Reserve Bank of Malawi (RBM) Governor George Partridge has challenged the banking sector to support the country’s industrialisation drive by financing productive sectors and strengthening investor confidence.
Speaking at the 11th Annual Bankers Association of Malawi (BAM) Lake Conference in Mangochi on Friday, he said businesses invest when they have confidence in the economy, observing that capital is attracted to stable policies and credible institutions.
Partridge said the central bank will continue to promote monetary and financial stability, modern payment systems and appropriate regulation to support investment and innovation.
“Our responsibility is to create trust and confidence and to create and protect the conditions that allow businesses and investors to do those things successfully,” he said.
BAM president Phillip Madinga said that while banks are supporting key sectors such as agriculture, manufacturing, energy, mining and infrastructure, access to finance remains a major constraint to industrial growth, partly due to the mismatch between short-term deposits and businesses’ need for patient capital.
“The future of banking will not be measured simply by the size of our loan books, but by the impact those loans have on businesses, employment and economic growth,” said Madinga, who is also Standard Bank plc chief executive.
Economics Association of Malawi president Bertha Bangara-Chikadza called for increased financing of “salient industries” to help the country maximise their economic potential.
She said many of these industries remain outside formal financial systems and struggle to access financing, limiting their contribution to production, foreign exchange generation and job creation.
