By Benadetta Chiwanda Mia:
The Reserve Bank of Malawi (RBM) has said there is an improvement on credit management practices.
This follows the launch of a national public awareness campaign to enhance financial literacy and awareness around credit reporting by RBM in partnership with World Bank’s Internationa l Finance Corporation (IFC).
In an interview, RBM’s Chief Examiner and Consumer Protection and Financial Literacy Officer Madalitso Chamba said the initiative focuses on enhancing access to credit, particularly for small and medium enterprises (SMEs), which are seen as the backbone of the country’s economy.
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“To develop our economy, we need a vibrant SME sector. However, access to credit remains a significant hurdle, and mismanagement of obtained credit further impedes growth,” Chamba said.
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The campaign aims to increase awareness about the role of credit reports, which detail a borrower’s credit history and repayment behavior.
Chamba stressed that a clean credit report can empower borrowers during loan negotiations.
“A good credit report enhances your chances of securing credit on favourable terms, whereas poor credit history can result in tougher lending conditions. Nobody can develop without credit because most people don’t have enough capital and rely on credit to finance their business, and for this, a good credit history matters,” she said.
This initiative is part of a larger effort by RBM and the World Bank’s IFC to run a six-month public awareness campaign.
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The Credit Reporting Awareness Programme seeks to educate Malawians on the importance of maintaining a positive credit history and encourages them to access their credit reports from credit reference bureaus.
Trans Union Malawi Country Manager, Dumisani Kadango, underscored the importance of credit reports in assessing financial health.
“A credit report shows your borrowing history and current loan status, providing lenders with critical information about your financial reliability,” Kadango said
While the credit market is expanding, Kadango highlighted the need for improved understanding of credit reports among Malawians to enhance overall financial health.
