RBM financial literacy takes off

In a quest to tackle financial exclusion in the country, Reserve Bank of Malawi (RBM) on Monday launched the much awaited National Financial Literacy Week.

The comprehensive financial awareness programme, which was launched at Comesa Hall in Blantyre, aims at addressing the limited access and usage of financial services.

Speaking at the launch, Deputy Minister of Finance Cornelius Mwalwanda said the idea was hatched upon realising that Malawian consumers lack knowledge, skills and confidence in accessing and using services and products offered by financial services providers.

“Malawians lack understanding of the principles of sound personal or household finance management, such as budgeting, saving and investing,” he said.

He also pointed out that through the programme ,consumers will be able to know the procedures one has to follow for increased access and better usage of financial products.

“The nation’s prosperity ultimately depends on our willingness as individuals to empower ourselves and our families with financial knowledge,” he said.

Mwalwanda also said that the ministry of education has integrated financial literacy topics into the revised secondary school curriculum which is to roll out in the next academic year.

“To prepare the teachers for effective delivery of the topics, teachers from some divisions like the South West and Shire Highlands, have already been receiving the training,” he said.

RBM deputy governor responsible for supervision Grant Kabango described the event as a significant milestone in the development of the financial marketing sector.

“Financial literacy is a fundamental tool for all of us as responsible citizens in our diverse capacities,” he said.

Kabango added that financial literacy facilitates the efficient operation of both the market economy and monetary policy.

“Knowledgeable consumers promote competition among financial and non-financial firms which benefits the economy as a whole. Experience has shown that astute consumers are less vulnerable to fraud and abuse than the financially uneducated,” he said.

He also announced that RBM has undertaken a number of initiatives towards financial literacy including the consumer protection and financial literacy unit and the national financial literacy steering committee, which will eventually lead into the formation of a national financial literacy strategy to coordinate and oversee implementation of financial literacy activities in the county.

The launch attracted attendance from a cross section of dignitaries ranging from the business, banking and education sectors and ordinary consumers.

The theme for the 2013 financial literacy week is “promoting personal and household development through financial literacy.”