Reserve Bank of Malawi (RBM) Deputy Governor Dr. Kisu Simwaka has challenged mobile network operators to address persistent connectivity issues and high mobile money transfer fees, which are undermining the country's digital payment systems.
Speaking during the half-day National Payment Systems (NPS) Vision and Strategy Launch in Lilongwe, Dr. Simwaka highlighted a range of structural barriers slowing progress toward full digital inclusion, currently estimated at 88 percent. He cited poor network connectivity, limited and unreliable mobile data coverage, and inconsistent electricity supply needed to power devices and infrastructure as key concerns.
He further pointed to low smartphone ownership, continued reliance on basic phones, and limited digital and financial literacy among users as significant obstacles. High transaction fees and affordability barriers, he noted, are also discouraging widespread adoption of digital financial services.
Dr. Simwaka added that the shortage of cash-in and cash-out agents, persistent agent liquidity challenges, and growing concerns around trust, security, and fraud are further weakening confidence in digital systems. Weak supporting infrastructure, such as poor road networks affecting agent reach, identity and Know Your Customer (KYC) barriers to account opening, and the lack of interoperable systems leading to fragmented services, were also cited as critical issues.
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He has since called on telecommunications companies to take decisive action in addressing these challenges.
Responding to the concerns, Airtel Money Managing Director Thokozani Kamkondo Soko acknowledged the issues but emphasized the significant role mobile money continues to play in advancing digital payments in Malawi.
She noted that 88 percent of Malawians are now digitally financially included, largely driven by mobile money platforms.
Soko highlighted Airtel Money's contribution to employment and skills development, revealing that the company currently operates with over 400,000 agents nationwide.
"So it is really creating jobs. The use of mobile handsets has also helped bring rural markets into the digital financial space. We now have over 8 million mobile money users across the country, which I would say is a major achievement for Malawi as a nation," she said.
On the issue of transaction costs, Soko stressed the need for collaboration among stakeholders.
"We need to work together with the Central Bank and other players to find ways of reducing infrastructure costs so that the charges customers incur for digital transactions are also lowered," she said.
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Association of Digital Financial Services President William Kaunda commended the RBM for providing clear and structured guidelines on the National Payment System.
He said aligning with global financial systems will simplify international payments, improve currency routing, and strengthen correspondent banking integration.
Kaunda added that the reforms are expected to enhance transaction efficiency and security across the system.
He further noted that migrating to ISO 20022 standards will improve system reliability, reduce outages, and significantly strengthen security in digital financial transactions.
