Madinga addressing delegates at the Bankers Association annual conference in Mangochi
* We are financiers of enterprise; we are managers of risk; we are trusted custodians of savings — and increasingly, we are partners in innovation, investment and business growth
* Thus BAM annual conference’ theme; ‘Industrialising Malawi as a Catalyst for Economic Renewal’ challenges us not simply to discuss industrialisation, but to examine what the banking industry must do differently
* If we are to become a stronger partner in Malawi’s productive transformation
By Duncan Mlanjira
The theme; ‘Industrialising Malawi as a Catalyst for Economic Renewal’ for the Bankers Association of Malawi (BAM) annual conference was deliberated mooted to examine what the banking industry must do differently if it is to become a stronger partner in Malawi’s productive transformation.
This was said by BAM president, Phillip Madinga when opening the annual summit at Sunbird Nkopola in Mangochi on Friday morning, graced by the Reserve Bank of Malawi (RBM) Governor, Dr. George Patridge, Deputy Governor (Operations), Dr. Kisu Simwaka and the rest of the banking sector and its stakeholders.
He said each year, the conference provides an important opportunity for the banking industry “to pause, reflect and engage with one another on issues that shape the future of banking and, more importantly, the future of Malawi’s economy”.
Thus he unwrapped that this year’s theme, challenges this sector “not simply to discuss industrialisation, but to examine what the banking industry must do differently if we are to become a stronger partner in Malawi’s productive transformation”.
“In actual fact Industrialisation is one of the three key pillars of our country’s long term vision, MW2063. As commercial banks, we are not spectators in this journey — we are financiers of enterprise; we are managers of risk; we are trusted custodians of savings.
“And increasingly, we are partners in innovation, investment and business growth. Our success is closely tied to the success of the businesses we serve.
“When industry grows, banks grow; when businesses invest, banks invest; when the economy prospers, our customers also prosper — that is why industrialisation matters to us.
Madinga, who is Chief Executive of Standard Bank of Malawi, further emphasised that “industrial development begins with entrepreneurs who are willing to take risks, manufacturers who are prepared to invest, farmers who want to commercialise their operations and young innovators who see opportunities where others see challenges”.
“The banking industry’s responsibility is to stand alongside these entrepreneurs — not only as lenders, but as long-term financial partners.
“Over the past few years, our member banks have continued to invest in sectors that are fundamental to Malawi’s economy.
“We have supported agriculture, manufacturing, energy, mining, infrastructure, trade and commerce.
“We have expanded digital banking services, increased financial access and introduced products that respond to changing customer needs.
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“While progress has been made, we acknowledge that access to finance remains one of the greatest constraints to industrial growth.
“Many businesses require patient capital, while banks operate largely on short-term deposits. Bridging this mismatch requires innovation, collaboration and the development of financing structures that better serve productive investment.
“This is why our industry is increasingly looking beyond conventional lending and only looking at solutions within the sector alone.”
He thus indicated that the banking sector is strengthening value chain finance, expanding supply chain financing, supporting leasing solutions and embracing trade finance.
“And we are exploring partnerships that allow us to share risk while extending finance to productive enterprises,” he said. “We believe that the future of banking will not be measured simply by the size of our loan books — it will be measured by the impact those loans and financing solutions have on businesses, employment and economic growth.”
Madinga emphasised further that industrialisation also requires stronger relationships between banks and businesses, adding: “Finance alone does not create successful enterprises.
“Successful enterprises are built on good governance, sound business models, proper financial records and responsible management.
“As banks, we therefore have an equally important responsibility to support financial literacy, improve customer capability and strengthen relationships with our clients.
“The stronger our customers become, the stronger our banking sector becomes. This is a shared journey.”
He then addressed the Governor, Partridge and Deputy Governor Simwaka, to express BAM appreciation to the RBM for providing a regulatory framework that promotes confidence and stability within the financial system.
The Reserve Bank of Malawi
“We also recognise the recent regulatory changes being introduced as part of the broader reform agenda. These changes are important because they signal intent — an intent to restore macroeconomic balance, strengthen market discipline, improve confidence and create the conditions for sustainable economic recovery.
“For banks, these reforms matter deeply. A stable and predictable regulatory environment enables commercial banks to plan, innovate and continue supporting economic activity with confidence.
“As an industry, we therefore welcome reform that strengthens the foundations of recovery, while also encouraging continued dialogue on how reforms are sequenced and implemented so that they support, rather than constrain, the credit flows required for industrialisation.”
BAM stresses that it values the constructive engagement that continues to exist between the regulator and the banking industry — thus looks forward to strengthening this collaboration as the financial sector evolves.
“Given the systemic role that banks play in mobilising savings, allocating capital, financing enterprise and supporting national development, we believe continued consultation between RBM and the banking sector is essential.
“Reform is strongest when it is informed by both the policy objective and the practical realities of financial intermediation.
“The domestic debt reprofiling process has also given our industry important issues to reflect on. It has highlighted the link between sovereign financing, banking-sector balance sheets and the wider economy.
“We arrived at this point over time, through a combination of fiscal pressures, rising domestic financing needs and a market structure in which banks became significant holders of Government securities.
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“The lesson is not to retreat from our role in supporting the State, but to strengthen the safeguards that protect the banking book, preserve liquidity and ensure that banks remain able to lend to households and businesses.
“There are lessons for all of us. As banks, we must continue to strengthen concentration-risk management, stress testing, capital planning and asset-liability management.
“We must be deliberate in how we allocate resources, ensuring that more capital is channelled towards productive investment and capital formation, rather than only consumption or short-term activity.
“For policymakers and the regulator, the lesson is equally important: public-sector financing should not crowd out private-sector growth. If industrialisation is to take root, the private sector must have room to borrow, invest, expand capacity and create jobs.
“It is, therefore, important that the banking sector is supported, not weakened, during this period of reform and recovery.
“A strong, well-capitalised and liquid banking sector is not separate from the growth agenda — it is one of the main channels through which that agenda will be financed.
“If the sector is constrained, the economy will feel it through reduced credit, slower investment and weaker support for the enterprises that must drive industrialisation — that would be counterintuitive and against what’s contained in our long term vision for the country.”
RBM Governor Partridge
On his part, Governor Partridge reaffirmed RBM responsibility to build trust and confidence among investors, creating an environment where long-term business decisions can be made with certainty.
Partridge stressed that confidence is not built overnight — it requires policy consistency, sound management, and strong institutions.
As Malawi pursues industrialisation under the MW2063 vision, Partridge emphasised that the financial sector must evolve alongside regulation.
He thus pledged that the RBM “will continue reviewing laws and guidelines to support innovation, protect consumers, and strengthen financial stability”.
“Current reforms include amendments to the Banking Act and other financial sector laws, as well as ongoing reviews of NGO and diaspora financing guidelines,” he said.
Partridge further highlighted the need for banks to collaborate in bridging financing gaps to support industrialisation, while indicating that RBM remains committed to maintaining monetary stability, modernising payment systems, and integrating climate-related risks into supervision — measures aimed at safeguarding the financial system and promoting sustainable growth.
Partridge concluded by urging all players in the financial sector to act not as impediments but as drivers of Malawi’s industrial future.
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