How the Malawi Mobile Money Project Transformed Financial Inclusion in Malawi

In 2012, there were 200,000 mobile wallets in Malawi.

Today, that number has grown to more than 2.5 million. Not only has the number of mobile wallets skyrocketed in Malawi, but a Mobile Money Coordinating Group has been incorporated into the government’s National Payments Council, and there have been inroads to digitizing payment streams within the Malawian government and agricultural value chains.

These substantial advances in digital finance were driven by the Feed the Future Malawi Mobile Money Project. The four-year long project, which started in 2012 and is ending this year, supports the growth of mobile money in Malawi through a series of interventions including pilots and technical assistance to public and private sector stakeholders. The project’s ultimate goal is to boost financial inclusion in Malawi.

To mark the coming end of the project and highlight its achievements, mSTAR invited Chief of Party, Kilyelyani Kanjo, to speak to an audience of digital finance experts and USAID staff in Washington, DC.

“When we started the project,” Kilyelyani explained to the audience, “no one wanted to touch mobile money.” Throughout the first two years, the project faced overwhelming challenges. Kilyelyani had come from the private sector where she was accustomed to seeing faster results. It was hard for her to accept the slow pace of development, but, she said, these challenges forced her and her team “to go back to the drawing board” and re-think their tactics. They realized they had to “give people a reason to believe in mobile money.” To do this, they had to think creatively.

Kilyelyani and her team began to innovate ways to advance mobile money. For example, the team found that mobile network operators (MNOs) did not talk to each other, even though they, and their constituents, would benefit from collaboration and shared resources. To solve this the team supported the Mobile Money Coordinating Group which brought the government, MNOs, and other key stakeholders together in one room. “The MNOs started talking,” Carrie Hasselback, Technical Advisor to the project says, “and now share cell towers.” By sharing cell towers, they’re able to deliver services to a wider number of Malawians.

The team looked for innovative solutions for other challenges as well, including how to support the government in digitizing government to person payments. Through a decentralized payment process, the team was able to digitize “Chief Honorarium” payments in select pilot districts. Not only did the chiefs welcome the innovation, but the team also came to realize that the village chiefs held sway over villagers. As the chiefs started to realize the value of mobile money, villagers followed their example.

Today, the country is transformed. Mobile money is accepted nearly everywhere throughout the capital of Lilongwe, even small kiosks. “I pay everything with mobile money,” Kilyelyani says, “even a sandwich at the local shop.” The project has trained nearly 10,000 people in digital and financial literacy, conducted 9 pilots with various entities to digitize payments, and held 31 road shows and 11 community mobilization meetings. “The number of mobile money transactions per quarter increased in Malawi from 582,000 in 2013 to 23 million today,” Kilyelyani says. The project has successfully reached its primary objectives of testing models for increasing mobile money adoption, increasing financial inclusion, and enhancing product development and service delivery.

With the project ending, Kilyelyani still has plans for mobile money in Malawi. “Interoperability is where we need to get to,” she says. “It just makes sense. Without it, we are operating in silos.” The project has set a stable foundation to achieve interoperability and take mobile money to the next level in Malawi.

Click here to read more about Feed the Future Malawi Mobile Money Project and here to read its results.

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