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Malawi secures millions for financial digitalisation

from MAVHUTO BANDA in Lilongwe, Malawi
LILONGWE – MALAWI’S efforts to undertake infrastructure upgrades and create a more efficient and transparent digital payment system has received a boost to the tune of U$14,2 million.

The African Development Fund (ADF) and the government of Malawi have signed the grant agreement.

It will fund the Digitalization, Financial Inclusion and Competitiveness (DFIC) project, approved last December.

DFIC is aligned with the Malawi Digital Economy Strategy (2021-2026) and the Third National Strategy for Financial Inclusion (2022-2026).

“Both contribute to achieving Malawi’s long-term objective of inclusive wealth creation supported by an inclusive financial system and digital economy,” explained Sosten Alfred Gwengwe, the Minister of Finance and Economic Affairs.

The project will widen financial inclusion in the country, in particular to women, youth and rural dwellers.

It will also allow for efficient business transactions, offering small businesses the opportunity to gain access to new national and international markets.

Macmillan Anyanwu, the African Development Bank’s Country Manager for Malawi, concurred.

The project is expected to boost Malawi’s domestic financial inclusion rate from 58 percent in 2019 to at least 65 percent in 2025.

GDP contribution of the ICT sector is expected to rise from 5,7 percent to 7 percent over the same period.

Export volumes are expected rise to 35 percent of GDP from 31 percent.

This is in line with the targets of the national export strategy.

Currently, the total commitment in the African Development Bank’s active portfolio in Malawi stands at about $327 million.

– CAJ News

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