SPEECH BY PROF M A P CHIKAONDA, CHAIRMAN, NATIONAL BANK OF MALAWI AT THE OFFICIAL OPENING OF MZUZU SERVICE CENTRE

• Your Excellency,  Ngwazi Dr Bingu wa Mutharika, President of the Republic of Malawi
• The Right Honourable Joyce Banda, Vice President of the Republic of Malawi
• The Minister of Finance, Hon Ken Kandodo MP
• The Governor of the Reserve Bank of Malawi, Dr Perks Ligoya
• All Cabinet Ministers and Members of Parliament present here
• The Chief Secretary in the office of The President and Cabinet, Mr Bright Msaka
• The Chief Executive of National Bank, George Partridge
• The Chief Executive, Mzuzu City Assembly, Mr Samson Chirwa
• Inkosi ya Makosi Chief Mbelwa the 4th and all Chiefs present here
• All senior Party Officials from the ruling Democratic Progressive Party (DPP) and officials of other parties present here

On behalf of the Board of Directors, Management and staff of National Bank of Malawi let me join the master of ceremonies in welcoming you all to this auspicious occasion.

In particular, I would like to thank your Excellency, for agreeing to come and preside over the official opening of the Bank’s “new” Mzuzu Service Centre. This is in spite of your very busy schedule as Head of State. This is an honour for all members of staff of the bank and the people of Mzuzu. We do not take this for granted, Sir.

Let me take this unique opportunity to congratulate Your Excellency on being elected Chairman of the African Union. It is a great honour to us all Malawians, particularly to us in the business community because of the exposure to the world that this high profile office brings. I wish you well in this added new challenging responsibility.

I would also like to thank all our distinguished guests gathered here and our very highly valued customers who give us business.  It is out of your custom that National Bank has turned out to be an important part of the corporate and economic landscape of this country. We indeed pride ourselves to be a good employer, a great friend of the community, a compliant taxpayer and more importantly, a real investor into this economy, exemplified in part by the infrastructure that your Excellency inspected earlier on today.

Today, Your Excellency, ladies and gentlemen, we are witnessing the proof of our bank’s commitment towards providing the most modern commercial banking services in Malawi in general, and Mzuzu in particular.  National Bank has always taken a cue from your Excellency’s guidance on the importance of local businesses benchmarking against world class standards if we are to compete on an equal footing with best players on the global scene.

As the number one bank in Malawi, also popularly referred to as the “Bank of The Nation”, we have assumed that leadership role. We would like to be an agent of change as regards to shaping the landscape of the financial industry in this country. To this end, we have now refurbished almost all our service centres to the highest internationally accepted standards. We have constructed 2 brand new branches in the Northern Region. The other recently opened one is in Karonga which has received very favourable reviews and has changed the way Karonga looks.  The Karonga Service Centre was opened in July 2008.

We are at the moment completing a refurbishment programme of all our points of representation countrywide. In addition, the Bank is putting up a magnificent MK4.0 Billion multi-storey building in Blantyre which will house its head office functions. The facility will be available for occupation by the end of the year. This Sir, is consistent with your vision on high quality city building standards if we want to grow and portray a serious image to doing business.

The bank is also this year in the process of overhauling its main banking information processing system at a cost of MK1.0 Billion, to match the best banking system being offered in the developed financial centres elsewhere. This should enable efficient processing of transactions and development of innovative products relevant to the needs of a fast growing nation such as ours.

The bank will continue ploughing its profits back into the economy by making appropriate investments to uplift the financial landscape of this country. After all, this is our country, this is a Malawian bank, being run by Malawians and we are here to stay. Unlike fair-weather friends, National Bank of Malawi has been here since 1898 and we intend to be around in another 112 years to come.

Your Excellency Sir, as you are aware, banking business is about trust, integrity and confidence. The strategy that the Bank’s Board has adopted is aimed at consolidating this confidence amongst our clients, potential clients and investors. One of the major attraction factors of foreign investment, and indeed any worthwhile investment, is a robust, stable and reliable financial system that exudes confidence. We believe we have just stamped our authority in this particular area, and it speaks volumes on what National Bank really stands for.

It is important to mention that the Board and shareholders have been confident in approving all these major investment decisions because of the very conducive economic environment that is now prevalent in this country. This is because of the commendable stewardship of the economy under your Excellency’s leadership. We have had unprecedented GDP growth rates over the past few years, single digit inflation rates, and relatively low interest rates and a stable currency.

The majority of the population has now got other things to strive for other than getting worried about where their next meal will come from. Food security has been good for business.

Having said all that your Excellency, we at National Bank, are painfully aware that about 80% of the country’s population does not have access to financial services, especially for our people in the rural areas. It has often been said that a country can only develop as far as its financial sector. We do realize that having no access to financial services is a major impediment to economic development.

