Malawi's government switches to electronic payments
The Government of Malawi announced on July 1st that it is joining the Better Than Cash Alliance in a bid to switch from government cash payments to electronic disbursements.The Government of Malawi announced on July 1st
that it is joining the Better Than Cash Alliance in a bid to switch from government cash payments to electronic disbursements.
The objective is to increase transparency, decrease costs, accelerate economic growth, and address poverty by increasing financial inclusion for all Malawians.
“Our aim at this point is to begin by reaching 21,000 people with payments of $3 million (€2.3 million)", said Minister of Finance Ken Lipenga, quoted in a press release.
The Better Than Cash Alliance is an initiative founded by the Bill & Melinda Gates Foundation, Citi, Ford Foundation, Omidyar Network, USAID, United Nations Capital Development Fund and Visa.
It works with governments, the development community and the private sector to adopt the use of electronic payments and provides resources to those who commit to make the transition.
Finscope demand survey revealed that only 26 percent of the adult population in Malawi is served by a financial institution and 55 per cent are financially excluded.
According to the press release, electronic payments can help improve this situation by creating lasting benefits for people with new opportunities to access formal financial services.