Stronger ties between government, microfinance key to sustaining financial inclusion
As Malawians continue to navigate rising prices and a volatile economy, calls are growing for closer cooperation between the government and the microfinance sector to sustain access to financial services that keep families and small businesses afloat.
The appeal comes as the world of finance faces a delicate balancing act between affordability and stability. International and local institutions alike have observed that when low-income earners can access credit, they are better positioned to survive economic shocks, invest in livelihoods, and build financial independence.
Select Financial Services, one of Malawi’s lending institutions, has joined that call, urging the government to strengthen partnerships that make financial inclusion sustainable amid the current challenges.
Its Chief Executive Officer, Akuzike Kafwamba, said that despite inflationary pressures and currency fluctuations, the microfinance sector continues to play a vital role in helping Malawians build financial resilience.
“We have seen how access to affordable financial services can transform lives. Our focus remains on providing practical solutions that help individuals and businesses stay afloat, even in difficult economic times,” said Kafwamba.
He added that the institution’s 17 years of experience have deepened its understanding of Malawi’s financial realities, allowing it to reach clients often excluded by traditional banking systems.
“Our goal is not only to lend money but to empower people with financial knowledge and tools that promote stability and growth,” said Kafwamba.
Kafwamba further urged policy makers to establish frameworks that support innovation, reduce barriers to access, and foster collaboration between regulators and financial service providers.
“If we work together, government, private sector, and communities, we can build a more inclusive financial system that works for every Malawian,” he added.
Supporting this view, Richard Tembo, a finance expert and senior lecturer in accounting and finance at Millennium University, emphasized the importance of synergy between government policy and microfinance delivery.
““The government provides policy direction and ensures financial stability, while microfinance institutions turn those policies into real financial access for people. Working together ensures support mechanisms like consumer protection, financial literacy programs, and responsible lending standards are well aligned,” said Tembo.
He added that during economic turbulence, timely access to small loans allows households to manage shocks, maintain consumption, and invest in small ventures making institutions like Select essential to Malawi’s financial ecosystem.
Select Financial Services operates in all four regions of Malawi and is part of the broader Select Africa Group, which offers microfinance products in countries including Lesotho, Eswatini, Kenya, Uganda, and Namibia.
