In this piece, the Country Manager for TransUnion in Malawi, Dumisani Kadango, looks at how Malawians can navigate the economic challenges facing the nation. Excerpts:

Malawi is currently facing challenging economic conditions, including a high benchmark interest rate of 26% and an inflation rate of 28.5% as of January 2025¹. Financial pressures have been intensified by a severe drought in 2024, which negatively impacted agricultural production, the backbone of the Malawian economy.

In this context, consumers maintaining a healthy credit profile is crucial for financial stability. However, with only 34% of the adult population using formal financial services, many Malawians rely on mobile wallets and informal credit systems for their financial transactions². Recognising the need for greater financial inclusion, the Malawi National Strategy for Financial Inclusion (NSFI) III aims to increase access to at least one formal financial service to 95% of the country’s adult population by 2028, and reduce financial exclusion from 12% to 5%³. Strengthening financial literacy and responsible credit management will play a vital role in achieving this goal.

“In a country where formal banking is not the norm, managing financial transactions responsibly, whether through mobile money, microloans, or other credit facilities, can make a significant difference to long-term financial stability and economic growth,” says Dumisani Kadango, Country Manager for TransUnion in Malawi. “Understanding and monitoring your credit report is one of the most effective ways to protect yourself from financial risk and fraud.”

Kadango provides the following tips to help Malawians manage their finances and protect their credit standing in today’s challenging economic climate:

• Stay on top of your loan repayments. Many Malawians rely on small loans for daily transactions. Making timely repayments ensures that your financial reputation remains strong, helping you access credit when you need it.
• Be responsible with borrowing. Given the rising cost of living, it’s tempting to take multiple loans, but borrowing beyond your means can lead to long-term financial strain. Only take credit you can realistically afford to repay.

• Check your credit report for fraud and errors. Since most Malawians use mobile transactions rather than traditional bank accounts, fraud risks are high. Regularly reviewing your credit report helps detect any fraudulent activity early.
• Save where possible. Even small savings can help cushion financial shocks. Setting aside money in a mobile wallet or savings group can reduce reliance on high-interest credit during emergencies.

In light of Malawi’s unique economic challenges, it is imperative for individuals to take proactive steps in managing their financial health. Kadango concludes: “Financial education and knowledge are key to healthier household budgets and overall economic growth. If consumers take time to better understand their financial standing and make timely credit repayments on responsible borrowing, we can build greater financial resilience as a nation.”

Accessing Your Credit Report

To maintain financial health, it’s essential to monitor your credit report regularly. In Malawi, you can obtain a free credit report once a year from any of the existing credit bureaus:

• TransUnion: Visit the TransUnion office at Old National Bank, Victoria Avenue, Blantyre. Ensure that you bring your National ID to validate your identity.
• Credit Data CRB: Visit the Credit Data CRB office at Umoyo House, Ground Floor, Victoria Avenue, Blantyre. Ensure that you bring your National ID to validate your identity.