Malawi - Financial Sector Technical Assistance Project

Abstract*

The Financial Sector Technical Assistance Project aims to increase access to finance for the currently unbanked, but bankable, population of Malawi. There are five components to the project, the first component being financial sector regulation and supervision. This component will assist the Reserve Bank of Malawi (RBM) to strengthen the national financial sector regulation and supervision framework for banking, capital markets, microfinance, and... Show More

Development Objective

The project aims to increase access to finance for the currently unbanked, but bankable, population of Malawi.

Key Details

Project Details

Project ID
P122616
Status
Closed
Team Leader
Thilasoni Musuku , Efrem Chilima
Borrower 2
Ministry of Finance, Economic Planning and Development

Country
Malawi
Disclosure Date
February 9, 2011
Approval Date
(as of board presentation)
March 24, 2011
Effective Date
December 22, 2011

Total Project Cost 1
US$ 28.20 million
Implementing Agency
Reserve Bank of Malawi
Region
Eastern and Southern Africa
Fiscal Year 3
2011

Commitment Amount
US$ 28.20 million
Environmental Category
C
Environmental and Social Risk
Not Applicable
Closing Date
June 29, 2018

Last Stage Reached
BANK APPROVED
Last Update Date
July 15, 2022

Notes
1. Total project cost includes funding from World Bank and non-bank sources in US$ millions. Active and Closed projects show current commitments. Proposed (pipeline) and dropped projects show the forecast amount. The commitment amount for projects in the pipeline is indicative and may be modified during the project preparation.
2. Borrower refers to the Borrower of a Loan or Recipient of a Grant.
3. ”Fiscal Year” is the fiscal year in which the project was approved (or dropped if the status is dropped). The World Bank's fiscal year is from July 1 - June 30. For example, a fiscal year of 1996 corresponds to July 1, 1995 - June 30, 1996.

Sectors

Themes

FY17 - Finance

FY17 - Financial Infrastructure and Access31%
- FY17 - Financial inclusion31%
FY17 - Financial Stability24%
- FY17 - Financial Sector Integrity12%
- FY17 - Financial Sector oversight and policy/banking regulation & restructuring12%

FY17 - Private Sector Development

FY17 - Business Enabling Environment40%
- FY17 - Regulation and Competition Policy40%

FY17 - Public Sector Management

FY17 - Public Administration6%
- FY17 - State-owned Enterprise Reform and Privatization6%

Project Map

Interactive Map

Finances

Financing Plan (US$ Millions)

Financier	Commitments
IDA Credit	28.20

Total Project Financing (US$ Millions)

Product Line	IBRD/IDA
IBRD Commitment	N/A
IDA Commitment	28.20
IBRD + IDA Commitment	28.20

Lending Instrument
Grant Amount	N/A
Total Project Cost**	28.20

Summary Status of World Bank Financing (US$ Millions) as of April 30, 2025

No data available.

Detailed Financial Activity as of April 30, 2025

Download:

