Government rolls out electronic payment for social cash transfers in Nkhotakota

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Malawi’s Ministry of Gender, Community Development and Social Welfare has rolled out electronic payment (e-payment) to over 7,000 beneficiaries of the social cash transfer program in Nkhotakota.

Nkhotakota ranks fourth among districts implementing digital SCTP payment after Thyolo, Karonga and Blantyre.

Speaking during the rollout of the initiative at Kampala Ground in Nkhotakota, Minister of Gender, Community Development and Social Welfare, Patricia Kaliati, said the initiative would reduce the workload of the district office for make payments.

Minister of Gender, Community Development and Social Welfare, Patricia Kaliati, speaking during the rollout of electronic payment for recipients of social cash transfers

“It’s an efficient way to pay because recipients will get their payments on time, unlike in the past,” she said.

Kaliati said payments will be made through Telecom Network Malawi (TNM) Mpamba in their handsets, which have been handed over to them.

She added that electronic payments would reduce the distance and time recipients spent to receive their payments at the district commissioner’s office.

The National Local Government Finance Committee (NLGFC) and the TNM are implementing partners in the initiative.

A TNM Mpamba agent collects money for a cash transfer recipient in Nkhotakota

Acting Director of Infrastructure and Economic Development of NLGFC, Stanley Chuthi, said that with the support of the World Bank, the committee is implementing the Social Support for Resilient Livelihoods (SSRL) project which supports the social cash transfers, smart climate as well as public works.

“In the area of ​​social cash transfers, we found that it involved intensive manual work, fraud and a lot of administrative expenses, so we wanted to simplify the method of the project through electronic payment”, a- he declared.

TNM Mpamba Director Maleck Kaziputa said the company compliments the government’s efforts to achieve its financial inclusion goals.

“As a local mobile service provider, we are privileged to offer mobile money services to beneficiaries,” he said.

Kaziputa said the initiative will also create many jobs for young people as mobile workers from Mpamba to help beneficiaries.

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