By Fostina Mkandawire

Salima, May 17, Mana: In an effort to promote financial inclusion and equality, Microfinance institutions have been urged to develop policies that ensure that women have access to financial services.

Reserve Bank of Malawi Executive Director, Mercy Kumbatira, made the call on Thursday, and during an inaugural ‘Women in Microfinance Meeting’ organized by Malawi Microfinance Network, in Salima district.

Kumbatira said it is unfortunate to note that women are preferring informal financial institutions popularly known as "bank nkhonde" a development that is putting them at risk of financial insecurities, adding that most of these groupings are not registered.

"These women groupings where money is kept are not registered therefore if money is misappropriated it is difficult to lay claims to recover the loses," she said.

She said the higher percentage of women accessing and using informal financial services, specifically village banks, is an indication of a high and unmet demand for financial services and products by women.

On this point she said it is important for financial institutions to revisit their policies so that women should move from preferring informal financial services to preferring formal financial services and create demand for women to have access to financial services.

She therefore said Microfinance Institutions should continue challenging traditional gender norms by promoting financial inclusion adding that when women gain control over financial resources, they make financial decisions which positively impact their families and communities.

Kumbatira said the Reserve Bank is complimenting efforts made by Microfinance Institutions such as development of a Gender Inclusive Finance Roadmap to address the gaps hindering women from accessing formal financial services.

Concurring with Kumbatira, Malawi Microfinance Network Chief Executive Officer, Duncan Phulusa said bringing together women in Micro Financing will help in bringing solutions to challenges that women are facing when trying to access financial services.

Phulusa said the meeting provided networking and mentorship opportunities for building professional networks among women working in the financial services.

"This conference has provided an opportunity and a platform for all stakeholders to engage and chart a way for leadership, empowerment and embracing talent in the microfinance sector, as in doing so, plays a crucial role in shaping the industry and promoting financial inclusion," he said.

Malawi Microfinance Network acts as a resource Centre for Microfinance Institutions and other stakeholders to access a wide range of information on Microfinance within and outside Malawi.