Some 12 Kilometres from the Zambian border and 109 Kilometres from Malawi’s Capital, Lilongwe, lies Mchinji District, whose existence is vital, not just to those living in the western part of Malawi.
In this district, where currency (forex) exchanges between the two countries flows every minute, digital money services have brought financial security and relief, especially for the elderly and persons with disabilities.
With quite a conviction, Jefita Jason, an elderly mechanic at Kapiri Trading Centre, sees digital money as the most convenient way to transact. For someone of his age and physical limitations, the risk of travelling with large sums of cash is far too high.
“To tell the truth, digital money has come to rescue our lives. At my age, I cannot manage to struggle with thugs hence carrying or keeping a lot of cash is life risking. Thieves can easily rob me of the millions and displaying resistance, they can kill me or leave me with injuries,” Jason said.
Blooming of mobile money in Mchinji has become advantageous to many, especially those who find cash handling to be both a logistical and personal risk. Juliet Brandson, a physically challenged woman from Nyoka Village under Traditional Authority Nyoka, says the coming in of digital money has transformed her daily routine.
“I have no problem with digital money and I prefer it because it is safe, convenient and easy. It also gives me the liberty to do almost everything on my phone like buying talk-time, paying various products, receiving money and among others,” Brandson said.
Malawi’s banking sector is small but growing, with several commercial banks operating in the country. However, access to banking services remains limited, especially in rural areas, where informal financial services often dominate due to a lack of physical bank branches and financial literacy. But things are changing.
According to the Reserve Bank of Malawi (RBM)’s 2024 second-quarter national payment systems report, Point of Sale (POS) transactions during the period increased by 6.9%, national switch transactions rose by 7.7%, and mobile banking transactions rose by 11.1%. This growth comes as the central bank pushes for cashless transactions and banks introduce innovative digital banking solutions.
However, mobile money fraud remains a significant concern, with the central bank vowing to work with stakeholders to address this growing issue.
The shift from physical cash to digital money has come on the heels of a digital finance services (DFS) awareness campaign led by Malawi’s Ministry of Finance in partnership with the Reserve Bank of Malawi. The campaign is also yielding desirable results in Nsanje District, where communities are also embracing digital financial services, hoping it will curb cash thefts.
Eliza Ken, a resident of Ndenguma Village in Traditional Authority Malemia, Nsanje, sees digital finance as the key to safeguarding money for her Village Savings Loan (VSL) group.
“Living near the Mozambique border, theft has always been a constant threat. With digital finance, I no longer have to worry about keeping cash at home,” She said.
Still, experts urge caution when introducing digital finance technology to older populations. Khumbo Phiri, a digital finance specialist, says there is a need for a careful, guided approach. “It is not as easy, especially for the elderly as they are usually differently literate. The elderly should pilot using DFS with support of trusted members in the community as uptake and adoption requires a kindergarten approach that needs handholding for some time,” he said.
As mobile money spreads its wings in rural areas, it is clear that for many, this digital revolution is not just a change in how money is handled; it is a transformation in how lives are lived.
Joshua Kunkumbira, the campaign’s team leader in Mchinji, said it is encouraging to note the positive feedback, particularly from the elderly and people with disabilities; groups that were once considered vulnerable but are now embracing the advantages of digital finance.
However, those responsible ought to ensure that they address bottlenecks such as network disruptions, lagging as well as financial illiteracy. For now, though, people can breathe easy as it appears that digital financing has, to a large extent, brought seamless transactions.
Additional reporting by MANA
