The digital finances system has also been supported by digital payments players in the country. Goodall Gondwe, MP, Minister of Finance, Economic Planning and Development, stated that the transition to digital payments is part of the Government’s commitment to achieving social and economic goals within the Malawi Growth and Development Strategy.
Making payments in cash can be expensive and inefficient for governments, companies and international organizations. Cash is also difficult to trace, and extremely vulnerable to theft and loss. Many people living in poverty only use cash, and this is a key barrier to broader financial inclusion because cash makes it costly to provide financial services.
According to UNCDF, in least developed countries such as Malawi mobile penetration is at 30% while access to a bank account is at 14%. Mobile payments can therefore be one way to accelerate this shift.
Every day we send out a free e-mail with the most important headlines of the last 24 hours.
Subscribe now