The World Bank has released a report indicating that Malawi is far way behind on electronic payments and debit cards holders in the region at 0.8 percent and 9.4 percent respectively.
According to the 2014 Global Financial Development Report by the World Bank, neighbouring countries such as Mozambique, Zambia and Tanzania have better usage and access to financial institutions.
Mozambique’s electronic payment usage stands at 6.3 percent, Zambia 3.3 percent whereas Zimbambwe is at 6.9 percent.
The report shows that 16.5 percent of Malawians aged at least 15 years hold an account at a formal financial institution.
“Financial inclusion has moved up the global reform agenda and become a topic of great interest for policy makers, regulators, researchers, market practitioners and other stakeholders.
“For the World Bank Group, financial inclusion represents a core topic, given its implications for reducing poverty and boosting shared prosperity,” Jim Yong Kim, World Bank Group President, is quoted as saying in the report.
Inclusive financial system provide individuals and firms with greater access to resources to meet their financial needs such as saving for retirement, investing in education, capitalising on business opportunities and confronting shocks, according to the World Bank Group.Follow and Subscribe Nyasa TV :