Economist hails Former RBM Governor Mafuta Mwale for the 2025 profit currently at K618bn

Economic and financial Scholar, Dr Ben Dzolowere has praised former Reserve Bank Governor Dr Mafuta Mwale for prudent financial management which has seen the Bank migrating from a loss making Bank to a Profit making one.

Nation Newspaper recently reported that RBM profit almost doubled to K618 billion in 2025 from K347 billion the year before while the central bank’s foreign exchange revaluation losses remained moderate due to exchange rate stability, financial results show.

“We are asking the current leadership at the Bank to sustain the gains,” he said. “Dr Mwale came in at a tough time. He stabilized the kwacha, tightened monetary policy, and cleaned up RBM’s operations. Without those reforms, we would not be talking about K618 billion profit today.”

Dr Mwale is credited with several key reforms during his tenure:

1. Financial turnaround: Reversed a K539 billion loss in 2023 into consecutive profits.

2. Stability drive: Focused on exchange rate stability which cut forex revaluation losses.

3. Governance: Strengthened transparency and risk management at the central bank.

4. Confidence building: Restored trust with the banking sector and external partners.

Economic analysts have described the profitability as a complicated matter, saying that it should only make a profit for self-sustainability as it does not exist to make profit. However, they agree that the discipline introduced under Dr Mwale has helped.

According to published financial results, the central bank’s profit recorded at K618 billion in 2025, jumped from K347 billion in 2024 from a loss of K539 billion in 2023.

The turnaround at RBM is also sparking debate about what to do with the surplus. Some economists argue the K618 billion should be used to strengthen reserves and cushion future shocks, rather than being treated as a windfall for government transfers.

Meanwhile, the commercial banking sector posted a combined K724.5 billion net profit in 2025, nearly double the K384.46 billion from 2024. FDH Bank, Standard Bank, NBS Bank plc, National Bank of Malawi plc and First Capital Bank all saw strong growth.

Looking ahead, analysts say the challenge will be translating these profits into cheaper credit. With balance sheets stable through 2025, both RBM and commercial banks will need to balance
profitability with support to the private sector for growth.