The Bank is at the moment working together with the regulator, the Reserve Bank, and other stakeholders on how best to achieve acceptable levels of financial inclusion and deepening within the confines of our commercial banking license, as part of the development of a comprehensive Financial Sector Development Reform Strategy which is currently work in progress in the Ministry of Finance and at the Reserve Bank.

The bank is making efforts to have a country-wide physical representation where circumstances can allow. We also are in the forefront of developing products which will enable easy access of financial services without necessarily having a brick and mortar presence. To this end, we have recently rolled out point of sale and electronic card infrastructures, and, introduced products which utilize mobile phone technologies, helping to revolutionalise the country’s payment system in line with the National Payments Vision which was signed between the Reserve Bank and the Bankers Association.

One such product which uses mobile phone technology is the “Mlimi” account. Subscription to this account enables farmers to automatically receive an sms text message when their proceeds from the tobacco auction floors have been credited to their account. Previously they had to physically travel several times all the way to the bank just to check balances and whether money has landed in their account. The account features are open to all account holders as well, as corporates as long as one has a cell phone.

Being the “Bank of the Nation”, it is only natural that we continue to receive our fair share of criticisms on provision of lending, especially start-up capital, to budding entrepreneurs. Your Excellency, we share this concern. This can be difficult and sometimes impossible to underwrite under the confines of a traditional commercial banking license and the Banking Act. We are however exploring with the regulator and other stakeholders how the Bank can take up a leading role in the establishment of specialized institutions and vehicles such as venture capital funds and development funds which are fit for this particular purpose.

Sir, coming back to the reason why we are here today, the magnificent building you saw this morning has been built at a total cost of MK700 Million and it has taken about 12 months to complete. This is the largest bank branch in Malawi and I am happy your Excellency to report that National Bank has given the people of Mzuzu and the Northern Region the best banking facility in the country. It has also changed the face and character of Mzuzu City. We provide employment to 50 people at this Service Centre out of an establishment of 850 countrywide. The centre serves 25,000 customers.

 I am sure the Mzuzu City Assembly is also salivating to collect their city rates.

We started offering banking services at the new premises on 16th January this year and our customers are happy with the ambience and the ample space it provides. We have ample parking space which was a very big problem at our previous premises. The construction is compliant with requirements for the physically challenged employees and customers. We have a special serving area for the elderly and the disabled who are whisked away to that facility to be served in comfort when they enter the premises.

In addition, Your Excellency, National Bank operates on behalf of the Reserve Bank a Sub Chest which is accommodated in the same premises. This shows the trust and confidence that the Reserve Bank has in this bank’s ability to execute this task of national importance, until such a time that the Reserve Bank facilities are ready here in the North. Of course it is at a fee.

I will be failing in my duty if I do not pay special thanks to all companies and individuals who individually and as a team played a vital role in this important project.  Let me specifically recognize the following:

• Mr Ben Chidyaonga -  of ABC Design Architects
• Mr Simeon Banda - Quantity Surveyor of SFS Property Consultants
• Mr Manjano Chirwa - Civil Engineer of WTM Chirwa and Associates
• Mr J Da Costa - of Terrastone Ltd
• Mr Nguluwe – The Site Manager from Terrastone Ltd
• Mr P Amani – of WIPA Associates, the Electrical Contractor
• Mr G Chirombe  -  of Aluminum Systems
• Mr Kelvin Harry – Incredible Interiors
• Mr K Chisenga – of Link Building

10. Mr Chirapondwa  -  of Computech

• Mr Raffique Maru – from Portfolio –Signage and,
• Mrs J. Trindade for  all the landscaping

Your Excellency, our operations here in Mzuzu started way back in 1966 through Barclays Bank DCO(Dominion Colonial Overseas).  There are some customers here who opened their accounts in those early years.  We only find it befitting, at this occasion, to show our gratitude to such loyal customers.  At the end of my speech I will humbly request you Sir to honour these loyal customers of the bank and the Service Centre through a National Bank  Appreciation Award and MK50,000.00 cash to each one of them.

Your Excellency, distinguished ladies and gentlemen, as we celebrate the opening of new Mzuzu Service Centre, we would like to share this celebration with those who through personal sacrifice and dedication, their organizations are looking after orphaned children here in Mzuzu. We humbly request your Excellency to make donations, on behalf of National Bank. 

It is also my privilege and honour your Excellency to announce that National Bank of Malawi will from this year on wards be recognizing and presenting Best Student Awards to students from Mzuzu University who will have excelled in their various disciplines.  This, your Excellency is a deliberate action to encourage the young men and women of the University to work hard in their studies.

To all our customers, we extend our sincere gratitude for associating with the bank and we are looking forward to a continued relationship for our mutual benefit.

Your Excellency, let me conclude by thanking you once again, for your kindness to come and celebrate this occasion with us.  On behalf of National Bank of Malawi I wish you good health as you govern this beautiful country of ours.

God Bless you all.