Banking and Finance Supplement

Boosting rural economy through village banks — P2

Insurance industry casts the net wide — P4

People’s views on

insurance policies— p4

SPECIAL PULLOUT THE NATION 21 NOVEMBER 2013

ARCHIVE FAST

FACTS� The history of banking begins with the first

prototype banks of merchants of the ancient world which made grain loans to farmers and traders who carried goods between cities. This began around 2000 BC in Assyria and Babylonia.

� Malawi’s insurance penetration is currently pegged at three percent whereas 71 percent of its population is unbanked.

Boosting rural economy through village banks

Airtel 1.

Business 2. Finance

Continuing 3. Education Centre

Indebank4.

MSC5.

MSB6.

Masm7.

Nedbank8.

Nico Holdings 9. Limited

Nico General 10. Insurance

Rennies 11. Travel

Saile 12. Financial Services

Standard 13. Bank

TNM14.

Victoria 15. Forex Bureau

2

PAGE 3

One of VSLs meetings in Ntchisi

PHO

TOG

RAP

H: N

ATIO

N L

IBR

ARY

The following are organisations and institutions that are raising the bar in promoting the financial sector in Malawi:

by Bernard Kambeja, Save the Children village savings and loans coordinator

SCALING THE HEIGHTS

It is not uncommon these days to see a group of women in a village setting

sitting in a circle.For sure, some might have

asked what the women were doing and they were told that the women were members of ‘banki ya kumudzi,’ meaning the members of a village bank.

The terms banki m’khonde, banki ya kumudzi or village bank are now household names in most parts of the country.

Both local and non-governmental organisations (NGOs) implementing these interventions also call them with different names.

While some NGOs call them village savings and loans (VSLs), others call them savings groups or savings and internal lending communities (Silcs). All these terms refer to what most communities call village banks.

But for the purpose of this essay, such groups will be referred to as VSLs.

VSLs are self-selected groups of people (usually unregistered) who put their money in basket funds from which they borrow each other.

The borrower pays back the money at an agreed period with interest, causing the fund to grow.

Most, if not all, VSLs have a cut-off point when their regular savings and interests would be shared out among the members using a formula that links payouts to the amount saved. Usually the cut-off point is between nine to 12 months.

VSL members use the money that has been shared out as they wish, without any restrictions whatsoever.

VSLs seem to attractive

SPECIAL PULLOUT THE NATION 21 NOVEMBER 2013 3

Improving livelihoods through village banksSPECIAL ESSAY SCALING THE HEIGHTS

to most people they offer interests on savings and provide micro-finance insurance and loans, usually in excess of the borrower’s savings.

That aside, a loan is processed fast and provided at a convenient time to the borrower. What is more pleasing is that the members discuss and agree on the borrowing period.

In this way, the funds are constantly working and accumulating interest in the process.

These savings, insurance and loan facilities allow members to meet small and short-term financial needs for income generating activities, social obligations and emergencies without having to borrow from formal financial institutions, taking expensive supplier advances or relying on relations.

This is a big boost to social security.

VSLs require a written or oral system of record-keeping. As such, NGOs implementing VSLs play an important role in ensuring that this is instilled in the groups.

The basic principle of VSLs system is to help communities save money which is in turn a source of capital from which they can borrow.

VSLs provide savings and simple insurance facilities in communities without access to formal financial services.

Members of VSLs meet regularly. It can be weekly, fortnightly or monthly. They are, however, advised that a month should not go without a meeting because it is during such meetings that all transactions take place (in the presence of all members) to ensure transparency and accountability.

All members see who has saved and who has not; who has borrowed and who has not and what that means in terms of net worth.

To ensure that transactions do not take place outside such meetings, a lockable cash box or a heavy-duty lockable canvas pouch is used. This helps to prevent unauthorised cash movements and risks of tampering with records.

VSLs membership is open to both men and women. It is, however, advisable that three of the five committee members be women in a case of a mixed group.

For smooth operations of a group, members agree on a set of rules or come up with a constitution to guide their activities.

The constitution provides a framework for governance, helps in dispute resolutions, taking certain disciplinary actions and in specifying how the social fund will open, with clear terms and conditions of saving and borrowing.

Each member of the executive committee is assigned to remember one or more rules.

During the group’s

meeting, each member recites rules and regulations that govern that particular VSLs.

This is repeated several times until the rules are instilled in each member of the group.

Thereafter, the recitation can be reduced in frequency or eliminated altogether because each member is now aware of the group’s regulations.

There are a number of

challenges facing VSLs, but chief among them all is unstable incomes.

While it is important to ensure financial discipline and regular savings, the reality is that rural incomes are unstable and variable.

It is under such challenge economic circumstances that most VSLs suspend their savings by mutual agreement. In principle, this means the operations

PHO

TOG

RAP

HS:

NAT

ION

LIB

RAR

Y

Village banks provide start-up capital for small-scale businesses

A woman stands in front of a house being built with money from a village bank

PAGE 2

of the VSL has been stopped.

It is a fact that at certain times of the year, it is not easyfor rural communities to raise weekly contributions.

There are also times when the demand for members to work in their gardens is so high that it also becomes a challenge for them to attend weekly meetings.

Since rules governing the operations of savings groups are formulated by members themselves, there is nothing an NGO can do if the members decide to call it quits.

VSLs members are free to suspend the savings to accommodate pressing demands for labour in their fields.

Regardless of the suspension, it is advised that members must continue servicing their loans. So, members may still agree to meet at certain times to allow for repayment and disbursement of loans, but there will be no savings.

