By Dumisani Ngulube, Contributor
Stories about people stuck in debt, losing property or assets to money lenders, or failing to clearly see the financial future are common topics in most of our communities.
Navigating the slippery economic terrain requires individuals, communities, organisations, and even countries to be intentional and forward-thinking in managing today to achieve a better tomorrow that is financially sound.
As Malawi continues to wrestle with economic instability and hazy financial futures, players in the financial sector continue to highlight the importance of financial literacy in promoting economic growth and development.
According to the 2023 FINSCOP Consumer Survey 74% of Malawians have access to formal financial services, leaving significant 26% vulnerable to exploitation and financial insecurity. The report emphasizes the need for financial education to equip Malawians with the skills and knowledge necessary to manage their finances effectively for today and tomorrow.
The sentiments emphasising the need for more financial education were echoed by the Reserve Bank of Malawi (RBM) leadership during the launch of the National Financial Literacy and Capability (2024-2030) last year in September.
“Financial literacy is critical to Malawi’s economic development. By empowering individuals and communities with financial knowledge and skills, we can reduce poverty, increase economic growth, and promote financial stability,” reads the report in part.
In response to this challenge, players in the financial industry sector across Malawi are building and launching financial literacy programs and campaigns aimed at promoting financial inclusion and economic empowerment.
One such initiative is the Financial Literacy Program launched by RBM in partnership with the Ministry of Finance. The program aims to provide financial education to 500,000 Malawians by 2025.
The tone set by the regulator, has seen a number of players in the financial sector responding favourably by driving financial literacy programs.
One such proactive player is the NICO Group, a conglomerate with interests in insurance, banking, capital markets, pension, asset management, property management just to mention a few.
“As we commemorate global money week, the NICO Group remains committed to ensuring that all Malawians have access to the financial knowledge and skills necessary to succeed in today’s economy. We are on a mission to educate Malawian households on financial matters this year – we are not leaving anyone behind,” says Lorraine Mlenga, Group Head of Marketing and Customer Experience, NICO Holdings.
“By promoting financial literacy through the ‘Zikumveka Kumboyoko?’ campaign which we rolled out last year, we believe we will help the country to unlock economic potential and build a more prosperous future for all Malawians.”
“As Malawi continues to work towards achieving its development goals, the importance of financial literacy cannot be overstated. By empowering individuals and communities with financial knowledge and skills, we can promote economic growth, reduce poverty, and build a more stable and prosperous future for all Malawians,” explains Mlenga.
Fast Facts
74% of Malawians have access to formal financial services (2023 FINSCOP Consumer Survey)
1 in 5 Malawians have no access to formal financial services 2023 FINSCOP Consumer Survey)
Financial literacy programs have been shown to increase financial inclusion by up to 30% (World Bank)