Period	Financier	Transaction Type	Amount (US$)
Feb 3, 2016	IDA-48970	Int Charges	552.82
Feb 3, 2016	IDA-48970	Int Charges	552.82
Feb 3, 2016	IDA-48970	Int Charges	60,486.58
Feb 3, 2016	IDA-48970	Int Charges	60,486.58
Mar 14, 2016	IDA-48970	Loan Disb	820,000.00
May 18, 2016	IDA-48970	Loan Disb	826,000.00
Aug 9, 2016	IDA-48970	Int Charges	460.86
Aug 9, 2016	IDA-48970	Int Charges	460.86
Feb 13, 2015	IDA-48970	Int Charges	264.23
Feb 13, 2015	IDA-48970	Int Charges	47,324.51
Feb 13, 2015	IDA-48970	Int Charges	47,324.51
Jul 16, 2015	IDA-48970	Loan Disb	1,400,000.00
Aug 6, 2015	IDA-48970	Int Charges	52,686.97
Aug 6, 2015	IDA-48970	Int Charges	52,686.97
Aug 1, 2015	IDA-48970	Int Charges	1,615.43
Aug 1, 2015	IDA-48970	Int Charges	1,615.43
Apr 1, 2014	IDA-48970	Loan Disb	2,450,000.00
Jul 16, 2014	IDA-48970	Loan Disb	1,890,000.00
Aug 12, 2014	IDA-48970	Int Charges	350.64
Aug 12, 2014	IDA-48970	Int Charges	350.64
Aug 12, 2014	IDA-48970	Int Charges	39,501.80
Aug 12, 2014	IDA-48970	Int Charges	39,501.80
Mar 6, 2015	IDA-48970	Loan Disb	2,180,000.00
Feb 13, 2015	IDA-48970	Int Charges	264.23
Oct 20, 2014	IDA-48970	Loan Disb	860,000.00
Aug 8, 2013	IDA-48970	Loan Disb	959,370.00
Aug 8, 2013	IDA-48970	Int Charges	37.74
Aug 8, 2013	IDA-48970	Int Charges	37.74
Aug 8, 2013	IDA-48970	Int Charges	17,584.89
Aug 8, 2013	IDA-48970	Int Charges	17,584.89
Feb 5, 2014	IDA-48970	Int Charges	284.38
Feb 5, 2014	IDA-48970	Int Charges	284.38
Feb 5, 2014	IDA-48970	Int Charges	25,837.13
Feb 5, 2014	IDA-48970	Int Charges	25,837.13
Jan 21, 2014	IDA-48970	Loan Disb	1,940,000.00
Mar 24, 2011	IDA-48970	Loan Commitment	28,200,000.00
Aug 14, 2024	IDA-48970	Loan Repay	80,711.92
Aug 14, 2024	IDA-48970	Loan Repay	154,602.58
Aug 14, 2024	IDA-48970	Int Charges	24.72
Aug 6, 2021	IDA-48970	Int Charges	94,604.15
Aug 6, 2021	IDA-48970	Int Charges	94,604.15
Aug 6, 2021	IDA-48970	Loan Repay	252,277.86
Aug 6, 2021	IDA-48970	Int Charges	420.57
Aug 6, 2021	IDA-48970	Int Charges	420.57
Feb 4, 2021	IDA-48970	Loan Cancel	554,622.50
Aug 1, 2020	IDA-48970	Int Charges	177.00
Aug 1, 2020	IDA-48970	Int Charges	177.00
Aug 1, 2020	IDA-48970	Int Charges	92,880.38
Aug 1, 2020	IDA-48970	Int Charges	92,880.38
Jan 26, 2021	IDA-48970	Loan Disb	-553,140.20
Feb 2, 2021	IDA-48970	Int Charges	2,883.87
Feb 2, 2021	IDA-48970	Int Charges	2,883.87
Feb 12, 2020	IDA-48970	Int Charges	92,685.04
Feb 12, 2020	IDA-48970	Int Charges	92,685.04
Feb 1, 2020	IDA-48970	Int Charges	307.34
Feb 1, 2020	IDA-48970	Int Charges	307.34
Aug 2, 2019	IDA-48970	Int Charges	1,014.20
Aug 2, 2019	IDA-48970	Int Charges	1,014.20
Aug 2, 2019	IDA-48970	Int Charges	93,185.65
Aug 2, 2019	IDA-48970	Int Charges	93,185.65
Jun 22, 2018	IDA-48970	Loan Disb	1,185,326.10
Feb 1, 2019	IDA-48970	Int Charges	322.17
Feb 1, 2019	IDA-48970	Int Charges	322.17
