As has been done in Rwanda and Zambia, Malawi’s government wants to increase digital transactions to minimise physical contact with cash.
Mutharika said the treasury must enforce the directive during the period of partial lockdown.
He also ordered banks and micro-financial institutions to observe a three-month moratorium in interest and principle repayments for all loans contracted by micro businesses and SMEs.
These measures are aimed at cushioning the impact of COVID-19
Malawi’s president Peter Mutharika
However, CEO of the Institute of Bank in Malawi (IOB), has expressed some reservation and was quoted by the local Nation newspaper saying: “There are a number of factors to be considered before reducing fees and charges on electronic money transactions.”
Chancellor Kaferapanjira, CEO for Malawi Confederation of Chambers of Commerce and Industry has told the media that “the chamber expects banks to implement the measures smoothly for the benefit of the sector.”
Malawi’s mobile money market is growing steadily as the government pushes for financial inclusion.
