Reserve Bank of Malawi widens scope on literacy campaign

The Reserve Bank of Malawi (RBM) has engaged the Competition and Fair Trading Commission (CFTC) in raising awareness on fair trading practices among players in the financial sector.

RBM has said this will help to lessen anti-competitive business practices among the financial market players and in the process, offering more protection to consumers.

RBM Principal Examiner for Consumer Protection and Financial Literacy, Madalitso Chamba, said that the initiative is part of the central bank’s strategy to spread the message on financial literacy.

“This meeting is part of our financial literacy agenda, which we launched five years ago. Looking at the magnitude of the issue at hand, we feel that RBM alone cannot drive the agenda, so we are partnering with other institutions such as CFTC,” Chamba said.

She added that the programme aims at educating consumers on financial products and services, including the terms and conditions attached to such products and services being provided by the financial institutions.

“We want customers to be aware of what contract they are entering into when they seek services or when buying products from companies. We know that for this to happen, the financial institutions have to do their part, which is providing appropriate information to the consumers,” Chamba said.

CFTC Director of Consumer Welfare and Education, Lewis Kulisewa, said that the level of awareness, among consumers as well as financial players, is low, which aggravates the situation.

“Low level of awareness is one of the biggest challenges that we have on the market and what mechanisms are available for consumers to get redress for the violations that they meet from time to time when transacting on the market,” Kulisewa said.

He further said they want players in the financial sector to understand the law and how it is interpreted, so that it helps them comply easily.