By Duncan Mlanjira
Malawi has enormous potential to grow its digital economy as more people are shifting their habits towards Internet and consumption of digital financial service, TNM Chief Executive Officer Michiel Buitelaar told students of Catholic University where he delivered a public lecture.
Entitled ‘Marketing = Science’, the lecture outlined the fundamentals of digital marketing in the context of Malawi’s economic environment.
“While Internet usage in this country is still relatively low, most Malawians are not different as they will still rely on the use the internet.
The digital financial service campaign in Mangochi
“We think that by spreading the word, advocating and engaging with people on good things about the Internet we could make it big, attractive and profitable industry just as other countries are doing,” Buitelaar said.
He acknowledged factors that are hindering effective implementation of a digital ecosystem in the country’s economy such as access to a decent but expensive devises like a 4G smartphone to access reliable Internet services.
“But the good news is they are becoming less expensive [for more people to afford to buy].
“Another factor is digital literacy, which has a viral effect to it in a sense that once there are a couple of people who are enthusiastic of digital lifestyle, they can influence others [to its good use],” he said.
Various financial services providers including
TNM were part of exhibitions
The public lecture was organized for TNM Plc to harness relations with the Catholic University and showcase leadership as an integrated mobile telco and ICT firm.
“As a truly Malawian company, we would like to be involved in the society by getting closer to key institutions like the Catholic University.
“We think that we can learn from the university and also give something back to the university,” Buitelaar said.
Linda Sambo, a 4th-year marketing student said the presentation has imparted them with diverse knowledge on the digital capabilities and opportunities.
“He talked quite a lot of positives but what captured my attention is the fact that marketing and analytics are becoming more merged in terms of understanding the consumer behavior.
The march
“It has motivated me to learn more about analytics to better my career in marketing,” Sambo said.
She applauded TNM for organizing the lecture, saying the partnership between the two institutions will help the university to create a better academic marketing program.
As a catalyst for growing internet, TNM will conduct series of lectures in universities in its quest to enhance technology in the country.
TNM has commissioned a new site at the campus to improve mobile connectivity around the institution.
RBM’s Mathanga appreciating a service
This quest by TNM is also in line with the Reserve Bank of Malawi’s drive to accelerate the shift from paper-based payments instruments, such as cash and cheques to electronic based services.
Earlier this month, the RBM organised a conference at Sun ‘n’ Sand in Mangochi that attracted digital financial service stakeholders to appraise them that the transaction cost of using cash, whether by individuals or business entities, is far much higher than that associated with digital financial services.
After holding a conference, RBM took the cashless awareness campaign march through the streets of Mangochi from M’mbaluku that was spiced by the Malawi Defence Force (MDF) brass band.
The march, that was joined by RBM’ Executive Director Henry Mathanga, ended at St. Augustine 2 Primary School where various banks and non-bank mobile money service providers erected pavilions to market their services.
The financial services providers included Standards Bank, NBS Bank, Nedbank, National Bank, Ecobank, FINCA, FDH Bank, First Capital as well as mobile money companies; TNM and Airtel.
During the conference, RBM Governor Dalitso Kabambe highlighted that Malawi’s financial sector is certainly leading the way in bridging the digital divide as it has a world-class national payments system called the Malawi Interbank Transfers and Settlement system (MITASS), which has linked all commercial banks through which all transactions; high or low value, are processed in real time and designated time intervals.
Besides MITASS, the RBM also implemented the National Switch (Natswitch) through which all ATMs and point of sale (POS) devices as well as the two non-bank mobile money solutions have been interlinked.
He also said Malawi has seen the number of bank accounts more than doubling within one year from 1.3 million in January 2018 to 2.6 million as at end of December.
“The number of subscribers on the non-bank mobile money platforms has also increased from 3.6 million in 2016 to 7.0 million as at end of June 2019.
“Likewise, the volume of non-bank mobile money transactions has also risen exponentially from 87.3 billion in 2016 to 122.3 million as at end June 2019 with a corresponding in crease in transaction value from K303.8 billion in 2016 to K710.1 billion as at end June 2019.
“Overall, transactions processed in all digital financial platforms increased by 104.8 percent in volume from 105.4 million in 2016 to 215.9 million in 2018 while the corresponding value increased by 173.5 percent from K1.24 trillion in 2016 to K3.4 trillion in 2018.”
Kabambe went on to say that the Malawi Revenue Authority (MRA) has also been linked to MITASS through which they view the inflow of transactions from commercial banks into their accounts maintained at the RBM.
“We have also linked the Accountant General’s office and as a result salaries for civil servants are now processed digitally.”