By Taonga Sabola:
The Reserve Bank of Malawi on Saturday challenged financial market dealers in the country to play their rightful role towards accelerated economic development of the country.
RBM Executive Director, Henry Mathanga, was speaking in Mangochi during the 2019 Financial Market Dealers Association (Fimda) annual conference held under the theme ‘Navigating the Next Level for the Economy and Financial Markets’.
Mathanga said financial market dealers have a critical role of extending credit to sectors that could help propel growth of the economy, rather than just lending to government.
He said statistics show that in the past 19 years, the local economy has swelled by an average of about 1.5 percent per annum which is lower compared to other countries such as Rwanda.
“For the economy to develop, there is need for businesses to access the much-needed capital to grow their enterprises and create jobs.
“There is, therefore, need for close corraboration among all sectors of the economy. The role of financial market dealers, therefore, becomes key in ensuring that innovative ideas are supported,” Mathanga said.
He also warned the dealers against making too much profit from a single transaction, saying they should strive to raise small profits from many transactions.
“By trying to realise a huge profit from a single transaction, it affects the pricing of your products as you are forced to price them highly,” Mathanga said.
He also warned the dealers against being used as conduits of foreign exchange externalisation.
The conference attracted over 100 dealers from the money, capital, forex and commodities markets.
Fimda President, Patricia Hamisi, said the conference focused on how best the financial markets can explore and support the exports market in the development of financial products.
Hamisi said exports is one of the challenges that Malawi has been facing, especially when you look at the recent declining foreign currency inflows as opposed to the ever growing import bill.
Notable speakers during the conference included Standard Bank Head of Global Markets, McLewen Sikwese, Nico Asset Managers Chief Investment Officer, Daniel Dunga, RBM Market Analysis and Development Manager, Franklyn Khoza, Export Development Fund Executive Director, William Matambo and Manoj Dullabh from Refinitiv (formerly known as as Thomson Reuters).