The Reserve Bank of Malawi (RBM) has challenged commercial banks to enhance support towards private sector investments to boost production and necessitate economic growth.
RBM Governor McDonald Mafuta Mwale said by supporting the private sector, the banks would help towards economic stability with a reduced inflation, increased public revenue and increased foreign currency generation.
Mwale was speaking during the 10th Bankers Association of Malawi (BAM) Lakeshore Conference which was held in Mangochi over the weekend.
“There is a need for collaboration between banks and other businesses to strengthen their capacity for productive investments.
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“We need to put much of our resources towards increasing production because this is the only way we can reduce the import and export gap that is affecting the growth of our economy,” he said.
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Mwale observed that currently the private sector is not producing enough for local consumption and export, a situation which he said is forcing Malawi to have difficulties in reserving adequate foreign currency for importing critical goods and services which are not produced locally.
However, the central bank chief said he is optimistic that if commercial banks introduce tailor-made investment packages for targeted players in the agriculture, tourism, mining and manufacturing (ATMM) sectors, Malawi will be able to achieve its 20263 economic aspirations.
“We know that some projects are huge and require huge investments, this is where we want the bank to consider working together by putting together their resources towards those huge projects. This is not a one man’s show, it is a call that needs collective responsibility and duty,” he said.
In his remarks Bam President Phillip Madinga said banks were already working with the private sector and are committed to fast-tracking investments for economic transformation.
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“We are committed to work with the government through the reserve bank of Malawi to support the productive sectors of the economy. We are happy now that the productive sectors are well spelt in the ATMM strategy and we have observed that there are immense opportunities which the banks can take support and we are ready to support,” he said.
