The country’s commercial banks say they remain resolute to continue contributing towards national growth and development as a key feeder in the other sectors of the economy.
Under its umbrella body, Bankers Association of Malawi (Bam), the country’s eight banks say amid immense challenges facing the operating environment, they remain resilient and will keep up the pace in contributing towards recovery and growth.
Bam President, who is also Standard Bank Chief Executive Phillip Madinga said at the heart of Malawi’s economic landscape, “the banks stand as more than mere financial intermediaries”.
“They are architects of progress, weaving together threads of prosperity, stability and social impact,” Madinga said.
Available figures show that in the 2023-24 financial year alone, for instance, the banking community contributed a combined K279.1 billion in tax revenue, singled out as one of the top contributors.
According to Malawi Revenue Authority data, of the K353.1 billion total corporate tax for the year under review, the banks contributed K210.7 billion, representing 60 percent.
Madinga then said over the years, the corporate income taxes have constituted a significant part of the banking industry’s tax obligations.
“When banks thrive, they contribute significantly to government coffers.
“These funds flow directly into public coffers, supporting essential services such as education, healthcare and infrastructure,” he said.
Further, he touted the sector’s role in creating employment in the economy, with figures he provided suggesting that, collectively, the sector is employing over 4,912 people.
Beyond direct hires, Madinga said banks stimulate employment indirectly as they boost employment indirectly by financing businesses, infrastructure projects and community development.
He said the banks have also remained pivotal in channelling resources towards corporate social investments, having contributed K1.1 billion in the first half of the year.
The sector has also remained a feeder into other sectors, with loans and advances granted to various key sectors of the economy totalling K106.89 billion in the first quarter of 2024.
Of the amount, about K61.3 billion was channelled as personal loans while the agriculture sector got K19.4 billion, the construction sector got K16.1 billion, the manufacturing industry got K4.9 billion, tourism sector got K3.4 billion, real estate sector got K1.5 billion and the mining sector got K289.9 million.
Madinga said banks remain among the biggest enablers of the country’s economy, with their critical role in supporting public services and economic stability.
