Industry players have welcomed the imminent phasing out of cheques, saying apart from its alignment to the digital economic drive, it solves delays users were facing to clear high-value cheque payments. This follows an update by the Reserve Bank of Malawi (RBM) and Bankers Association of Malawi (BAM) that the phasing out of cheque usage will come after the amendment and enactment of the Bills of Exchange (Amendment) Act at the next sitting of Parliament. A joint statement by RBM Governor Macdonald Mafuta Mwale and BAM chief executive officer Lyness Nkungula said the amendment of the Act will allow for the phasing out of cheques and cater for technological advancements, protection of users and reduction of fraud incidents.
In an interview on Monday, Manufacturers Association of Malawi chairperson Gloria Zimba said cheques have been delaying transactions, especially with high value payments as it takes time to have proof of payment. She said: “For example, if a manufacturer is buying something from a supplier, especially production and packaging materials, you would find that the cheques, especially when the value is huge, take a lot of time to clear in the system. “During that waiting period, a supplier at times holds on to the material, saying we can only deliver after we see that the cheques are cleared.” Zimba, who is Castel Malawi human resource and corporate affairs director, said cheques also created a conducive environment for fraudulent transactions.
Information and communications technology (ICT) and financial technology (Fintech) experts said the move was structurally sound and forward-looking, saying it aligns well with the country’s digital economy agenda. ICT expert Bram Fudzulani said on Monday that the move aligns with modern payment system principles. He said: “Besides the fact that the second quarter of 2025 the volumes had grown, cheques are slow, costly, risky and incompatible with digital economies.
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“While cheques once played a critical role in formal payments, their relevance has diminished in modern financial ecosystems and the Reserve Bank of Malawi is just making sure that as a country, we align with the global trends.” In a separate interview, Fintech expert and country manager for PawaPay limited Arthur Muyepa said the phasing out of cheques will help to modernise the country’s payment infrastructure. “It will help to shift high-value transactions from slow, paper-based processes to faster, safer digital rails that support interoperability between banks and fintechs,” he said. But Consumers Association of Malawi executive director John Kapito blamed the quality of the digital payment platforms, high charges and network failures for frustrating consumers.
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