The challenges notwithstanding, VSLs have proved to be a good intervention to turn around socioeconomic fortunes of rural communities and a viable option for them to access small loans to meet some social obligations or start small-scale enterprises, especially where opportunitiesto access such loans from formal financial institutions are nonexistent or limited to people with recognised collateral security.


FDH Bank soaring

People’s views on insurance policies

Insurance industry casts the net wide

Since our incorporation in 2008, FDH Bank Limited has grown extraordinarily fast over the past five years, all thanks to our valued customers.

FDH Bank’s vision has been, and remains, for the bank to be the leading provider of first class banking solutions in Malawi and the Southern African Region, and achieving such a vision requires the need to offer exceptional customer service.

The bank emphasises on the need to deliver services with speed and excellence. Being the only “home grown bank”, we strive to remain relevant to all residents of Malawi because we believe that we understand this market and your banking requirements better.

Superior customer serviceIn our continuous efforts to

improving our service offering to our clients, the bank now has dedicated Account Relationship managers and officers within both our corporate banking, and our personal and business banking divisions. These managers and officers will now be the key points of contact with the bank, ensuring that our customers banking and financial needs are understood and satisfied appropriately.

The bank also plans to continue with the extension of its branch network to complement the existing 12 branches and agencies. In addition, we are also currently installing additional ATMs across the country to ensure that customers can access essential banking services without requiring one to physically go inside the branches, this is in addition to the rolling out of our Point of Sale (POS) machines which shall be made available in all major shops across the country.

Making banking enjoyable and simple

FDH Bank uses a highly dependable and flexible banking platform known as T24 that supports our continuously evolving range of value added services, providing many secure methods of managing one’s money without the need for any human interaction whatsoever. The flawless integration of T24 and our FDH Online or Internet banking solution makes banking simple and enjoyable for our customers. Our FDH Online banking platform is probably one of the best online banking platforms on this market.

FDH Bank strives to develop and offer customised products and services that would simplify banking for customers through technology and services that shall not only cater for the general public, but also for all key sectors of the country and in particular the SME sector, which is one of the key driver of this country’s economy.

Apart from using our banking platform to make banking

Joseph Kazembe from Blantyre says he does not have a policy because he does not have enough information on insurance cover and how he can get one. I wished employers had keen interest in encouraging their employees to get insurance cover.

SEKANAWO JOSWAHSTAFF WRITER

Malawi is one of the countries where insurance is regarded as a option not a must.

No wonder insurance penetration in Malawi remains at a meagre three percent.

Insurance Institute of Malawi education secretary

SCALING THE HEIGHTS

Limbani Manda from Blantyre says he does not have a policy because insurance policies are for big people. They do not target nonentities like myself. I doubt if they have packages for low income people. After all, they only focus on making profits not helping people.

Maclonx Mwase said the industry has come up with several initiatives to encourage people to buy insurance policies.

“The financial education programme is one of such initiatives geared at increase the financial literacy level, especially of insurance, among Malawians.

“The launch of diverse innovative products are

not only appealing, but also meet the needs of the market,” he said, citing crop insurance as an example of innovative products by the industry.

Mwase said most insurance companies are also using mobile phones and banks (Bancasurance) as another dimension to insurance business.

He said insurance has

also a number of products that are affordable to people with different social backgrounds.

“It is true in the past we used to focus on the affluent market of middle to high income groups, but now the focus is broadened with insurance companies coming up with products that cater for people of all social backgrounds,” he said.

Shogun Mukhwapa from Nkhata Bay says he maintains a savings protection policy with Nico. My policy is for five years, meaning I can benefit from the policy after expiry of that period.

Lusubilo Nkhonjera from Blantyre says he has two policies TNM Moyo Cover and Masm. Masm come handy when I am sick and do not have money to pay medical bills. With Moyo Cover, I know I would not leave my family in trouble if I were to die today.

Marriam Rashid from Blantyre says she has a medical aid policy. I decided to have a policy so that I am secured health-wise.

Tinna Chikoko from Blantyre says she is a beneficiary of her mother’s Masm scheme. She covered me so that I am able to get quality medical care when I am sick.

Agnes Mziya from Blantyre says she does not have a policy at the moment, but she intends to have one sometime this year. I used to be a beneficiary of my father’s medical aid policy. I am working hard to get a policy with Masm since it is the only medical aid policy I know.

Memory Mzingwachi Gongwa from Blantyre says she does not have a policy. In Malawi, it is not a big issue whether one has a policy or not. The problem is that most of us do not know the importance of insurance cover.

PHO

TOG

RAP

HS:

SEK

ANAW

O J

OSW

AH

PAGE 11

FEATURES

4


SCALING THE HEIGHTSADVERTISING

5


Business Finance Limited (BFL) has tailored some distinctive financial products to assist small and medium enterprises (SMEs) as well as upcoming businesses for them to make money and help their businesses grow fast.

Since its inception, BFL is establishing itself as a key market player in providing two financial products:- Invoice Discounting and Purchase Order (LPO) financing.

In order to remain competitive, businesses realise that they need to give credit terms to their customers. However, they also need early payment of sales invoices to assist with their own cash flow and Invoice Discounting provides this very solution, allowing businesses to get the best of both worlds.

Business Finance Ltd: Providing financial solution to businesses

Simply put, Invoice Discounting is a facility whereby a business can discount (“Sell”) its invoice(s) with BFL and obtains immediate cash. What it means is that when a business has issued an invoice(s) for goods or services supplied on credit, it can bring a copy of that invoice to BFL. After appraising the transaction, BFL will immediately pay your business for the invoice rather than you waiting for payment from your customer for 30, 60, 90 or even 120 days.

