Malawi: Government to Promote Use of Electronic Transactions
1 July 2013
Malawi has announced a commitment to increasing the use of electronic based money services. Malawi’s primary goals in shifting to e-money are to increase transparency, decrease costs, accelerate economic growth, and address poverty by increasing financial inclusion for all Malawians.
“We have tried many different cash payment modalities in Malawi but these have proved both expensive and subject to risk and fraud,” said Minister of Finance Ken Lipenga, whose country will focus its initial phase of the transition on social welfare and salary payments. “Our aim at this point is to begin by reaching 21,000 people with payments of $3 million.”
The government has joined the Better Than Cash Alliance, 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.
“We commend Malawi on their leadership and commitment to improve the lives of the Malawian people and to further develop the economy of their country,” said Ruth Goodwin-Groen, Managing Director of the Better Than Cash Alliance. “There are many benefits of electronic payments but also challenges and these can best be tackled in partnerships. We welcome Malawi into the Better Than Cash Alliance and look forward to our partnership with them.”
Source: Cellular News