Two of the major financial institutions in Malawi; First Discount House (FDH) and New Building Society (NBS) banks are planning to axe about 400 employees by April this year.
As per reports from the two banks the never ticking economy has forced the banks to arrive at the decision.
The Banks also blame the mushrooming of village banks as a set back to the banking sector since people are opting to borrow money from village banks due to low interest rates than major commercials banks because of high interest rates.
NBS will sack 300 workers by April while FDH will let go about 100 by March. Business mogul, Nick Yiannakis has blamed government for the mess rocking the banking sector.
“The loss of jobs is terrible and alarming. DPP’s policies have failed to help matters instead they have just contributed to the suffering of Malawians because nothing is working.
“Since Mutharika ascended to power, how many jobs has his government created? How many companies has his government contributed to their closure?” he asked.
“Malawi Government must hold meetings with private sector and hear what needs to be said. Private section has lost trust and confidence in doing business in Malawi. Action is greater than cheap words. Look at Malawi without private sector! Total disaster. Interest rates must be reduced to at least 14%, taxation reduced drastically,” said Yiannakis.
He added that Malawians especially the youth will indulge into immoral behaviours because of their idleness.
“I think it is better for the President and his team to resign than to kill million with poverty.
“Lack of jobs will make Malawians very poor because as a country we have failed to give them jobs as well as creating a condusive environment for them to business. Corruption or development is the question one must ask themselves,” said Yiannakis.