BFL also offers Purchase Order (LPO) financing. Purchase Order financing is a funding option for businesses that need cash to finance single or multiple customer orders. This facility is an effective form of business financing in which

money is advanced to a business against an LPO. Purchase Order financing therefore provides immediate financing especially to Small and Medium Enterprises (SMEs) who obtain orders from reputable and credit worth institutions and organisations. BFL will after appraising the transaction provide the needed finance quickly and efficiently for you to supply the order timely and without hurdles to keep your customer satisfied for repeat business.

Business Finance Ltd understands that challenging economic times call for creative thinking and that is why the company came up with these distinctive financial products to hold its customers hand and help their business through these economic challenges.

SCALING THE HEIGHTS ADVERTORIAL

SPECIAL PULLOUT THE NATION 21 NOVEMBER 2013 7



Savingsplus Account only from IndebankSmall and medium-sized enterprises (SMEs) are highly significant in developing coun-tries particularly Malawi for the contribution they make in creation of employment, and overall economic growth. SMEs however experience wide range of challenges including limited access to financial products and services; a lot of SMEs use personal accounts for business while a greater percentage of this group does not have bank accounts. This prompted Inde-bank to introduce Savingsplus, which is a tailor made account to support business transactions and financial management.

Indebank introduced SME and Personal Savingsplus earlier in 2013 in order to meet savings and transacting needs of both existing and potential custom-ers, the account offers flexibility as account holders are able to save while transacting.

Customers are able to issue cheques on their savings ac-count; this is advantageous as those who cannot afford to oper-ate a current account are able to transact conveniently

The account is affordable as the minimum balance for SME

Savingsplus K10 000 while a monthly fee is K 1 000. For Personal Savingsplus, minimum balance is K5 000 and monthly fee is K500.

Savingsplus account offers

customers’ an opportunity to access loans to expand grow their businesses, and run away from informal borrowing.

The Savingsplus account also enables customers track their

accounts through quarterly statements made available at a reasonable fee. The account fur-ther allows customers access an ATM card and internet banking services which accords custom-

ers options to buy airtime (TNM, MTL, Access and Airtel), and pay personal or business Escom bills while with internet banking, customers do request for cheque books and transfer funds.


PHO

TOG

RAP

HS:

NAT

ION

LIB

RAR

Y

SMEs can benefit a lot by opening Savingsplus Account

8

SPECIAL PULLOUT THE NATION 21 NOVEMBER 2013 9SCALING THE HEIGHTSADVERTISING

AD

VE

RTO

RIA

LSC

ALI

NG

TH

E H

EIG

HTS

Ned

bank

Mal

awi

Lim

ited

offe

rs

a w

ide

full

rang

e of

ret

ail

and

busi

ness

ban

king

ser

vice

s to

the

w

hole

spe

ctru

m o

f the

Mal

awia

n ec

onom

y.Th

e ba

nk’s

cor

pora

te b

anki

ng

prod

ucts

in

clud

e tr

ansa

ctio

nal

bank

ing;

co

rpor

ate

curr

ent

and

savi

ngs

acco

unts

; fo

reig

n cu

rren

cy

acco

unts

(F

CA

s),

inve

stm

ent

acco

unts

; lo

cal

and

offs

hore

le

ndin

g;

trad

e fin

ance

in

stru

men

ts

and

trea

sury

Ned

bank

: Firm

ly g

roun

ded

to se

rve

MW

eco

nom

y ex

ecut

ion.

Key

am

ong

the

bank

’s

corp

orat

e le

ndin

g pr

oduc

ts is

the

Offs

hore

Tr

ade

and

Stru

ctur

ed

Com

mod

ity

Fina

nce

solu

tions

de

sign

ed

to

suit

uniq

ue

clie

nt

requ

irem

ents

.N

edba

nk r

ecog

nise

s th

at t

he

days

of a

one

-siz

e-fit

s-al

l fin

anci

ng

appr

oach

ar

e go

ne

and

that

bu

sine

sses

now

nee

d in

nova

tivel

y st

ruct

ured

sol

utio

ns.

We

are,

th

eref

ore,

gl

ad

to

offe

r ou

r cl

ient

s w

ith

suita

bly

stru

ctur

ed p

re a

nd p

ost s

hipm

ent

expo

rt f

inan

ce l

oan

faci

litie

s as

w

ell

as

stru

ctur

ed

com

mod

ity

trad

e an

d im

port

fin

ance

fa

cilit

ies.

An

offs

hore

loan

from

Ned

bank

w

ill e

nabl

e cl

ient

s to

opt

imis

e th

eir

cros

s bo

rder

bu

sine

ss

deal

ings

and

man

agem

ent

of t

he

earn

ings

the

reof

. T

he s

olut

ions

w

ill

enha

nce

the

clie

nts’

re

latio

nshi

ps w

ith s

uppl

iers

and

expo

rt c

usto

mer

s th

roug

h tim

ely

proc

urem

ent

of

inpu

ts

and

deliv

ery

of th

e pr

oduc

ts.

In

supp

ort

of

the

abov

e so

lutio

ns,

Ned

bank

is

gear

ed t

o fa

cilit

ate

your

impo

rt a

nd e

xpor

t tr

ansa

ctio

ns

thro

ugh

soun

d tr

ansa

ctio

nal b

anki

ng s

olut

ions

.Ex

port

and

im

port

Let

ters

of

Cre

dit,

docu

men

tary

col

lect

ions

an

d op

en p

aym

ents

are

han

dled

in

a m

anne

r th

at e

nsur

es t

hat

the

clie

nt e

njoy

s a

smoo

th a

nd

hass

le fr

ee b

usin

ess

cond

uct w

ith

supp

liers

and

cus

tom

ers.

