By Owen Nyaka, Contributor
Save the Children in Malawi says e-payment model is viable and reliable in helping the needy as well as in responding to survivors of natural disasters which occurs yearly every rainy season.
For a very long time, Government and Non-Governmental Organisations have been implementing a number of social cash transfer using analogue system of payment where a cashier was moving with a chunk of money, travelling long distances to deliver hard cash.
The financial hand delivery of money system to the rural needy faced a lot of challenges including travelling long distances to both beneficiaries and cashiers.
This created many risks such as corruption and theft – in most cases the elderly were robbed.
On the other hand, Government through the Reserve Bank of Malawi reiterated the need to safeguard our currency and finding new ways of serving the billions which is spent in printing the new money to replace with the damaged notes.
Save the ChildrenProject Manager, McPherson Kapalamula told journalists in Mponera – Dowa this week that SCI through a consortium comprised of FDH Bank, OXFAM and GOAL with support from European Civil Protection and Humanitarian Aid Operations (ECHO)implemented a pilot project called, “Social Protection and E-payment for inclusive cash response Malawi (Prepare Malawi Project) from September 2018 up to January 2020.
He said the first phase was implemented in Zomba district supporting ProAct project, the second phase was implemented in Traditional Authority Mlauli in Neno district supporting Irish Aid cash transfer which was supporting government humanitarian response.
“E-Payment pilot was implemented in Neno only and we intend to introduce it is Ntcheu district. We procured four-thousand (4000) phones from Airtel and TNM companies and distributed for free to beneficiaries. Each beneficiary was entitled MK7, 400.00 per month using cash blasting system with FDH Bank.
“E-Payment is timely cash distribution within a period, beneficiaries were able to choose when and where to get their cash and even how much to cash out. Funds were well secured and also reduced forced sharing,” says Kapalamula.
He said in situation of floods, a person whose house has washed away, if such person can get assistance through e-payment model, he can be at liberty to buy his basic needs during the time of need than the same person to be given a bag of maize in a period of time.
“Someone who has lost everything by floods cannot think of using the money to buy beer because to every right thinking member of the society, this person crucial needs are food, shelter and clothes,” says Kapalamula.
He said prices of goods at the markets were not increased as vendors could not be able to trace cash out days – cash out did not trigger price hikes as compared to G4S use.
He however pointed that amongst the challenges faced were swapping of sim cards, batteries and phones by beneficiaries during phone charging. FDH, Airtel and TNM agents also need to undergo adequate training on E-payment plat form and cash out modalities so that waiting time is reduced during cash out.
GOAL Malawi Country Director, Phillipa Sacket says during the pilot beneficiaries had added advantage because other people had never had any chance to own a phone.
“We do have loans sometimes in society and when everyone is invited at once to a distribution Centre, everyone knows that you are receiving money and it may easily end up repaying the loan.
“Sometimes even relations when they learn that you have gone to receive cash, when you are back they force you to share with them saying that, ‘this is free money and we need to share.’ But with the current system E-payment model that can be avoided,” says Sacket.
He said beneficiaries were able to properly plan for expenditure. “When you get the message that your account has been credited, you can have some time to think whether to collect it all, or partially depending on the current need.”
Save the Children, Communications Manager Edith Tsilizani said with E-Payment model no beneficiary sign sheets. E-payment focuses in rural areas where there are no banks andPreparedness for response (disaster), wallet is ideal as takes few time to deliver cash to beneficiaries as compared to card and Reconciliation through transaction statement and can be designed to suit customer desire.
Every journalist that attended orientation training had an experience of E- payment model using FDH withdraws without ATM card or accounts.
