New survey to assess financial literacy levels

The Reserve Bank of Malawi (RBM) has embarked on a survey to establish levels of financial literacy in the country.

A statement from RBM indicates that the survey follows a similar exercise conducted in 2014.

RBM said the survey aims to assess the impact of various financial literacy initiatives employed over the past couple of years.

RBM, through the Financial Sector Technical Assistance Project, has over the past years enhanced efforts to increase financial literacy among Malawians.

Among other things, the bank has been implementing various financial literacy, capability and financial inclusion initiatives aimed at enhancing effective personal and household finance management and access to financial products and services.

“The Reserve Bank of Malawi through FSTAP engaged A2F Consulting Group to conduct the survey. They will be assisted by Shawa Diamonds, a local consulting firm. Data will be collected at household level throughout Malawi.

“The information gathered will be used exclusively for planning, policy formulation and intervention designs to improve Malawians’ financial inclusion levels,” RBM said.

Last year, RBM launched the National Strategy for Financial Inclusion as one way of bringing more Malawians into the formal financial system.

RBM Governor, Dalitso Kabambe, said Malawi has many people who have not been yet reached with financial services.

He underscored the need to ensure that all Malawians, regardless of their geographical location, are reached with financial services.

“On one hand, we know that Malawi is predominantly a cash based society, to the extent that 75 percent of the cash in the economy is outside the banking system, leaving only 25 percent in the banking system.

“Going forward, we need to reverse this trend and ensure that all Malawians are reached with various financial services and products so that people can intelligently invest their money and also be able to access capital for their various needs,” Kabambe said.