Borrowing costs among commercial banks have eased significantly, with the weighted average interbank lending rate falling to around 16 percent by the close of February, according to a March 2026 Financial Market Report released by the Reserve Bank of Malawi. AfricaBrief reports that while liquidity conditions improved, foreign exchange trading activity between authorized dealer banks and clients weakened. Total foreign currency purchases slightly declined to 125.1 billion kwacha, and foreign currency sales dropped more sharply to 106.1 billion kwacha during the period.
In other financial news, approximately K4 billion collected from candidate nomination fees during the September 2025 general elections remains frozen in bank accounts, according to Nyasa Times. Officials from the Malawi Electoral Commission (MEC) told a parliamentary cluster committee that the funds cannot be utilized without prior Treasury approval under the Public Finance Management Act. The revelation comes as MEC requests a higher allocation than its K23 billion budget ceiling for the 2026-2027 financial year.
Update: Following the Reserve Bank of Malawi's recent decision to reduce the policy interest rate to 24 percent, the Bankers Association of Malawi (BAM) has indicated that the move will make it easier for businesses to access credit. BAM president Phillip Madinga told Nyasa Times that commercial banks are already preparing to increase lending to the private sector. The rate reduction aims to stimulate economic activity after high borrowing costs, which previously pushed commercial lending rates to around 37 percent, had discouraged businesses and individuals from taking out loans.