African Development Fund inks $14.2m grant to drive financial digitalisation

The African Development Fund (ADF) and the Malawian government have signed a grant agreement to make Malawi’s digital payment system more efficient and transparent.

The grant – totalling $14.2m – is part of the digitalisation, financial inclusion and competitiveness project, which was approved in December 2021. The funding will be sourced from the ADF.

According to FinTech Finance, the project is anticipated to boost Malawi’s domestic financial inclusion rate from 58% to 2019 to at least 65% in 2025. The GDP contribution of the ICT sector in Malawi is expected to climb from 5.7% to 7% over the same period.

Malawi’s minister of finance and economic affairs Sosten Alfred Gwengwe said, “The DFIC project is aligned with the Malawi Digital Economy Strategy and the Third National Strategy for Financial Inclusion; both contribute to achieving Malawi’s long-term objective of inclusive wealth creation supported by an inclusive financial system and digital economy.”

ADF country manager for Malawi Macmillan Anyanwu added that the signing of the DFIC project grant agreement today was a key step towards promoting the use of electronic transactions in Malawi to boost access and use of affordable financial services, particularly amongst women, youth and rural dwellers.

He added, “The project will also enable more efficient business transactions, offering small businesses the opportunity to gain access to new markets.”

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