The Government believes that inclusive finance is essential for increasing agricultural productivity and production, starting or expanding micro and small enterprises, creating employment, increasing household income and smooth consumption.
The financial sector in Malawi is made up of two broad categories of operators, commercial banks regulated by the Banking Act, and non-banks which include insurance companies and related players, Micro Finance Institutions (MFI) and savings and credit cooperative societies. Outreach by banks and non-banks into rural areas as well as suburbs still remains limited. There is need to develop strategies for reaching out the excluded.
The objective of the national strategy is to develop an inclusive financial system in Malawi within the next five years (2010-2014) by: increasing the financial and investment capacity of the private sector in urban and rural areas, promoting innovation in the financial sector, supporting the meso level infrastructure, creating an enabling policy and regulatory environment at a macro level, and educating society on financial services, money management and client protection.