The Malawian government and the African Development Fund (ADF) have signed a grant agreement to foster Malawi’s digital payment system.
The grant agreement of $14.2 million which is to undertake infrastructure upgrades and create a more efficient and transparent digital payment system, hence promote digitalization and financial inclusion will be funded from the ADF.
In a press release by the African Development Bank Group (AfDB), Malawi’s Minister of Finance and Economic Affairs, Sosten Alfred Gwengwe stated that, “The Digitalization, Financial Inclusion and Competitiveness (DFIC) project 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”.
Macmillan Anyanwu, The African Development Bank’s Country Manager for Malawi, said the signing of the DFIC project grant agreement was an important step towards promoting the use of electronic transactions in Malawi to increase access and use of affordable financial services, particularly, amongst women, youth, and rural dwellers.
“The project will also enable more efficient business transactions, offering small businesses the opportunity to gain access to new markets,” he added.
The project is anticipated to boost Malawi’s domestic financial inclusion rate from 58% to 2019 to at least 65% in 2025. The GDP contribution of the ICT sector in Malawi is expected to climb from 5.7% to 7% over the same period.