Recent figures from the Reserve Bank of Malawi (RBM) show that Private sector credit marginally contracted in August by 1.8% to K522.0 billion.

The above was attributed to a decrease in commercial and industrial loans, mortgages and individual household loans, registering K9.4 billion, K1.8 billion and K523.8 million to K221.0 billion and K44.4 billion and K154.1 billion, respectively.

A sectoral decomposition of private sector credit shows that credit contractions were registered in manufacturing (K8.6 billion), wholesale and retail trade (K7.7 billion) and agriculture (K2.9 billion) sectors.

In another recent report, RBM’s Governor Dalitso Kabambe outlined that it was the central bank’s goal to facilitate increased private sector credit against total domestic credit from an average of 9.6%-16% by 2021.