The Regulation of Mobile Money in Malawi

This paper aims to assist in developing an enabling legal and regulatory environment for market players and end-users in the mobile money space in Malawi, thereby encouraging that space to develop and grow. It provides a market update on mobile money in the country and tries to identify the main regulatory channels required for its development in the country. On the basis of both desk-based and field research, the report provides preliminary recommendations for the Reserve Bank of Malawi (RBM) for dealing with the existing regulatory challenges that can hamper the growth of mobile money. The paper covers the following sections in detail:

• Background on Malawi with a focus on access to finance, financial infrastructure, telecommunications infrastructure, and mobile phone penetration in the country;
• Mobile money in Malawi with a focus on providers and challenges to growth;
• Regulatory environment with a focus on regulators involved, coordination between regulators, and regulations pertaining to mobile money;
• Identification of regulatory challenges and preliminary recommendations for improving coordination among regulators, strengthening RBM’s mandate on mobile money, regulating the use of agent’s networks, and applying a risk-based approach to implementing AML/CFT measures.