For m

ore

and

spec

ific d

etai

ls o

n th

e tr

ade

finan

ce s

olut

ions

kin

dly

dire

ct y

our

enqu

irie

s to

the

hea

d of

tra

de F

inan

ce a

t N

edba

nk o

n te

leph

one

num

bers

01

771

986/

09

99 9

66 3

75/0

888

827

258

or

the

trad

e fin

ance

offi

cer

on 0

1 82

0 47

7/08

81 6

67 3

23. Y

ou m

ay

also

em

ail

us o

n: c

kalil

ombe

@ne

dban

k.co

.mw

or

bchi

kong

a@ne

dban

k.co

.mw

SCA

LIN

G T

HE

HE

IGH

TSA

DV

ER

TOR

IAL

enjo

yabl

e an

d si

mpl

er,

we

are

also

look

ing

at

enha

ncin

g ou

r pr

oduc

t an

d se

rvic

e of

feri

ng to

key

cu

stom

er s

egm

ents

of t

he

coun

try.

Our

effo

rts

in

deve

lopi

ng s

uch

serv

ices

to

cat

er th

e m

any

need

s of

di

vers

e se

ctor

s in

Mal

awi

may

be

clea

rly

seen

in th

e ex

iste

nce

of th

e re

cent

ly

esta

blis

hed

part

ners

hip

FDH

Ban

k ha

s w

ith A

HL

Com

mod

ities

Exc

hang

e Li

mite

d (A

HC

X)

to p

rovi

de

finan

cing

for

prod

ucer

s an

d tr

ader

s. F

DH

Ban

k al

so

offe

rs S

truc

ture

d Tr

ade

and

Com

mod

ity F

inan

ce, t

he

art o

f tra

nsfe

rrin

g ri

sk in

fin

anci

ng tr

ansa

ctio

ns fr

om

part

ies

less

abl

e to

bea

r th

ose

risk

s to

thos

e m

ore

equi

pped

to b

ear

them

.

This

ser

vice

miti

gate

s ri

sks

and

prom

otes

the

cert

aint

y of

pre

dict

able

cas

h flo

ws,

re

duci

ng th

e ri

sk in

trad

e tr

ansa

ctio

ns a

nd m

akes

ba

nk d

eals

pos

sibl

e.Pr

oduc

ts a

nd s

ervi

ces

Bein

g th

e fir

st a

nd o

nly

loca

l ban

k, w

e al

way

s st

rive

to u

nder

stan

d th

e M

alaw

ian

mar

ket a

nd k

eep

loca

l bus

ines

ses

at th

e he

art o

f our

bus

ines

s, a

nd

as s

uch,

our

pro

duct

s an

d se

rvic

es a

re ta

ilor-

mad

e to

su

it th

e ne

eds

for

all.

FDH

Ban

k of

fers

a

wid

e ra

nge

of s

avin

gs

acco

unts

that

att

ract

no

man

agem

ent f

ees

and

are

easi

ly a

cqui

red

from

as

low

as

K20

0, n

ot fo

rget

ting

the

free

ATM

car

ds th

at

com

plim

ent t

he s

ervi

ce

pack

age

that

is o

ffere

d to

th

e cu

stom

er. O

ur P

erso

nal

and

Busi

ness

Cur

rent

ac

coun

ts o

ffer v

ario

us

flexi

ble

paym

ent m

etho

ds

to a

llow

cus

tom

ers

to

mak

e pa

ymen

ts o

r mon

ey

tran

sfer

s di

rect

ly to

thir

d pa

rtie

s th

roug

h ch

eque

s ra

ther

than

cas

h.

Apa

rt fr

om o

ur W

orki

ng

Cap

ital a

nd fl

exib

le

Pers

onal

loan

s, w

e ha

ve

rece

ntly

laun

ched

a s

hort

-te

rm le

ndin

g pr

oduc

t

know

n as

Kut

apa

Kha

shi—

a co

nven

ient

, dyn

amic

and

frie

ndly

sh

ort-

term

loan

faci

lity

that

is th

ere

to m

ake

your

life

eas

y in

tim

es o

f un

fore

seen

em

erge

ncie

s an

d ot

her

urge

nt n

eeds

suc

h as

med

ical

ex

pens

es, u

tility

bill

s, fu

nera

l ex

pens

es, t

rave

l, et

c. T

his

loan

is

read

ily a

vaila

ble

to a

ll sa

lari

ed F

DH

Ba

nk c

usto

mer

s, b

oth

old

and

new

, w

ho re

quir

e a

shor

t-te

rm lo

an to

ca

ter f

or e

mer

genc

ies.

FDH

take

s ban

king

to g

reat

er h

eigh

tsPA

GE

4

10

11SP

ECI

AL

PULL

OUT

TH

E N

ATIO

N 2

1 N

OVE

MB

ER

201

3SP

ECI

AL

PULL

OUT

TH

E N

ATIO

N 2

1 N

OVE

MB

ER

201

3

BLAN

TYRE

CAM

PUS

JANU

ARY –

JUNE

201

4 SE

MES

TER

Enro

ll in

to o

ur v

ariou

s CE

RTIF

ICAT

E &

DIPL

OMA

cour

ses

as fo

llows

:

1.

DIPL

OMA

IN JO

URNA

LISM

(2 YE

ARS)

TUITI

ON F

EES:

K25

0, 0

00.0

0 pe

r yea

r

2.

DIPL

OMA

IN G

RAPH

IC M

EDIA

STU

DIES

(PRI

NTIN

G)

(2 YE

ARS)

TUITI

ON F

EES:

K25

0, 0

00.0

0 pe

r yea

r

3.

