One of the local insurance companies, Old Mutual, says enhancing efforts in civic education on financial management would help address the existing gap on savings among a majority Malawians.
This comes as the country still lags behind in regard to savings culture, which has in turn also frustrated efforts towards growth of most small and medium enterprises.
Chief Executive Officer for Old Mutual Edith Jiya said in an interview that most businesses and individuals have in the recent past failed to thrive mainly due to lack of a savings culture.
According to Jiya, a solution to the prevailing problem rests in the hands of Malawians themselves.
“If we have that very good environment, with people that are financially aware and educated as well as the right products on the capital market, it would help improve the savings culture in Malawi,” said Jiya.
She commended the country for the strides made to direct people towards a savings culture citing, for example, the recent enactment of the Pensions Act which, she said, has already started helping towards improvement of savings among Malawians.
Jiya said the country needs to do more in improving the capital market to ensure that people see the value in it and create conform of stable capital market.
“Investment is not a short term exercise. It is there for people that are there to stay. There are challenges in the short term but we think those can be surmounted,” said Jiya.
According to Jiya, addressing the existing challenges requires a multifaceted approach which includes investing in efforts and resources in awareness on financial education among others.