.
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According to Iyate, players in the various sub-sectors were duty-bound to ensure that they operate in line with set governance structures to ensure efficiency and effectiveness.
“We should never choose between development and prudence. Our duty is to make prudent finance serve development,” he said.
In his remarks, Partridge said effective regulation and supervision increasingly require cooperation among authorities.
He said the industry needs regulatory and supervisory frameworks that are responsive, proportionate and sufficiently coordinated.
“Non-bank financial institutions are playing an increasingly important role in our economies. They help mobilise long-term capital, broaden access to finance, support investment and contribute to economic development.
This is particularly important for Malawi. Our pension funds, insurance companies and other non-bank financial intermediaries have significant potential to channel domestic savings into productive sectors of the economy and, in doing so, contribute to financing the country’s development priorities,” Partridge said.
Cisna Chairperson Kenneth Matomola said as the non-banking sector faces myriad risks, working together remains key.
