Africa-Press – Malawi. Commercial banks have reaffirmed commitment to funding the national growth and development interventions through the ATM-M (agriculture, tourism, mining and manufacturing) strategy.
The Bankers Association of Malawi (Bam)—an umbrella body for the country’s eight commercial banks—said is committed to supporting initiatives incorporated in the RBM 2025 Projects Compendium and other interventions.
The compendium, issued on Tuesday during the RBM Investors Forum in Blantyre, has about 20 projects, cumulatively valued at about K1.4 trillion.
They are from five sectors; agriculture, tourism, mining, manufacturing, energy and health.
The RBM is focusing on local resource mobilisation for financing the projects as a step towards increasing productivity and productivity, and contributing towards containing supply side inflationary pressure.
In an interview on the sideline, Bam President Phillip Madinga said commercial banks were already funding projects in line with the ATM+ M strategy.
He said the banks were examining the bankability of the projects outlined in the compendium for a possible funding and contribution towards economic growth and development.
“It is clear that banks have played a crucial role in supporting Malawi’s economic development and will continue to do so in the future,” Madinga said.
The discussion comes on the hills of concerns among investors and businesses over limited access to finance.
Recent figures from RBM, for instance, show that private sector credit increased by K157 billion to K1.7 trillion in in May.
On the other side, public sector’s indebtedness to the banking system increased by K431.8 billion to K6.9 trillion.
But Madinga said banks remained eager to supporting interventions with potential to generating foreign exchange for Malawi.
The country has been faced with acute shortage of forex due to low production of export commodities.
Annual trade is deficit seen at about $2 billion, as Malawi exports goods and services worth $1 billion compared to a $3 billion imports bill.
In his address, RBM Governor McDonald Mafuta Mwale said the central bank has enhanced efforts in supporting the local private sector access funding for initiative with export potential.
“As part of our strategy to support Malawi’s growth aspirations, the Reserve Bank of Malawi is collaborating with key stakeholders, including government institutions, private sector players and financial intermediaries, in a bid to foster access to investment financing to these priority sectors,” Mafuta Mwale said.
Malawi Confederation of Chambers of Commerce and Industry Chief Executive Officer said the private sector has taken shift towards export-oriented production in contributing towards the agenda.
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