By Deogratias Mmana:
Malawi Stock Exchange-listed National Bank of Malawi (NBM) plc has reaffirmed its commitment to contributing to the growth of the small and medium enterprises (SMEs) sector in the country.
The bank says SMEs play a pivotal role in growth of the economy, hence heeding enormous support from financial institutions.
NBM Chief Executive Officer Macfussy Kawawa said this on Wednesday night when the bank hosted SMEs sector players to a cocktail party in Lilongwe.
“SMEs employ the majority of those that are employed. They provide the majority of jobs that are available. They also contribute significantly, up to about 40 percent, to the country’s GDP [gross domestic product].
“As a bank, we realise that if we engage with this sector, then we are engaging with 40 percent of economic activity. Therefore, it makes meaningful our intermediation role as a commercial bank,” Kawawa said.
He said the bank is also expanding to other countries like Tanzania.
“We are currently searching within the region and we do believe that, within the next few years, we will expand beyond Malawi and beyond Tanzania,” he said.
Kawawa, who is retiring this year, said the bank has grown tremendously during the 26 years of his service.
“I have grown in National Bank. As I retire, I have spent the past 12 years or so at the executive level and therefore I have been part of the strategy formulation with the guidance of the board and one major achievement that I would cite would simply be the growth of the bank.
“Five years ago, our profitability was below K20 billion. Now before tax it is over K100 billion and this is a major achievement,” said Kawawa, adding that he does not have any regret as he retires.
A representative of the SMEs, owner of La Luna Lodge in Area 47, Alexander Bulirani, said the SME engagement was important as SMEs have to deal with banks.
He said for SMEs to benefit from the bank, they need to register their businesses and become customers of the bank.
“You need to have the discipline of making sure that each money you get, no matter how little, is taken to the bank before you spend it. This is where you start to engage with the bank,” Bulirani said.
