EVER since Malawi did a copy and paste of the name Kwacha to christen their currency, it has been playing second fiddle to Zambia. Having introduced the Kwacha currency in Zambia in 1968, it didn’t take two years before our neighbor adopted the same name and functions. Meaning dawn, in Bemba, Chewa and Tonga, our Kwacha has started making some astute Malawians stinking rich. Aided by our liberal financial policies our neighbors are riding on exchange rate fluctuations to do a don’t Kubeba on our banking system.
During my forays in Malawi, I discovered that their digital financial platforms have a number of limitations. To draw huge sums of money in that country, using a legitimate credit card might actually see you spend several weeks. Their daily limit is not only low by dollar terms but their ATM machines are also surprisingly slow. Perhaps this has made most Malawians to rely on cash rather than electronic systems.
Those within the border towns and sometimes from far off Lilongwe and Blantyre have found an uncanny way of transacting using our banking systems. I have no issues with cross border trade but banks in Chipata and Lundazi are in essence dominated by Malawian short term millionaires. Us who are outside banking circles might be derided for lacking empirical evidence on this core. However it is an open secret that the majority of daily ATM users in Chipata and Lundazi are Malawians.
Many operate with two accounts across borders; one in Zambia and the other in Malawi. The liberality of our banking system unfortunately has no reciprocity in Malawi. For a Zambian to open an account in that country, the requirements are taxing; passport, proof of residence, a Malawian proxy partner and good commercial reasons. Many have failed the test. On our part, the banking system is either outmaneuvered or our Know Your Customer chip has malfunctioned; many Malawians have multiple accounts. Maybe it’s good for business.
Currently that country rely on all Trade Kings products and an assortment of our locally produced drinks, especially with high energy ingredients. They will buy goods in bulk, resale at their borders, load money into their accounts and cross back to Zambia. For every withdrawal done, our ever fluctuating currency gives them enough profit for the day. This cycle is repeated daily regardless of weekends. I have no problems with their transactions but since they come in numbers, they literally take charge at all our ATMs in both Lundazi and Chipata. Once done with withdraws they then enter our banks to deposit thousand to allow them buy Trade Kings products electronically.
I have witnessed not one but dozens using multiple Zambian credit cards to literally drain the swamp at Stanbic Bank Chipata and other banks. Not that this is the only bank affected but we have had situations where customers wait hours on end because our big buyers are in town. Sometimes they politely give locals chance but their visibility has already left an impression. Since it’s now a common phenomenon, is there a way someone can look at this critically?
As a Pan Africanist I have nothing against financial openness across borders. Infact I envy this astuteness but for reciprocity. I know someone with a child studying in Malawi who has repeatedly been denied to open a bank account in Lilongwe. Maybe there are several other cases. Is there something our banks are missing or perhaps there is more to gain? What impact does this daily stripping of bank vaults have on money circulation? Mine are just simple questions to ruminate! Maybe we should blame ourselves for a weak Kwacha!
Perhaps, just perhaps – we could take this as a light moment, since Malawi has just given us a millionaire music icon in the name of Dr. Patience Namandingo! Ma guys bali Namapulani!
The author is a social commentator who writes for pleasure.
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