The Consumers Association of Malawi (Cama) has expressed concern over the high interest rate some financial institution are charging poor Malawians.
According to Cama executive director John Kapito, considering the financial status of most of Malawians, there is need that the country’s monetary policies should be reformed saying businesses cannot grow when the interest rate is high.
Kapito also called for the formation of an independent interest regulatory body and the intervention of International Monetary Fund (IMF) on the matter saying the Reserve Bank of Malawi has totally failed to regulate the rates.
“This is a challenge, where in the world do you see a country without a regulator to make sure that banks do not take advantage of the poor by coming up with funny interest rates they decide based on how they look at you or how friendly you are to them.
“This is what I think is missing in Malawi, the presence of a regulator. The Reserve Bank has not played that crucial role to make sure that they can be able to regulate interest rates in the country,” said Kapito.
He added that if Malawi is to grow financially, Malawians need to be given a chance to borrow money at an affordable rate.
As of today, the interest rate in most of banks in the country is over 36 percent, a rate Cama says is very worrisome.