Tea Association of Malawi (Taml) has launched a Digitisation of Wages and Income System for workers in its members’ tea estates across the country.
The system will see workers receiving wages through mobile money wallets and bank accounts.
This is a departure from past practice, where workers in tea estates were receiving wages in cash.
Speaking at a ceremony marking the launch of the system in Mulanje District, Taml Chairperson Sangwani Hara said the initiative marked a new era in the local tea sector.
Hara also said digitisation of the payment system brought dignity to workers in the sector.
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“Apart from just creating a decent workspace, this initiative will ensure financial inclusion for our workers which, as you know, the Malawi Government has also been promoting through the Malawi 2063 agenda,” Hara said.
He said, previously, workers used to access loans from loan sharks, which exposed them to challenges, including loss of property due to unfair payment systems.
The new system has been launched with support from the United Nations Development Programme in collaboration with Better Than Cash Alliance, an organisation that is working with governments, corporations and international organisations to accelerate the transition from cash to responsible digital payments.
Better Than Cash Alliance Head of Africa Oswald Kahonde said digital payments were beneficial.
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“Apart from the economic benefits to various countries across the world, there is a human perspective to digital payments in that they promote dignity among workers through enhanced access to formal financial services, loans, savings, insurance and other products,” Kahonde said.
Statistics show that the sector provides direct employment to over 60,000 Malawians.
