Reserve Bank of Malawi (RBM) Deputy Governor for economics and regulation Henry Mathanga has called for deeper capital markets to mobilise long-term domestic financing for infrastructure development,
Speaking at the Committee of Insurance, Securities and Non-Banking Financial Authorities conference in Lilongwe on Thursday, he said that public resources and conventional bank lending cannot meet the region’s growing investment requirements.
He said southern African countries need alternative financing mechanisms to support investment in energy, transport, water and digital infrastructure.
“Our region’s ambitions for energy, transport, water, digital connectivity and social infrastructure cannot be financed through public revenues and bank lending alone,” he said.
Mathanga said deeper capital markets can channel long-term domestic savings into productive infrastructure investments while broadening investment opportunities.
He identified credible project pipelines, transparent procurement, appropriate financing frameworks and reliable credit information as critical requirements for attracting institutional investors.
In his remarks, Nico Holdings plc group deputy managing director Kwanele Ngwenya said regulatory restrictions and limited investment opportunities continued to constrain the deployment of institutional savings into infrastructure projects.
He said that pension funds and insurance companies hold substantial long-term savings that can support development financing, but unlocking these resources require appropriate investment regulations and commercially viable projects.
“Credit enhancement is the bridge between risky projects and institutional investors,” he said.
Ngwenya proposed reviewing investment regulations to accommodate infrastructure-related assets while ensuring that institutional investors were not exposed to excessive financial risks.
He also advocated greater use of credit guarantees and other risk-mitigation mechanisms to make infrastructure projects more attractive to long-term investors
The proposals highlight the potential role of institutional investors in addressing infrastructure financing constraints without placing additional pressure on government resources.
Beyond infrastructure financing, the speakers called for greater regulatory cooperation to strengthen financial markets and facilitate cross-border investments.
Meanwhile, Gates Foundation Artificial Intelligence Scaling Hubs Initiative lead and mHub founder Rachel Sibande urged financial regulators to integrate artificial intelligence (AI) into their supervisory systems to keep pace with increasingly sophisticated digital financial services.
She said AI can help regulators to analyse large datasets, detect suspicious transactions and strengthen compliance monitoring.
“The goal here is not to replace, but rather to leverage technology and AI as a tool to enable efficiency,” she said.
Sibande warned that technological innovation was also introducing consumer protection risks, including identity fraud, deepfake scams and fraudulent investment schemes.
She observed that regulatory frameworks often lagged behind technological innovation.