Feb 1, 2019	IDA-48970	Int Charges	93,548.19
Feb 1, 2019	IDA-48970	Int Charges	93,548.19
Feb 14, 2018	IDA-48970	Int Charges	2,050.61
Feb 14, 2018	IDA-48970	Int Charges	2,050.61
Dec 7, 2017	IDA-48970	Loan Disb	-1,066,980.90
Dec 7, 2017	IDA-48970	Loan Disb	1,066,980.90
Aug 7, 2018	IDA-48970	Int Charges	2,023.59
Aug 7, 2018	IDA-48970	Int Charges	2,023.59
Aug 7, 2018	IDA-48970	Int Charges	91,445.07
Aug 7, 2018	IDA-48970	Int Charges	91,445.07
Mar 30, 2017	IDA-48970	Loan Disb	1,420,000.00
Aug 2, 2017	IDA-48970	Int Charges	3,854.58
Aug 2, 2017	IDA-48970	Int Charges	3,854.58
Aug 2, 2017	IDA-48970	Int Charges	84,038.85
Aug 2, 2017	IDA-48970	Int Charges	84,038.85
Jul 20, 2017	IDA-48970	Loan Disb	1,000,000.00
Feb 14, 2018	IDA-48970	Int Charges	91,759.81
Feb 14, 2018	IDA-48970	Int Charges	91,759.81
Aug 9, 2016	IDA-48970	Int Charges	64,835.14
Aug 9, 2016	IDA-48970	Int Charges	64,835.14
Feb 7, 2017	IDA-48970	Int Charges	65,008.19
Feb 7, 2017	IDA-48970	Int Charges	65,008.19
Feb 1, 2017	IDA-48970	Int Charges	534.97
Feb 1, 2017	IDA-48970	Int Charges	534.97
Dec 1, 2016	IDA-48970	Loan Disb	1,624,000.00
Dec 22, 2016	IDA-48970	Loan Disb	1,850,000.00
Aug 14, 2024	IDA-48970	Int Charges	24.72
Aug 14, 2024	IDA-48970	Int Charges	79,811.71
Aug 14, 2024	IDA-48970	Int Charges	79,811.71
Feb 6, 2024	IDA-48970	Int Charges	4.89
Feb 6, 2024	IDA-48970	Int Charges	83,559.91
Feb 6, 2024	IDA-48970	Int Charges	83,559.91
Feb 6, 2024	IDA-48970	Loan Repay	234,554.20
Feb 6, 2024	IDA-48970	Int Charges	4.89
Feb 6, 2024	IDA-48970	Int Charges	2,230.97
Feb 6, 2024	IDA-48970	Int Charges	2,230.97
Aug 1, 2024	IDA-48970	Loan Repay	1,952.30
Aug 2, 2023	IDA-48970	Int Charges	83,134.19
Aug 2, 2023	IDA-48970	Int Charges	8,672.35
Aug 2, 2023	IDA-48970	Int Charges	8,672.35
Aug 2, 2023	IDA-48970	Loan Repay	237,195.20
Aug 2, 2023	IDA-48970	Int Charges	4.81
Aug 2, 2023	IDA-48970	Int Charges	4.81
Aug 2, 2023	IDA-48970	Int Charges	83,134.19
Feb 10, 2022	IDA-48970	Loan Repay	243,588.02
Feb 10, 2022	IDA-48970	Int Charges	25.90
Feb 10, 2022	IDA-48970	Int Charges	25.90
Feb 10, 2022	IDA-48970	Int Charges	91,269.23
Feb 10, 2022	IDA-48970	Int Charges	91,269.23
Feb 1, 2022	IDA-48970	Loan Repay	5,067.19
Feb 2, 2023	IDA-48970	Int Charges	40.07
Feb 2, 2023	IDA-48970	Int Charges	40.07
Feb 2, 2023	IDA-48970	Int Charges	78,666.28
Feb 2, 2023	IDA-48970	Int Charges	78,666.28
Feb 1, 2023	IDA-48970	Loan Repay	6,913.57
Feb 2, 2023	IDA-48970	Loan Repay	233,487.98
Aug 9, 2022	IDA-48970	Int Charges	989.67
Aug 9, 2022	IDA-48970	Int Charges	989.67
Aug 9, 2022	IDA-48970	Loan Repay	233,934.23
Aug 9, 2022	IDA-48970	Int Charges	42.96
Aug 9, 2022	IDA-48970	Int Charges	42.96
Aug 9, 2022	IDA-48970	Int Charges	85,970.82
Aug 9, 2022	IDA-48970	Int Charges	85,970.82
Feb 2, 2021	IDA-48970	Int Charges	96,962.65
Feb 2, 2021	IDA-48970	Int Charges	96,962.65

