The CEO of National Bank of Malawi (NBM) Macfussy Kawawa, said that the cost of credit on the local market remains high for the majority of Malawians.

The above follows after a Basic Needs basket (BNB) study by Centre for Social Concern (CfSC) has shown that the cost of living has gone up by 3%. The report follows a prior report by the same firm, noting that in January 2019, the cost of living increased to K194 483 in January from K190 543, contrary to various predictions of a drop in the cost of goods and services in the short to medium-term largely due to the improvements registered in the economy and the projected increase in crop yield.

Kawawa said NBM was taking to make the cost of borrowing cheaper. “One measure we have taken is that we have operationalised our long-term financing arm, the NBM Development Bank, so that start-up capital will be one of the types of finance we will be providing and the cost, thereof, will be slightly lower than that of facilities that will be available under commercial banking.

He also said that the bank is also working towards making sure that the cost of doing business is low for banks to afford to pass on those benefits through low lending rates.