are reached with financial services. on one hand, we know that malawi is predominantly a cash based society to the extent that 75 % of the cash in the economy is outside the banking system leaving only 25 % in the banking system. going forward, we need to reverse this trend and ensure that all malawians are reached with various financial services and products so that people can intelligently invest their money and also be able to access capital for their various needs. a practical example is where if one had k100 in 1996, then he / she decided to keep it in the pocket, it could remain k100 today but with inflation, that money could have lost value in terms of how much that money could buy today. if it was put in savings account in the bank, it could be around k2, 300 with interest by now. if it was invested in treasury bills, it would be around k13, 000 while if it was invested in shares, the value of those shares in one of the companies could be around k23, 000 by now. these are the issues which must be brought to the attention of all malawians so that they can make intelligent and informed decisions at all times whether they choose to keep their money in the home, invest in business, buy shares or deposit in banks. financial inclusion is therefore critical in this regard. on the other hand, if one wishes to access capital to do a business or otherwise, financial inclusion is also critical so that people across the country can access capital for their various needs including running of businesses. our country needs to grow and as it grows, create jobs most needed especially by the youths. as such, our investments decisions and how we use our money is very critical. the economy could do better if all the resources around us are intelligently invested so that the private sector, the engine of growth, should use the resources to develop our country. hence, the issue of access and cost of capital to all malawians across the country are the issues the strategy is addressing. on our part, as a registrar of financial institutions, the reserve bank of malawi is involved in drafting various pieces of legislation and regulations for the smooth running of the financial sector. the bank is also involved in enforcing the various pieces of legislation that have been approved by the national assembly. we will continue to play this role and do it better all the time. as part of this, we take pride in some of the efforts which have been made over the years in this area including modernization

of existing financial sector laws, such as the banking, insurance, securities, microfinance, pension, financial cooperatives, agent banking, credit reference bureau, payment systems, introduction of the national switch which has promoted mobile money banking, which have all improved the architecture of our financial systems and advanced the financial inclusion agenda. the reserve bank continues to play this pivotal role and is currently championing the microfinance processing hub, the automated trading system for the malawi stock exchange, the central securities depository system for securities and equities. these initiatives will benefit the public through increased access to finance and, most importantly, at affordable cost. the bank is also active in consumer protection and financial literacy. the importance of the consumer protection and financial awareness needs no emphasis here. it aims to empower the consumer so that they transact in the financial sector with confidence. in keeping with this, the reserve bank created a unit to be responsible for financial consumer complaints and literacy matters. the reserve bank, in collaboration with its stakeholders, has implemented financial awareness campaigns in order to empower financial services consumers. but, i must mention that the implementation of the financial awareness program requires a lot of financial resources. the reserve bank will therefore put in place a sustainable way of implementing the program. distinguished guests, ladies and gentlemen, let me conclude my remarks by congratulating and commending the ministry of finance, economic planning and development for coming up with the 2016 – 2020 strategy for financial inclusion. this strategy will surely provide a guided direction to achieving and promoting inclusive finance in this country. this being the second strategy, we trust that it has built on the shortfalls of the initial strategy. i thank you all for your kind attention and may god bless our country.