Africa-Press – Malawi. Reserve Bank of Malawi (RBM) Governor Macdonald Mafuta Mwale has identified informality as the biggest obstacle to the country’s economic development, calling for urgent digitisation to formalise the economy.
Speaking at the opening of the 2025 International ICT Expo in Lilongwe, Mwale said no country could develop with the level of informality currently existing in Malawi’s economy.
He emphasised that formalisation through digitisation was key to connecting with the digital economy, citing potential tax revenue increases of up to 40 percent through digitisation.
“The number one problem that I want to solve in this economy is informality. We are doing things informally. No country can go anywhere with the extent of informality in this economy. We can manage to reduce informality in Malawi and grow as an economy if we formalise and digitise.
“The transformative impact of digital financial services was witnessed in 2024 with transaction volumes increasing by 38.8 percent to 1.97 billion transactions with a total value of K187 trillion. These figures point to a maturing digital financial ecosystem that is more efficient, accessible, interoperable, safe and trusted,” Mwale said.
Digital financial services recorded 1.92 billion transactions, up from 1.3 billion in 2023, with transaction values increasing by 73.7 percent.
The governor noted that mobile money subscriptions have risen by 27.6 percent to reach 16.2 million users, enabling the financial inclusion rate to reach 83.3 percent of the population.
He credited the Malawi Interbank Transfer and Settlement System (MITAS) for processing K128 trillion in value, representing 68.6 percent of total transactions.
However, Mwale acknowledged that challenges remained, particularly the digital divide caused by unequal access to affordable internet, devices and digital skills.
Ictam President Clarence Gama said the expo serves as one of the most significant platforms where industry, government, development partners, academia and the public converge to shape a future-ready digital Malawi.
“As we gather here, we must acknowledge the tough economic challenges that Malawi is currently facing. The ICT Association of Malawi is dedicated to playing a pivotal role in turning around our economy by working hand-in-hand with the government and the private sector. Together, we can leverage technology to create new opportunities, enhance productivity and drive economic recovery,” Gama said.
The three-day event, which ends today, is themed ‘Accelerating Malawi’s Digital Economy: Innovation, Inclusion and Sustainable Growth’, directly aligned with the Malawi Digital Economy Strategy (2021- 26).
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