SMEs, VSLs trained in financial management 

About 1000 people belonging to Small and Medium Enterprises (SME) and Village Savings and Loans (VSL) groups in Blantyre have been equipped with the knowledge on financial management practice to promote budgeting, savings and investing culture.

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Blantyre district community development officer Joseph Gama said this on Saturday on the side-line of a five-day financial literacy awareness training for SMEs and VSLs associations organised by Reserve Bank of Malawi.

Gama said the training follows the National Literacy and Capacity Survey that showed that there is lack of personal and household finance management practice and low use of financial services and products among Malawians including those living in rural areas.

“This result into low savings and irresponsible borrowing leading to over- indebtedness and unnecessary expenditures because of lack of planning and budgeting,” he said.

He underscored the importance of the training to empower SMES and VSLs associations with knowledge and other skills that will enable them to make informed choices and take effective actions for improved financial wellbeing.

Speaking in a separate interview, one of the financial educators, Digital Accounts Relationship Officer for FDH, Blecious Masiye encouraged Malawians especially those based in rural areas to familiarise themselves with banks’ services and other products to save their money and also to be able to access loans to invest in various businesses.

One of the participants, Judith Mposa from Traditional Authority (TA) Somba, expressed gratitude to the financial educators for taking the message on finance management to rural masses.

She said: “most of the time, we find ourselves taking a loan from our savings and loans group with an intention of investing it in a business but we end up spending it irresponsibly and at the end failing to pay it back. We are therefore grateful because this training has come at an opportune time”.

Apart from Blantyre, similar trainings are being conducted in other districts including Zomba, Mzimba and Nkhotakota