Footnotes

Ratings

IMPLEMENTATION RATINGS

Name	Review	Date
Progress towards achievement of PDO	Moderately Satisfactory	2018-06-15
Procurement	Satisfactory	2018-06-15
Financial Management	Satisfactory	2018-06-15
Monitoring and Evaluation	Satisfactory	2018-06-15
Overall Implementation Progress (IP)	Satisfactory	2018-06-15
Project Management	Satisfactory	2018-06-15

COMPLETION RATINGS

INDICATOR	IMPLEMENTATION COMPLETION & RESULTS REPORT: 05-29-2019
Outcomes	Moderately Satisfactory
Risk to Development Outcome
Bank Performance	Moderately Satisfactory
Borrower Performance
Government Performance
Implementing Agency

INDEPENDENT EVALUATION RATINGS

INDICATOR	ICR REVIEW: 08-13-2019	PROJECT PERFORMANCE ASSESSMENT REPORT:
Outcome Rating	Satisfactory	N/a
Risk To Development Outcome		N/a
Bank Performance	Satisfactory	N/a
Borrower Performance		N/a
Government Performance	Not Rated	N/a
Implementing Agency		N/a
Icr Quality	Substantial	N/a
M&e Quality	Substantial	N/a

Results Framework

PROJECT DEVELOPMENT OBJECTIVE INDICATORS

INDICATOR		BASELINE	CURRENT	TARGET

PDO Indicator One: Increase in the percentage of the adult population that use formal financial institutions. Value 19.00 40.00 50.40
Date March 24, 2011 June 29, 2018 May 30, 2018
Comment
PDO Indicator Three: Agency banking regulations operational Value 0 450 468
Date December 3, 2012 June 29, 2018 February 28, 2018
Comment

Sub-indicator Four (a): Transactions volume and value processed by ATS (numeric/percentage, custom)	Value	Volume: 2,080,441 Value (MK bn): 3,415	Volume: 4,349,952 (209%) Value (MK bn): 5,011 (14	Volume: 21,220,986 Value (MK bn): 73,415
	Date	March 24, 2011	June 29, 2018	April 30, 2018
	Comment

Sub-indicator Four (b): Transactions volume and value processed by National Switch (numeric/percentage, custom)	Value	None: no interoperable switch existed	Volume: 5,399,428 (936%) Value (MK bn): Deliberat	Volume: 5,390,276 Value (MK bn): 83.51
	Date	March 24, 2011	June 29, 2018	December 31, 2017
	Comment

PDO Indicator Four: Transactions volume and value processed by new payments systems (ATS, National Switch, MFI TPH)	Value	See sub-indicator below	See sub-indicator below	See sub-indicator below
	Date	March 24, 2011	June 29, 2018	April 30, 2018
	Comment

Sub-indicator Four (c): Transactions volume and value processed by MFI Hub (numeric/percentage, custom)	Value	None: no MFI Hub existed	At least 5 institutions to go live by June 2018	Being implemented
	Date	March 24, 2011	June 29, 2018	December 31, 2017
	Comment

PDO Indicator Five: Proportion of financially literate population (text, custom) (The values are an index that ranges from 0 (illiterate) to 7 (highly literate) based on a baseline survey	Value	3.60	4.80	3.90
	Date	August 29, 2014	June 29, 2018	May 30, 2018
	Comment

PDO Indicator Six: Proportion of financially literate women in the population (text, custom) - (The values are an index that rangesfrom 0 (illiterate) to 7 (highly literate)	Value	3.40	4.40	3.60
	Date	August 29, 2014	June 29, 2018	May 30, 2018
	Comment

PDO Indicator Two: Increase in the proportion of women within the adult population that is formally banked. Value 17.00 40.00 38.50
Date March 24, 2011 June 29, 2018 May 30, 2018
Comment

