In a significant move to expand pension coverage in Malawi, NICO Pensions has encouraged members of Malawi Union for Informal Sector (MUFIS) for a voluntary personal pension product which was just introduced at NICO. This initiative is aimed at workers in the informal economy, a group that has historically been excluded from formal retirement savings schemes.
The initiative was highlighted during a training workshop organized by MUFIS targeting members from different markets across Blantyre, where NICO Pensions Business Development Officer Tamara Banda engaged with union members to explain the new product and the importance of cultivating a savings culture.
A Pension for Everyone
Speaking during the event, Banda explained that the voluntary personal pension is designed to be accessible to all Malawians, whether formally employed or not.
“Most people in the informal sector don’t have a pension, but it’s not guaranteed that they’ll continue working even beyond their old age, So we have this product at NICO which is catered to such people who can always contribute and do their own pension independently.” Banda said.
The product, she noted, is remarkably flexible. While contributions of more than K10,000 are encouraged, there is no minimum amount required.
“You can always start with any amount. Some people start with even 500 Kwacha, that’s just to show that what we really want is to have that savings culture. We’re not just looking for your money, but we want you as individuals to have that saving culture where you save for yourself.” Banda said
Responding to Economic Realities
Banda acknowledged the challenging economic environment Malawi currently faces, describing the country as being in a recession with an unstable economy. However, she emphasized that this makes the case for saving even stronger.
“We all know that Malawi currently we’re in a recession, we’re in an unstable economy, and we can’t guarantee that things will get better in the future, so it’s always good that we have some savings, as we all don’t know the future.” she said.
She stressed the importance of financial independence, particularly in old age.
“You should also have that responsibility to be independent, even in your old age. Be independent, be someone who’s reliable, financially especially,” Banda added.
A Call for Self-Reliance
MUFIS President Ken Williams Mhango echoed these sentiments, framing the training as part of a broader shift in how the union approaches member support.
Mhango said.
“Today is the day that we want to pass different knowledge to our members. Looking at the situation, the global situation, I quite agree with you. We have been at the receiving end for quite a long, almost maybe six decades,”
“Now we have to start rethinking how we can sustain ourselves, not safe thinking but thinking for the country. Just like Malawi Union for Informal Sector, as president I have to start thinking for the members out there because when we say Malawi Union for Informal Sector, it’s not me, it is members out there. That’s why we decided to call for this training to try and train our members how they can maybe start small savings with NICO Malawi.”
From Receiving to Building
Mhango was candid about the limitations of past approaches, noting that reliance on external resources has not always yielded the desired results.
“In the past we used to get resources, take it to our members, and the resources, some use it nicely, some misuse it,” he said. “So here now we are saying this time, the time of receiving is over. It’s a time of rethinking, building their own capacity on the ground, building their own capacity at the branch level.”
He emphasized that financial strength at the individual and branch level would ultimately strengthen the union as a whole.
Gloria Matewere, one of the participants from Luwanda Market in Machinjiri said that they have been encouraged in terms of servings.
“All these years, We’ve been viewing NICO savings as only for formally employed people. but this workshop opened our eyes that there is also a new product that is being introduced at NICO which is also covering us in the informal economy, for this I am really appreciating”, said Matewere.
A Timely Intervention
MUFIS brought this training at a critical time when many Malawians in the informal sector face an uncertain financial future without the safety net of a formal pension. With the voluntary personal pension product, NICO Pensions and MUFIS hope to change that narrative with one small contribution at a time.