Reserve Bank of Malawi (RBM) Governor MacDonald Mafuta Mwale says the central bank is pushing to increase private sector credit to boost agriculture, tourism, mining and manufacturing (ATM+M) strategy match with counterparts in the region.
Speaking during an RBM Investor Symposium in Blantyre yesterday, he said the central bank has been in discussion with banks to increase funding to the ATM+M sectors, which are key to economic growth.
He said: “In Malawi, our banks, intermediation is very low. But we agreed with the chairperson [of Bankers Association of Malawi] to say, we don’t need to put a registration. Let’s do the job.
“And, as we go along, we will improve on that.”
Mafuta-Mwale said since 2000, Malawi has not satisfied imports from what the country generates, importing goods worth $3 billion (about K5.2 trillion) against $1 billion (about K1.7 trillion) generated in exports, adding that Malawi has never accumulated reserves up to six months of imports, observing that “if it has done that, it is through borrowing and we will pay at some point”.
RBM bank supervision executive director Chimwemwe Kachingwe said, at the moment banks are only lending 40 percent of their money, below the region’s 65 percent average.
She said through the policies the central bank is implementing, including offering credit guarantee schemes, establishing project preparatory fund for bankable projects and implementation of the capital market development plan, there will be a turnaround.
Published RBM data shows that the public sector’s indebtedness to the banking system increased by K431.8 billion to K6.9 trillion in May 2025 following a K380.1 billion increase in net credit to the central government to K6.3 trillion.
On the other hand, private sector credit increased by K157 billion to K1.7 trillion in the review month with the community, social and personal services sector holding the largest share of outstanding private sector credit at 39.6 percent, followed by agriculture, forestry, fishing and hunting sector at 22.5 percent, manufacturing sector at 19.1 percent and wholesale and trade sector at 10.6 percent.
On his part, Bankers Association of Malawi president Phillip Madinga said banks through the ATM+M strategy, banks intend to focus on deliberate sector structuring through a well-defined framework that not only enhances operational efficiency, but also improves access to finance for these sector by establishing clear, investable pathways and reducing institutional risk.
He said: “However, we equally urge government to prioritise macroeconomic stability, enabling an environment where banks can thrive, and where Malawians can flourish.
“While the current geo-political tensions, shifting global and regional economic landscape will pose a challenge for all economies, the resilience that the Malawi economy has shown over the past few years despite numerous shocks, should enable a strong base from which better things will come.”
Madinga who is Standard Bank plc chief executive, said in 2024, Malawi’s banks disbursed over K100 billion in productive sector credit, with K44 billion gone to agriculture, manufacturing getting K6.1 billion, construction and real estate getting K26.0 billion, tourism and mining getting K15.2 billion while the energy sector got K8.7 billion.
Meanwhile, Secretary to the Treasury Betchani Tchereni proposed a mark up of 30 percent of private sector credit to ATM+M projects as one way of encouraging funding to the sectors.
“I am ready to take that to the Minister of Justice for them to endorse and to Parliament so that we have that as a law, because that is being radical for our economy,” he said.
The symposium is being held at a time the RBM is celebrating 60 years of its existence.