INTERMEDIATE RESULTS INDICATORS

INDICATOR		BASELINE	CURRENT	TARGET

Indictor One: Key regulations and supervision manuals issued to support implementation of the 10 new financial laws which have beenpassed recently or to be passed over the life of the project.	Value	Existing regulatory framework needs to be upgraded	Key regulations and supervision manuals developed	Regulations related to the 10 laws that were passe
	Date	March 24, 2011	June 29, 2018	April 3, 2018
	Comment

Indicator five: Number of participating members of all 3 payment systems (text, custom)	Value	a) Proposed National Switch not yet operational b	a) 6 banks on National Switch. b) 6 banks on ATS	a) All 9 banks on National Switch and live on ATMs
	Date	December 22, 2011	June 29, 2018	April 30, 2018
	Comment

Indicator Six: Increased number, value, volume of POS, ATMs and mobile payments (text, custom) Value See below See below See below
Date December 31, 2012 June 29, 2018 May 30, 2018
Comment

Indicator 7: Approved road-map for implementation of government EFT payment program (text, custom)	Value	No roadmap for implementation of government EFT pa	Broad-based ownership and acceptance of an 18-mont	The EFT roadmap finalized and its implementation c
	Date	December 22, 2011	June 29, 2018	April 3, 2018
	Comment

Indicator 8: Legal and regulatory framework for consumer protection prepared and presented to Cabinet (text, custom)	Value	The Financial Services Act includes some major pro	Action plan on financial consumer protection with	Third (final) priority regulations drafted; these
	Date	December 22, 2011	June 29, 2018	April 3, 2018
	Comment

Indicator 9: Institutional arrangements for consumer protection in all financial services implemented	Value	RBM's consumer protection unit (CPFL) has been cre	Priority measures of institutional strengthening p	The CPFL drafted Alternative Dispute Resolution (A
	Date	December 22, 2011	June 29, 2018	April 3, 2018
	Comment

Indicator 10: Increased awareness of rights as financial consumers among population reached by financial literacy campaign (text, custom)	Value	Consumer rights in financial services is a nascent	Consumer rights awareness: Baseline+15%Financial	During the baseline, 36.2% of the population was n
	Date	December 22, 2011	June 29, 2018	April 3, 2018
	Comment

Indicator 11: RBM institutional capacity has been enhanced for consumer protection supervision (text, custom)	Value	No training or developed processes and procedures	All existing staff trained (i.e. individual struct	Except for staff employed in the two years prior t
	Date	December 22, 2011	August 31, 2017	May 30, 2018
	Comment

Indicator 12: State ownership policy in financial sector developed, published, and implemented (text, custom)	Value	No explicit state-ownership policy has been issued	State ownership policy implemented issuance of par	Ownership regulations for statutory bodies in Mala
	Date	December 22, 2011	August 31, 2018	April 3, 2018
	Comment

Indicator 13: Core functions of the FSPU (Financial Sector Policy Unit) executed by appropriately trained staff (text, custom)	Value	Role of Ministry of Finance in financial sector po	100% of FSPU staff trained and annual business pla	No training was planned for the 8-month extension
	Date	December 22, 2011	August 31, 2017	April 3, 2018
	Comment

Indicator 13: Core functions of the FSPU (Financial Sector Policy Unit) executed by appropriately trained staff (text, custom)	Value	Role of Ministry of Finance in financial sector po	100% of FSPU staff trained and annual business pla	No training was planned for the 8-month extension
	Date	December 22, 2011	August 31, 2017	April 3, 2018
	Comment

Indicator 14: Policy frameworks for provision of long term financing developed; including (i) equity and debt/leasing financing, (ii) PPP for infrastructure, and (iii) development of long term savings	Value	Long term financing is a nascent concept in Malawi	Policy framework adoptedDetailed sectoral review	Issues paper on long term finance was developed an
	Date	December 22, 2011	August 31, 2017	May 30, 2018
	Comment

