|Approval Date||08 Dec 2021|
|Signature Date||04 Feb 2022|
|Planned Completion Date||31 Mar 2026|
|Sovereign / Non-Sovereign||Sovereign|
|DAC Sector Code||15124|
The Support for Digitalization, Financial Inclusion and Competitiveness (DFIC) project is an institutional support project financed from ADF-15 resources in the form of a grant. This is an ADF-15 grant of UA 10.00 million. The period of execution runs from January 2022 to December 2024. The project main goal is to improve access to digital financial services and strengthen the competitiveness of the Malawian economy through digitalization. It also supports in strengthening capacities in light of lessons learnt from COVID-19 pandemic when digitalisation has become more critical in-service delivery. The DFIC project is structured into three complementary components: (i) Support for the digitalization of financial services; (ii) Improving the business environment for enhanced competitiveness and trade; and (iii) Project Management.
The development objective is to promote digital financial inclusion and develop an enabling environment for digital trade by building a robust and harmonized e-payments policy so as to enhance economic competitiveness and social resilience. The specific objectives are to (a) develop a digital payment ecosystem that will improve financial inclusion, accountability, efficiency and transparency of the payments system and reduce costs associated with a cash-based system.; (b) strengthen mechanisms to support the competitiveness of the private sector and improve access to national and export markets; (c) improve access to financial services among the general population with a particular focus on SMEs, women, youth and rural populations.
DFIC project is covering all the regions of Malawi. The project main direct beneficiaries include both the public sector and private sector, notably the Ministry of Trade, Reserve Bank of Malawi and Malawi National Switch. The indirect beneficiaries include domestic non-financial and financial institutions benefiting from a conducive environment for business development, private sector stakeholders including firms active in agriculture, mining and tourism sectors, MSMEs, farmers, women-led activities as well as the whole domestic population who will have access to low-cost digital financial services. With regard to awareness-raising and financial education actions, the DFIC will have an inclusive targeting approach for beneficiaries based on gender and the level of poverty and education. In addition, special attention will be required depending on the level of location (rural area vs. urban area).
African Development Fund
RESERVE BANK OF MALAWI
|Last Update||02 Oct 2022|
|Name||AKA Kouassi Bruno|