Less than one percent of Malawi’s adult population has a financial investment, Kenya-based SME Support Centre has revealed.
A financial investment is an asset that you put money into with the hope that it will grow or appreciate into a larger sum of money.
The idea is that one can later sell it at a higher price or earn money on it while they own it.
SME Support Centre Chief Executive Officer Linda Onyango said the development means that over 99 percent of Malawians are left out of financial investment.
“Things like money market. Things that you can get on your phone; 99 percent are out. On top of that, only 24 percent of Malawians are banked. By not being banked, the majority of Malawians are losing out because they cannot access certain levels of money as they grow,” Onyango said.
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Reserve Bank of Malawi (RBM) Director of Financial Services Regulation Sopani Gondwe agreed that, generally, the levels of financial literacy in the country are low.
According to Gondwe, financial literacy improves the welfare of people.
Meanwhile, RBM plans to roll out a financial literacy programme to raise awareness on financial services starting from next month.
According to Gondwe, the campaign will target farmers as well as micro small and medium enterprises (MSMEs).
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“As you are aware, in every country, MSMEs are the backbone of the economy. These are the entrepreneurs. They also employ a lot of people; so, we are trying to raise financial awareness among them, particularly for them to have knowledge of financial products,” Gondwe said.
