Malawi’s financial landscape is witnessing a remarkable surge as the National Bank of Malawi Plc reports substantial growth in village bank memberships, heralding a new era of financial inclusion.
With a whopping K10.7 billion disbursed to Kasupe customers, the bank is shaping a path toward economic empowerment and community-driven progress.
In an engaging interaction with village banks through the Kasupe Finance partnership, Chief Executive Officer Mcfussy Kawawa shared the bank’s resounding commitment to driving financial inclusion.
By disbursing loans through village banks, the bank is not just offering financial support – it’s igniting opportunities for small households to engage in local small-scale businesses, ultimately contributing to the country’s broader economic landscape.
“The default rate is about 20 percent which is not too far from what we anticipated from the very beginning so it is not coming in as a surprise, but we expect that the lessons we are learning and the engagements we are having with the village banks, the default rate should be going down and we don’t expect to stop carrying on with this partnership,” he said.
Faless Chinyati, Chairperson of Chilumba Village Bank based in Ndirande, attests to the transformative power of Kasupe Finance. As a transporter, she has experienced her capital grow, thanks to this innovative initiative.
“Leaders should take themselves as collateral and make efforts to clear the loan, then deal with default members later,” said Chinyati.
In 2021, NBM introduced Kasupe Finance as a bridge to extend banking facilities to groups previously excluded from formal financial channels.
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