Parliament was appealing for a law to be passed for low interest rates in order to protect borrowers, but Malawi Chamber of Commerce and Industry has said that the rejected bill could not have been sustainable if it passed. The MCCCI Chief Executive, Chancellor Kaferapanjira said said that capping the interest rates is not the solution, citing that there are policy alternatives that can protect borrowers from excessive interest rates.

 “We agree that there is high rate of borrowing; but the challenge is on how RBM is going to intervene in making sure that the commercial banks are not just adding unnecessary risk premiums,” said Kaferapanjira who was backed by the Bankers Association of Malawi President, Paul Guta, who said that the proposed bill could be solving symptoms instead of the root cause of high interest rates.

 The high rates are as a result of so many factors that include; operational factors such as electricity and connectivity as well as inflation,” He said.