DIPL

OMA I

N IN

DUST

RIAL

LABO

RATO

RY TE

CHNO

LOGY

(3

YEAR

S)

TUIT

ION

FEES

: K2

50, 0

00.0

0

4.

PAEC

ACC

OUNT

ING

PROG

RAM

MES

Ce

rtific

ate i

n Fin

ancia

l Acc

ount

ing

Ac

coun

ting T

echn

ician

/Dip

loma

A

Acco

untin

g Tec

hnici

an/D

iplom

a B

TUTI

ON F

EES:

K60

,000

.00

per s

emes

ter.

Stud

ents

to

pay r

egist

ratio

n an

d ex

am fe

es.

5.

ASSO

CIAT

ION

OF

BUSI

NESS

M

ANAG

ERS

AND

ADM

INIS

TRAT

ORS

(ABM

A)

LEVE

L 4,

5 &

6 DI

PLOM

A IN

Bu

sines

s Man

agem

ent

Co

mm

unity

and

Rur

al D

evelo

pmen

t

FU

LL T

UITI

ON F

EES:

K60

, 000

.00

Stud

ents

to p

ay re

gistra

tion

and

exam

fees

6.

ADM

INIS

TRAT

IVE

STUD

IES

( TEV

ETA

LEVE

L 4)

1 Ye

ar

TUIT

ION

FEES

: K6

0,00

0.00

per

Sem

este

rAp

plica

tion

form

s can

be c

ollec

ted

from

Poly

tecn

ic

Thes

e pro

gram

mes

are

sche

duled

to co

mm

ence

on:

11

Jan

uary

201

4 fo

r We

eken

d co

urse

s st

artin

g fro

m 8

:00

am

13

Janu

ary

2014

for F

ull T

ime

cour

ses

star

ting

from

8:0

0 am

LILO

NGW

E CA

MPU

S

JANU

ARY –

JUNE

201

4 SE

MES

TER

Enro

ll in

to o

ur v

ariou

s CE

RTIF

ICAT

E &

DIPL

OMA

cour

ses

as fo

llows

:

JANU

ARY –

JUNE

201

4 SE

MES

TER

1.

DIPL

OMA

IN JO

URNA

LISM

(2 YE

ARS)

TUIT

ION

FEES

: K2

50, 0

00.0

0 pe

r yea

r

2.

ASSO

CIAT

ION

OF

BUSI

NESS

M

ANAG

ERS

AND

ADM

INIS

TRAT

ORS

(ABM

A)

LEVE

L 4,

5 &

6 D

IPLO

MA

IN

Bu

sines

s Man

agem

ent

Co

mm

unity

and

Rur

al D

evelo

pmen

t

FULL

TUI

TION

FEE

S: K

60, 0

00.0

0

Stud

ents

to p

ay re

gistra

tion

and

exam

fees

Appl

icatio

n fo

rms

can

be c

ollec

ted

from

Kam

uzu

Colle

ge of

Nur

sing.

Th

ese p

rogr

amm

es a

re sc

hedu

led to

com

men

ce on

:

18

Jan

uary

201

4 fo

r We

eken

d co

urse

s st

artin

g fro

m 8

:00a

m

20

Janu

ary

2014

for F

ull T

ime

cour

ses

star

ting

from

8:0

0 am

MZU

ZU C

AMPU

SJA

NUAR

Y – JU

NE 2

014

SEM

ESTE

R

Enro

ll in

to o

ur v

ariou

s CE

RTIF

ICAT

E &

DIPL

OMA

cour

ses

as fo

llows

:

1.

DIPL

OMA

IN JO

URNA

LISM

(2 YE

ARS)

TUIT

ION

FEES

: K2

50, 0

00.0

0 pe

r yea

r

2.

ASSO

CIAT

ION

OF

BUSI

NESS

M

ANAG

ERS

AND

ADM

INIS

TRAT

ORS

(ABM

A)

LEVE

L 4

IN :

Bu

sines

s Man

agem

ent

FU

LL T

UITI

ON F

EES:

K60

,000

.00

Stud

ents

to p

ay re

gistra

tion

and

exam

fees

Th

ese p

rogr

amm

es a

re sc

hedu

led to

com

men

ce on

:

25

Jan

uary

201

4 fo

r We

eken

d co

urse

s st

artin

g fro

m 8

:00

am

BENE

FIT

FROM

THE

SUP

PORT

OF

HIGH

LY Q

UALI

FIED

, CO

MPE

TENT

AND

PRO

FESS

IONA

L ST

AFF

Appl

icatio

n fo

rms c

an b

e coll

ecte

d fro

m K

atot

o Sec

onda

ry

Clos

ing

date

for

rec

eivin

g ap

plica

tions

is 6

th D

ecem

ber,

2013

.

Appl

y now

, enc

losin

g cop

ies of

the r

eleva

nt ce

rtific

ates

to:

The

Dire

ctor

Co

ntin

uing

Edu

catio

n Ce

ntre

Pr

ivat

e Ba

g 30

3Ch

ichi

ri BL

ANTY

RE 3

TEL:

01 8

76 2

10/0

1 87

1 86

3 /0

1 87

0 41

1FA

X:

01

871

863

E-M

AIL:

cec

@po

ly.ac

.mw





Victoria Forex Bureau has announced that its fifth branch will open soon in Mzuzu.

The Bureau plays a pivotal role in providing foreign exchange to the general public travelling from Malawi. Victoria Forex Bureau has four other branches which are located in Blantyre, Kanabar House, opposite Sunbird Mount Soche; in Lilongwe at the Shoprite Centre, Old Town; in Limbe along Customs Road in Aram Mall and at Chileka Airport in the arrivals meeting area.

