RBM to conduct financial literacy week
The Reserve Bank of Malawi (RBM) is set to observe its maiden financial literacy week between December 9 and 10 at Comesa hall in Blantyre.
According to RBM’s director for microfinance and capital investments supervision Hastings Mzoma, the week was put in place to provide awareness to people on financial products and services so that they are empowered to make sound decisions in terms of finances.
“Most people in the country lack financial awareness as well as how and where to invest their money and how to manage their finances,” he said.
Mzoma pointed out that the week‘s activities will aim at informing the public on benefits of effective personal finance management, promoting awareness of products and services offered by financial markets and address questions bordering on the financial sector.
“People will witness live trading of shares by the Malawi Stock Exchange (MSE). We will also inform them on terms and conditions of loans, deposit accounts, Saccos, general insurance, pension and personal finance management,” he said.
Speaking in a separate interview, RBM’s financial literacy and consumer protection manager, Lanjesi Sinoya, said lack of awareness in financial issues is impacting negatively on the economy of the country.
Said Sinoya: “Lack of financial awareness has led to low saving culture in Malawians. Only 30 percent of money released by RBM is banked, leaving a whopping 70 percent in people’s pockets.”
The arrangement follows a FinScope survey that was aimed at finding the number of people who are banked and access financial services.
In 2008 RBM conducted a survey which showed that only 19 percent of Malawians are banked and a meagre three percent access insurance services.
However, a recent informal survey the central bank conducted shows that the percentage of Malawians who are bankable has jumped to 28 percent and this is attributed to government’s directive that all employees should be getting their salaries through banks.
African countries that conduct financial literacy weeks include South Africa and Ghana.
