Economics Association of Malawi (ECAMA) President, Dr Bertha Bangara-Chikadza, has cautioned that rural communities could be left behind as Malawi shifts from physical cheques to electronic payment systems.
Chikadza says rural areas may require more time to adopt electronic payment systems due to limited digital literacy and access to reliable digital infrastructure.
“Rural integration needs to plan for slower adoption, rather than uniform uptake,” said Chikadza.
She said agent banking and other alternatives could help rural communities continue accessing financial services during the transition.
Chikadza’s remarks come after Parliament passed the Bills of Exchange (Amendment) Bill on Thursday as part of reforms aimed at modernising Malawi’s payment system and facilitating a shift towards electronic payments.
Finance Minister, Joseph Mwanamvekha, said the reforms are aimed at promoting modern digital means of payment, with regulations to be developed to safeguard users against abuse and cybercrime.
According to Chikadza, the reform could make transactions faster, reduce manual operational costs and risks associated with paper based instruments such as forgery.
She, however, cautioned that power outages, unstable internet connectivity and electronic fraud could undermine the transition.
“The digital era has also posed a threat of electronic fraud and scams, which banks must navigate by putting cybersecurity measures in place,” she said.
Chikadza also called for adequate sensitisation of businesses and customers to ensure they understand and are prepared for the changes.
She added that system disruptions could affect transactions, particularly as physical cheques become less available as an alternative.