Patrick Tembo, Manager at Victoria Forex Bureau indicated that the company decided to open more branches to satisfy customers’ demand for forex services and to serve the residents and visi-tors of the fast growing city of Mzuzu. He said the foreign exchange company offers an efficient superior service.

“Our services are unique in the sense that we are fast and efficient and our rates are very attractive. Our friendly staff always gives a better service that our customers deserve. We also trade in major currencies that are accepted in this region of Africa and worldwide”.

“Victoria Forex Bureau is open and ready to discuss individual needs and requirements in all foreign transactions and offers competitive rates with no commission charges”, he said.

Victoria Forex Bureau’s services include buying and selling foreign currency, buying travellers’ cheques, Western Union and Moneygram services, cashing South African VAT cheques and enchasing of personal cheques.

Tembo says the public response has been impressive since the

Bureau was established in 1998. The Bureau has a strong loyal customer base and is a Malawian company that is proud to serve the people of Malawi.

“Our business premises are highly patronised because we do not compromise our services and our experience in the business is reputable and dependable. If you want the best competitive rates and excellent service, you now have a choice of five branches to meet your needs wherever you are in Malawi. Whatever your needs, we are flexible and urge you to visit one of our branches to discuss your requirements with us”, he said.

Victoria Forex Bureau started in small premises in Kanabar House and today it operates from mod-ern and secure locations.

Victoria Forex Bureau opens in Mzuzu

13


ADVERTISING SCALING THE HEIGHTS

14

SPECIAL PULLOUT THE NATION 21 NOVEMBER 2013 15SCALING THE HEIGHTSADVERTISING

SPECIAL PULLOUT THE NATION 21 NOVEMBER 2013 16ADVERTORIAL SCALING THE HEIGHTS

SPECIAL PULLOUT THE NATION 21 NOVEMBER 201317ADVERTISING SCALING THE HEIGHTS


ADVERTORIAL SCALING THE HEIGHTS

18

In a drive to deliver modern, convenient and superior banking services to its customers, Malawi Savings Bank Limited has introduced ATM Cash Deposit Facility—a modern, secure, innovative, unique and intelligent cash depositing system that gives customers more freedom to do banking transactions anytime every day.

This follows a survey which identified the risks that limited banking hours provide to customers. The bank discovered that customers were keeping their cash in unsafe places, waiting for the next day to make their deposits whereas others failed to deposit due to long queues in the banking halls, denying them freedom to do other important things in the day.

Through this ATM cash deposit facility, Malawi Savings Bank Limited is providing a total banking experience whereby one cannot only withdraw cash from the ATM but also deposit cash.

This is a self-deposit system which is easier, faster, convenient and

secure. A personalised banking experience of depositing money which does not involve filling deposit slips or standing on long endless queues in the banking hall.

As your own bank teller standing before the ATM, you simply have to follow these simple steps:

• Insert the ATM card and enter pin

• Select cash deposit option on the ATM screen and follow simple

instructions displayed on the ATM screen

• Insert cash directly into the deposit slot

• Verify the amount deposited on the ATM screen

People definitely might wonder how secure the facility is. As a matter of fact a receipt will be printed to verify the amount successfully deposited. This is proof enough to assure the customers

that their money has been deposited. The receipt actually shows the new balance in ones account after the deposit.

The ATM cash deposit facility accepts 4 biggest notes K1000, K500, K200 and K100. These are the same notes that the ATM dispenses when a customer is withdrawing on the ATM machines.

The ATM cash deposit facility will help the bank in reducing queues in the

ATM Cash Deposit: Unique, innovative facility

banking halls as more people are opting to deposit through the ATM at their own convenient time.

On the other hand, the ATM cash deposit facility offers the following benefits to the customers:

• Freedom to deposit cash anytime, any day, no waiting for banks to open.

• Freedom for customers to be their own

tellers.• Free ATM cash

deposit service.• Immediate credit

to their account.Malawi Savings

Bank Limited therefore encourages its existing customers who do not have ATM cards to visit their nearest Malawi Savings Bank Limited branch/agency and register for iCash ATM cards.

For those who are not yet Malawi Savings Bank Limited customers, they are encouraged to open accounts and register for the iCash ATM cards so that they can benefit from this amazing product.

The facility is currently available at Blantyre Branch, Limbe Branch, Lilongwe Branch, Lilongwe Mall agency and Mzuzu Branch.

The bank will roll over the facility to the other branches and agencies in a phased approach.

The ATM cash deposit facility is convenient, very easy to use and secure, giving customers more freedom. This is more than just ATM!

PHO

TOG

RAP

H: M

ALAW

I SAV

ING

S B

ANK

Malawi Savings Bank customers can now deposit money on ATMs

Standard Bank: Moving you forward in instilling a saving cultureIn a bid to instil a culture of saving among its customers, Standard Bank, one of Malawi’s leading banks says it has a wide range of products that make it convenient and easy for customers to grow their savings and also to make it a part of their lifestyle. The range of products is wide, and aligned to the needs of customers because the bank understands that each customer is unique.

Head of Personal and Business Banking Margaret Kubwalo-Chaika says the bank offers high value savings as well as asset and life protection packages through its Bancassurance offering.

Standard Bank’s savings products range from a traditional savings accounts to a saverplus, Pure Save and Contractsave accounts, which according to Kubwalo-Chaika were introduced as a way of ensuring that Malawians are encouraged to a build a true saving culture to empower themselves financially during a rainy day.

“Like Murphy’s Law, problems come when one is completely out of pocket. This is more critical in Malawi where most people are not used to saving for eventualities. As a bank we thought of introducing products that would incentivise a habit of saving,” said Kubwalo-Chaika.

