The Malawi Communications Regulatory Authority (MACRA) Director General Daudi Suleman has said the digital payments scheme holds immense potential in facilitating cross-border trade for Micro, Small, and Medium sized Enterprises (MSMEs) and advancing digital financial inclusion within the COMESA region.
He was speaking during the Fifth Digital Financial Inclusion Public-Private Dialogue focused on the COMESA Digital Retail Payments Scheme, in Lilongwe.
Suleman said at MACRA, they firmly believe that universal access to ICT services is cornerstone for socio-economic development and inclusive growth hence coming up with various initiatives to bridge the digital divide and provide equal opportunities for all.
According to Suleman, the first initiative MACRA has done is making sure that the population network coverage for broadband technologies, specifically 3G and 4G, has exceeded 80 percent.
“Through our diligent efforts, the population network coverage for broadband technologies, specifically 3G and 4G, has exceeded 80%. This achievement ensures that individuals and businesses, including MSMEs, have access to reliable and high-speed internet connectivity, thereby facilitating their participation in the digital economy and cross-border trade,” said Sulemani.
He added that in parallel with promoting universal access to ICT Service, MACRA is also committed to implementing robust Know Your Customer (KYC) regulations for mobile money services.
“This has been done after recognizing the importance of consumer protection and financial integrity and we have worked closely with industry stakeholders and financial institutions to develop comprehensive guidelines which ensures proper customer identification, fraud prevention, money laundering, financing of terrorism and other illicit activities, while simultaneously promoting digital financial inclusion,” said Suleman
He said by striking this balance, they facilitate secure and seamless digital transactions, thereby empowering MSMEs and individuals engaged in cross-border trade.
Suleman also said MACRA acknowledges the critical need to develop national Data Protection laws to align them with international regulatory frameworks, including the General Data protection Regulation (GDPR).
“we are steadfast in our commitment to safeguarding individuals’ rights to data privacy and protection. Through ongoing efforts, we are enhancing our legislative framework to provide a robust foundation for data protection, enforcement, and accountability,” said Suleman
He added that by aligning with global best practices, they foster trust in digital transactions, enable cross-border data flows, and ensure responsible data practices among businesses, thus promoting the commissioning of the digital retail payments platform within the COMESA region.
“By providing access to this information, we enable consumers such as MSMEs to make informed choices, hold service providers accountable, and contribute to a healthy and competitive telecommunications market. Furthermore, our efforts in monitoring data service pricing have yielded significant results. According to the January 2023 ITU Price Basket Benchmark for SADC countries, Malawi ranked 6th, with a cost of 5 USD per 2GB basket. This price falls below the averages for Africa, Least Developed Countries (LDCs), and Landlocked Developing Countries (LLDCs), showcasing our commitment to affordability and accessibility”.
On his part Chief Executive Officer for The COMESA Business Council Teddy Soobramainen said the payments scheme aims to revolutionize the way people transact and interact with financial services.
He added that by fostering an interoperable, instant and secure digital payment ecosystem across COMESA’s 21 member states.
“We envision a future where individuals and businesses can participate fully in the formal economy, irrespective of their location or financial circumstances” said Soobramainen
Minister of Trade and Industry Simplex Chithyola Banda said the COMESA Digital Retail Payment Scheme stands as a testament to Government’s vision and determination.
He said it holds the key to unlocking the untapped potential of the region, propelling the country towards a future where digital financial services and e-commerce are the norm rather than the exception.
