Despite an
increase in subscribers to mobile money services in Malawi, the country has
recorded low activity in this space in the first quarter of 2019, according to
the latest report by the Reserve Bank of Malawi.
The
National Payment System 2019 First Quarter report stated that only 39.7% of the
6.5 million mobile money subscribers used the service, compared to the 41.1%
recorded during the last quarter of 2018.
The report
did state: “This outcome is attributed to seasonal factors normally
experienced in the first quarter of a year and the trend is expected to reverse
during the second quarter due to the onset of agricultural produce trading
season.”
It added
that the number of registered mobile money agents rose by 10.1% to a total of
43, 406 in March 2019, but said there was a drop in the number of active agents
with only 59.3% recorded as being active during the quarter under review.
The report
suggested the drop is because some agents – particularly those in rural areas –
divert their attention away from the market to focus on agriculture as crop
planting season approaches.
It added
that 71.4% of mobile money agents are located in urban and semi-urban areas
with only 25.9% in rural areas. This reflects the ongoing challenge faced by
rural communities in being able to access financial products and services.
Charles
Banda, vice president of the Consumer Association of Malawi (CAMA), said the
low activity rate among mobile money consumers could be the result of low
awareness of mobile phone products and services, as well as sparse availability
of payment systems – especially in rural areas.
“The
Reserve Bank of Malawi and mobile network operators still have a lot to do in
terms of designing and implementing measures aimed at increasing deployment and
usage of electronic payment products and services if the real financial
inclusion is to be achieved in the country,” Banda said.
