By Vincent Khonje:
When news broke that Social Cash Transfer programme (SCTP) beneficiaries would be receiving their money via electronic payment (E-payment), Judith Kilementi’s heart melted with excitement.
Kilementi, from Chithala Village in Traditional Authority (TA) Zulu, recalled the hardships that followed when transfers were made manually.
Usually, members of her cluster had to travel long distances to the pay points, which required money and, of course, something to eat, as they would often wait for hours to receive the cash.
The travel itself meant parting with a few banknotes, which was unwelcome to someone like her, who relies on the cash-outs from the programme.
“It was not easy; we often went hungry and the transport costs reduced the little amount we received. Hearing that we will now receive the money through digital transactions makes me really happy.
“I will not have to spend hours or use the money on transport,” Kilementi, a widow caring for seven children, says.
The government is now transitioning from manual payments to E-payment for its social protection beneficiaries, which include the SCTP and the Climate Smart Enhanced Public Works Programme.
This means all government cash-based projects or programmes are expected to disburse transfers electronically.
Mchinji District has made the transition from manual payment to electronic payment for the SCTP, commonly known as ‘Mtukula Pakhomo’ and the programme has now shifted to a mobile-based payment system using TNM Mpamba.
Petulo Mkwezalamba from Njelengo Village, TA Zulu, will receive his cash transfer for the first time under the new system and has already welcomed the idea.
Mkwezalamba has never received a cash transfer before and has just been enrolled.
To him, receiving the transfers via mobile money is ideal, as it provides the freedom to access his money when it suits him.
“Receiving money through a cellphone is perfect for me. I can withdraw the cash at a time that suits me without having to rush or travel to a distant location just to meet paymasters from the government,” Mkwezalamba says.
The government has been delivering transfers to SCTP beneficiaries via a manual payment system for years.
This method has proven to present numerous difficulties over time, including being extremely time and resource-intensive, posing security and fiduciary concerns and being difficult to adapt to in times of crisis.
District Commissioner for Mchinji, Lucia Chidalengwa, has hailed the move as a major improvement for the programme.
“This new arrangement brings several advantages. Logistical challenges that arose when officers were sent to manually disburse funds to beneficiaries will be minimised.
“Additionally, beneficiaries will no longer be exposed to theft, as they will now receive the transfers directly and confidentially through their phones,” Chidalengwa says.
The government’s agenda of digitising all government-to-people (G2P) payments focuses on effective and efficient programme implementation.
Chifundo Nanchukwa, Chief Social Welfare Officer at the Ministry of Gender, Community Development and Social Welfare and responsible for the SCTP, says the transition to electronic payments is crucial as G2P payments are embraced.
“This new system offers many benefits, as beneficiaries can access their money at any time, rather than being required to gather at a specific location.
“It will also reduce the non-collection of transfers and enhance financial inclusion, as beneficiaries will be using digital payment systems,” Nanchukwa says.
However, while the promotion of E-payment has intensified, there is a need to make the services more convenient for the people.
If mobile money transactions are to be widely adopted, there must be strong network coverage in most parts of the country.
While welcoming digital financial services in Mchinji, TA Ndawambe says it is difficult to switch to mobile phone money transactions because his area lacks a mobile phone network.
“Despite the advantages of the service, people in the area are being denied access due to the absence of either Airtel or TNM mobile networks.
“We are pleading with the mobile network operators to erect a tower as soon as possible so that we can enjoy these services,” the local leader says.
Digitising G2P payments offers several potential benefits, including providing beneficiaries with faster and more reliable payments, reducing delivery costs, improving efficiency and transparency, lowering fiduciary risks and offering a more adaptable response mechanism in times of crisis.
In Mchinji, the SCTP is supported by the KfW Development Bank.
