IFC and RBM Launch Financial Literacy Campaign to Boost Credit Awareness
The International Finance Corporation (IFC) and the Reserve Bank of Malawi (RBM) have joined forces to launch a national financial literacy campaign aimed at increasing public awareness on credit reporting and asset-based lending. This initiative seeks to enhance financial inclusion and boost business activity in Malawi.
Backed by the governments of Ireland and Norway, the campaign will help strengthen Malawi’s asset-based lending market and promote the use of the collateral registry—an electronic database for recording claims on movable assets such as inventory, equipment, and receivables. This registry enables lenders to verify collateral, thus mitigating lending risks.
The campaign will be disseminated through press publications, social media, radio, and television, focusing on two key programs: the Credit Reporting Awareness Program and the Asset-Based Lending Awareness Program.
The Credit Reporting Awareness Program aims to educate individuals and businesses on the significance of maintaining a good credit history and encourages them to obtain their credit reports from credit reference bureaus (CRBs) to verify accuracy. Malawi’s CRBs play a crucial role in collecting and disseminating credit information about borrowers, including payment histories and outstanding debts.
The Asset-Based Lending Awareness Program will highlight the benefits of collateral reforms, which make it easier for borrowers to use movable assets—such as machinery and inventory—as collateral for loans. These reforms are designed to enable small businesses to secure funding and drive economic growth.
“Financial literacy is a crucial part of the overall credit information system. It involves understanding and effectively using various financial skills, including personal financial management, budgeting, and investing. Knowing your credit status is an important first step towards a brighter financial future,” said Dr. Macdonald Mafuta Mwale, Governor of RBM. “The CRB is a key element of Malawi’s financial infrastructure designed to achieve access to finance and support financial stability.”
IFC Country Manager for Ethiopia, Malawi, and Zambia, Madalo Minofu, echoed these sentiments, stating, “Financial literacy empowers individuals to make sound financial decisions, manage their money effectively, and achieve financial stability and security. IFC brings its global experience supporting private sector development to these awareness campaigns. Our objective is to increase the availability and affordability of credit to underserved segments, including individuals and MSMEs.”
Malawi has recently enhanced its credit information system by mandating that both banks and non-bank financial institutions check a borrower’s credit report before approving loans. Additionally, these institutions are required to submit borrower data to CRBs.
The IFC’s portfolio in Malawi includes investments in financial markets, infrastructure, and agribusiness, along with advisory services supporting both the private and public sectors. In fiscal year 2024, IFC committed $36.4 million to Malawi and mobilized an additional $144.8 million in investments from private sector partners and regional programs.
IFC, a member of the World Bank Group, is the largest global development institution focused on the private sector in emerging markets.
Operating in over 100 countries, IFC leverages capital, expertise, and influence to create markets and opportunities in developing economies. In fiscal year 2024, IFC committed a record US$56 bill