She said pure save account is offered with no monthly management fees and a predetermined monthly direct debit and is linked to a transactional account such as a current account. This encourages customers to have the zeal and discipline of saving by discouraging regular withdrawals and also by it’s very design of being a wallet within your usual banking account. By setting finds in the wallet on the side, the customer can make payments and spend from their current account while keeping the side pocket in tact.

“The minimum opening balance for Puresave is K2000 making it easy for anyone to start saving,” said Kubwalo-Chaika. “Customers can set up a monthly debit order on their transactional account to go to this account so as to grow their savings.”

Kubwalo-Chaika said the account accrues a daily interest rate of 10 percent which is paid quarterly to the holder’s account. The account has an additional benefit of having a death cover that doubles ones balance of up to K100 000 upon death of the primary account holder. The money is paid to a nominated beneficiary.

Another account tailor made to promote the saving culture is

the Contractsave Account. This enables customers to determine the kind of future they want to have when they retire from active work by taking control of their own savings.

“There is a general feeling that saving money is difficult. Contractsave account removes the burden off the shoulders of customers who think they cannot afford to save by entering into a contract with Standard Bank to save for an important event of their life be it wedding, retirement or education,” she said.

The minimum balance for this account is K10 000. Customers can open an account or set up a monthly standing order with any amount above K10 000. This account has a duration of 3 to 12 months with an option of rolling it further for those who want to save for a longer period of time. The standing order also ensures that customers are encouraged to set aside a certain amount every month in order to grow the minimum balance.

“No monthly management fees are charged on this account to encourage customers to separate their savings from normal transactional accounts whilst preserving the savings value. Standard Bank believes in offering its customer’s added value at all times and hence

a Contractsave account offers customers the option of a life benefit of K500, 000 paid to a nominated beneficiary upon the death of the primary account holder and is targeted at the more affluent of our customers as opposed to the puresave account,” said Kubwalo-Chaika.

The savings accounts are not all that Standard Bank offers, insurance services are also available to its customers. Standard Bank is the pioneer of Bancassurance services in Malawi and is backed by more than 100 years of experience within the Standard Bank Group. Bancassurance services are offered to the bank’s customers to preserve customer’s assets financed by the bank as well as offer automatic debt settlement upon the death of a customer whilst the asset or loan financed is still owed to the bank.

“Standard Bank’s home loan and vehicle and asset finance customers are offered in house insurance to protect the financed assets against damage or theft at affordable rates and great convenience as all the services are offered under one roof. Whilst the actual Insurance risk is underwritten by reputable Insurers, claims handling is also facilitated by the bank to ensure that the customer is offered efficient service which tends

to also be very convenient,” Kubwalo-Chaika said.

The bank also offers automatic debt settlement insurance to all its personal loan, Vehicle and asset finance as well as home loan customers to ensure that upon the unfortunate event of death of the customer, the surviving family members do not inherit the burden of having to service the outstanding loan nor face the trauma of asset repossession by the bank.

The asset is simply handed over to the family so that they can continue to live comfortably whilst the other life covers that the breadwinner could have had taken, goes towards supporting the other daily needs of the family like education, food, clothing, among others

“As a bank we do not take for granted the privilege of being associated with these life changing products as we have witnessed beneficiaries of our customers’ estate spared of the trauma of having cars and homes repossessed as we have automatically settled their loans with substantial balances without having to touch an individual’s terminal benefits. Come and experience our world of banking convenience that puts you first,” asserts Kubwalo-Chaika tongue in cheek.



The Medical Aid Society of Malawi (Masm) in September 2007 launched the Emergency Medical Service (EMS) after seeing a gap in the first aid response in the country.

The targets were people who had emergencies at home, workplaces and other accident areas throughout the country.

Masm call centre manager Kwangu Gomba Kamanga said her organisation introduced EMS to ensure that people are getting quality services.

“When EMS was introduced, we decided to make it a 24-hour service and base it at medical institutions because of some facilities they have such as laundry, sluice and incinerator rooms help us in our work,” she said.

EMS plays a crucial role in helping people who experience emergencies anywhere, any time. Masm has not only assisted


19

Masm closes first aid response gap with EMS ambulances

people in Malawi, but also Malawians travelling in our neighbouring countries like Zambia, Tanzania and Mozambique.

“We work hand in hand with international organisations such as Medical Air Rescue Service (Mars) Zimbabwe, International SOS South Africa, Net Care South Africa, Euro Assist, Africa Assist and ER 24,” said Kamanga.

During former president Bingu wa Mutharika’s funeral, EMS ambulance was the VIP ambulance.

The Ministry of Health also asked EMS to cover presidents who came to attend the funeral from Chileka Airport to Mount Soche.

“What is more pleasing is that we have been able to save lives in cases of accidents through EMS. When KIPS restaurant building collapsed in Blantyre, EMS was the first team to respond and it saved a lot of lives,” said Kamanga.

She cited poor infrastructure such as roads

and the indifference some motorists show when they hear EMS ambulances’ sirens as major challenges.

“Some motorists do not want to pave way for EMS ambulances when they hear the sirens,” said Kamanga.

Masm EMS has five ambulances and employs 10 nurses and 10 technicians at their three bases of Mwaiwathu Hospital in Blantyre, Lingadzi Masm Medi Clinic in Lilongwe and Katoto Masm Medi Clinic in Mzuzu.

“Our crew was trained in advanced life support, intermediate life support and basic life support at Mars in Zimbabwe,” she said.

She said from time to time the crew undergoes refresher courses to update their knowledge and remain on track.

Kamanga urged people to contact Masm EMS in cases of emergencies.

“We provide quality services, 24 hours in a day and we are helping to save a lot of lives,” she said.