Indicator Two: Automated tools for offsite surveillance and macro-prudential analysis designed, acquired and implemented.	Value	Offsite and macro-prudential analysis is not suppo	Analytical tools for offsite monitoring and analys	The Bank Supervision Application (BSA) was enhance
	Date	March 24, 2011	June 29, 2018	April 3, 2018
	Comment

Sub-indicator Six (a): Number, value, volume of POS (text, custom breakdown)	Value	Number: 688 Vol: 183,248 Value (MK mn): 3,548	Number: - Vol: 245,570 (134 %) Value (MK mn): 6,	Number: 1,576 Vol: 2,556,541 Value (MK mn): 101,
	Date	December 31, 2012	June 29, 2018	May 30, 2018
	Comment

Sub-indicator Six (b): Number, value, volume of ATMs (interbank) (numeric, custom breakdown)	Value	Number: 373 Volume: 17,217,584 Value (MK bn): 0.	Number: Not defined Volume: 23,073,209 (134%) Va	Number: 481 Volume: 136,907,780 Value: (MK bn) 2
	Date	December 31, 2012	June 29, 2018	May 30, 2018
	Comment

Sub-indicator (c1): Number, value, volume of MNO-led mobile payments (text, custom breakdown)	Value	Number: 185,758 Volume: 698,419 Value (MK bn): 1	Number: Not defined Volume: 11,717,526 (1,678%)	Number: 4,581,992 Volume: 333,395,067 Value (MK
	Date	December 31, 2012	June 29, 2018	May 30, 2018
	Comment

Sub-indicator (c2): Number, value, volume of Bank-led mobile payments (text, custom breakdown)	Value	Number: 176,907 Volume: 3,633,484 Value (MK mn):	Number: --- Volume: 4,869,216 (134%) Value (MK m	Number: 952,702 Volume: 75,072,703 Value (MK mn)
	Date	December 31, 2012	June 29, 2018	May 30, 2018
	Comment

Indicator Three: RBM staff trained in uses of analytical tools and regarding new regulations (text, custom breakdown)	Value	No automated analytical tools are available and st	100% of staff trained	All relevant staff trained in the enhanced BSA
	Date	March 24, 2011	June 29, 2018	April 3, 2018
	Comment

Indicator Four: Modern financial infrastructure deployed and operational Value See sub indicator below See sub indicator below See sub indicator below
Date March 24, 2011 June 29, 2018 April 3, 2018
Comment

Sub-indicator 4(a): National Switch deployed and operational	Value	Outdated financial infrastructure	National Switch live and operational.MNOs and MF	Modern National Switch live and operational. Inter
	Date	March 24, 2011		April 3, 2018
	Comment

Sub-indicators 4(b): ATS/CSD deployed and operational	Value	Outdated financial infrastructure.	ATS live and operational.	ATS live since December 2014 and operating smoothl
	Date	March 24, 2011		April 3, 2018
	Comment

Sub-Indicator 4(c): Microfinance Transaction Hub deployed and operational	Value	Outdated financial infrastructure	Installation, commissioning and stabilization of M	Data migration and verification completed for 16 p
	Date	March 24, 2011		April 3, 2018
	Comment

PDO Indicator One: Increase in the percentage of the adult population that use formal financial institutions.	Value	19.00	40.00	50.40
	Date	March 24, 2011	June 29, 2018	May 30, 2018
	Comment

PDO Indicator Two: Increase in the proportion of women within the adult population that is formally banked.	Value	17.00	40.00	38.50
	Date	March 24, 2011	June 29, 2018	May 30, 2018
	Comment

Indicator Six: Increased number, value, volume of POS, ATMs and mobile payments (text, custom)	Value	See below	See below	See below
	Date	December 31, 2012	June 29, 2018	May 30, 2018
	Comment

Indicator Four: Modern financial infrastructure deployed and operational	Value	See sub indicator below	See sub indicator below	See sub indicator below
	Date	March 24, 2011	June 29, 2018	April 3, 2018
	Comment