Push for cashless economy risks rural exclusion

Malawi’s push towards a cashless economy could leave millions of rural people struggling to access financial services unless major gaps in digital infrastructure are addressed.

Chairperson of the Joint Parliamentary Committee on Finance and Legal Affairs, Sosten Gwengwe, has welcomed the planned phase-out of cheque payments but warned that poor mobile network coverage and weak digital systems could exclude many communities from the transition.

Gwengwe said moving to digital payments is a positive step for the country’s financial sector, but stressed that the change must go hand in hand with investments in reliable and affordable digital services for all Malawians.

He said moving to electronic payments should not only focus on technology but also on financial inclusion, especially for people in rural areas who depend on mobile and banking services.

“You do not really want to exclude other Malawians from digital, also from payment systems. As we move towards paperless transactions, our banks need to invest enough in their digital infrastructure,” said Gwengwe.

He said network challenges remain a major concern, arguing that someone in a village should be able to send or receive money without being blocked by poor connectivity.

Gwengwe also challenged banks to improve their digital platforms, saying customers continue to experience problems such as delayed transactions and difficulties reversing failed payments.

He cited his own experience where he received multiple debit notifications from a bank within minutes, raising concerns about the reliability of some digital systems.

The lawmaker said the Minister of Information and financial institutions must work together to improve network coverage and digital infrastructure so that Malawi’s shift from cheques benefits all citizens, including those in remote areas.