Commercial banks in Malawi have recorded a drop in non-performing loans, an indicator of better credit risk management during a challenging economic period, according to Nation Online. Data from the World Bank's February 2026 Malawi Economic Monitor shows that the share of bad loans fell to 4.6 percent, down from 6.5 percent in May 2025. This reduction brings the rate below the recommended five percent threshold. Bankers Association of Malawi chief executive officer Lyness Nkungula stated that the decline allows banks to channel more resources toward productive lending and private sector development.
The improvement in loan repayments occurred while the Reserve Bank of Malawi kept its policy rate at 26 percent for nearly two years to combat high inflation, Nation Online reports. In related banking news, the National Bank of Malawi announced that its reference rate will be set at 23.70 percent, effective March 5, 2026, according to a notice published on the bank's website.
In an effort to upgrade the national power supply and reduce commercial electricity outages, a new 20-megawatt battery energy storage system has been launched in Kanengo, according to PVknowhow. Installed by JIVO Energy, the 40-megawatt-hour facility is designed to stabilize the power grid and incorporate more renewable energy sources into the system. On March 2, delegates from the Power Institute for East and Southern Africa toured the Kanengo site to observe the technology as a regional model for grid reliability.