Nico Holdings Limited is a conglomerate with subsidiary companies throughout Africa.

Nico was also the first company to list on the Malawi Stock Exchange in 1996.

Nico is involved in general insurance, life insurance, pension a d m i n i s t r a t i o n , banking, mortgage finance, lease finance and information systems, among others.

The group’s corporate strategy is to expand representation and operations in the whole of the Common Market for Eastern and Southern African (Comesa) Region.

To date, Nico has insurance companies in Malawi, Mozambique, Tanzania, Uganda and Zambia.

In unaudited financial

Nico Holdings revenue up 85%statements for the half year ended 30 June 2013, the group reported significant improvement compared to the same period in 2012. This is despite operating in a challenging economic and business environment.

The group’s gross revenue grew by 85 percent from K16.5 billion in 2012 to K30.4 billion in 2013.

Profit before transfer of policyholders ‘Future Benefits’ increased from K3.6 billion in 2012 to K9.4 billion in 2013, resulting in an increase in profit before tax from K110 million in 2012 to K3.7 billion in 2013.

Profit after tax was K2.6 billion in 2013 compared to a loss after tax of K237 million in 2012.

Nico Holdings managing director, Felix Mlusu said the past six months have been better than the last year.

He attributed this to good strategies despite the harsh economic environment in the country.

“Due to strategies that were in place and also on account of diversity and robustness of the portfolio, the group registered satisfactory investment returns.

“Depreciation of the currency and high interest rates have, however, impacted us and our customers negatively. Even though the inflation rate has improved, we are yet to feel the benefits of the declining inflation,” he said.

The General Insurance business achieved premium income growth of 76 percent over the year to K10.6 billion. There was significant improvement in claims and premium collection management, resulting in the division registering satisfactory operating profit in the half year.


Rennies Foreign Exchange Bureau is a wholly owned subsidiary of the Bidvest Group Limited, an international trading and services JSE-listed company that operates on three continents.

Our customers expect the best value for their money, and rather than make big promises, we are the foreign exchange bureau that delivers our highest customer expectations. As specialist in money management, we are very conscious of our duty to do business in a responsible way and that is just the way forex business should be.

We are a fully-fledged foreign exchange dealer with a reputation as the market leader in the foreign exchange as well as inward money transfers for both MONEYGRAM ™and WESTERN UNION ™. With these two reputable services, you can receive money sent by your relatives from abroad within 10 minutes as we have the fastest and friendly service.

With more than 19 years of involvement in foreign exchange in Malawi, we have the knowledge and expertise to understand your business. This helps

JOHN CHIRWASTAFF WRITER

Development activities taking place in Mzuzu City have not eluded the financing and banking industry. A stand-alone forex bureau, MSC Forex Bureau, has been introduced to offer alternatives to clients.

MSC, introduced in January this year, is the only forex bureau in Mzuzu that is not attached to a commercial bank.

MSC branch manger Joseph Mwalwanda said the bureau has been introduced to offer clients an option of getting services from a private bureau.

“People in Mzuzu

Rennies providing quality and fast services

MSC Forex Bureau easing access to forex in Mzuzu

ADVERTORIAL SCALING THE HEIGHTS

us to provide to you the best solutions.

We focus on all major currencies through a correspondent global network, we are a leading dealer of foreign bank notes in Malawi namely United States dollar, British pound, Botswana pula, Chinese yuan, Canadian dol lar,euro,Austarian dollars, United Arab Emirates dirham, Mozambican metical, South Africa rand and Tanzanian shilling as well as encashing foreign currency personal cheques. Recently, we have been the first foreign exchange bureau to offer a range of innovative pre-paid currency cards supported by the international Visa network.

The World Currency Card™ offer travellers the chance to carry travel funds safely through unfamiliar countries and cities with ease. For years there have been a certain degree of paranoia regarding the safe transportation of money when travelling through foreign countries. Rennies Foreign Exchange offers a solution that conveniently simplifies the safe carrying of

travelling money abroad.The Bidvest Bank

World Currency Card™ is issued to customers immediately and can be used as soon as the overseas travel destination is reached, your funds are accessible in the currency of your destination. Use your card at over two million Visa—accredited ATMs worldwide and cash points to make payments. The pre-loaded cards are convenient, safe and cost effective.

With pre-loaded currency, there is no need to worry about fluctuating exchange rates, cheaper to use than a credit card as there are no merchant fees to pay. They have pin and signature protected for extra security. You can track your spending with instant text or email notification. If you lost your card, we will replace it within 24 hours.

To make use of any of our product or services, you do not need to hold a bank account with us. On top of that, NO COMMISSION is charge in all of our services. So why not take advantage of our knowledge and expertise? We are here to provide you with the best options available across a wide range of services.

have been exchanging currencies in banks only. There is no any other stand-alone forex bureau apart from us. So, we want to give clients more options from the services offered by banks.

“Unlike banks, we don’t charge commissions or service charges. We exchange currency according to the rate of that day,” he said.

MSC is situated near Mzuzu Market, opposite Immigration Offices. The bureau is presently operating in Mzuzu only.

But Mwalwanda said they plan to open offices in Karonga and Nkhata Bay in the near future.

“We are operating in Mzuzu because it is a fast growing city, and we would want to grow with it. But with progress, we also plan to move to Karonga and Nkhata Bay because the market is also growing in these districts,” he said.

MSC presently offers selling and buying of forex in the major currencies of dollar, pound, rand and euro.

“We want our customers to recognise our company first before we move into other services such as western union,” he added.

MSC was certified by the Reserve Bank of Malawi (RBM) to operate as a bureau in January this year.

20

Documents

Banking and Finance Supplement