By Suleman Chitera
United Democratic Front (UDF) president Atupele Muluzi and former Reserve Bank Governor Dalitso Kabambe have voiced strong opposition to the proposal of transforming the National Economic Empowerment Fund (NEEF) into a fully-fledged bank, arguing that state-run financial institutions in Malawi are often crippled by political interference.
Muluzi, speaking at a political engagement, said the idea of turning NEEF into a bank may not serve Malawians effectively. Instead, he proposed the establishment of a specialized Agricultural Bank that would directly support farmers with loans and financial services.
“Based on what we have witnessed with state-owned banks like Malawi Savings Bank (MSB) and other parastatals, political influence has often disrupted their operations and efficiency,” said Muluzi.
He argued that an Agricultural Bank would be better positioned to empower smallholder farmers, improve food security, and boost the agriculture-driven economy.
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On his part, Dalitso Kabambe said poor leadership and lack of vision are the real reasons why state-owned enterprises struggle to perform.
“It is leadership without vision that undermines the performance of these institutions. Without strong governance and independence, even a bank under NEEF would fail,” Kabambe explained.
Both leaders stressed that while empowering citizens economically is important, the structure and management of such institutions must be carefully designed to avoid repeating past mistakes.
The debate comes at a time when Malawi is grappling with economic challenges, high inflation, and limited access to affordable financing for farmers and small businesse
