By Wellington Sibale

Neno, October 25, Mana: Government has announced a shift from manual cash transfers to electronic payments in Neno District for all the social protection programmes, aligning with its agenda to digitize all government payments.

Speaking during a District Executive Committee (DEC) meeting on Thursday, Shock Sensitive Specialist at the National Local Governance Finance Committee (NLGFC), Muda Mkutumula said electronic payments have more benefits than manual.

Mkutumula said payment for cash-based project benefits will now be disbursed electronically and advantages of E-payment, include enhanced safety, lower transaction costs and faster payment processing.

“This aims to prepare the country's economy for the adoption of digital financial services,” Mkutumula said.

Currently, the government relies on a manual payment system to deliver funds to beneficiaries of the Social Cash Transfer Programme (SCTP) and the Climate Smart Public Works Programme (CSPWP).

However, Mkutumula noted that this method has proved inefficient requiring district staff to spend up to two weeks distributing cash and using nearly all available vehicles and personnel, adding that the manual system is also vulnerable to security risks such as theft and is difficult to adapt during times of crisis.

“To address these challenges and as part of the commitment to digitize payments, the government is promoting electronic payments (E-payments) for cash disbursement to beneficiaries,” Mkutumula said, adding that this will reduce travel and waiting times making payments faster and safer.

Mkutumula explained that E-payments mitigate risks related to handling large sums of cash including transportation and security expenses and also support financial inclusion, offering beneficiaries access to financial services and contributing to the strengthening of the financial sector.

Wealthnet Finance Plc has been selected as the service provider for Neno District following an open and competitive bidding process. The company will use its KakuPay Smart Money platform to disburse payments.

A representative from Wealthnet, Dingiswayo Zulu assured beneficiaries of smooth service delivery.

“For those without phones, we will offer an affordable instalment plan for purchasing a phone enabling them to receive government payments,” Zulu said.

He however urged beneficiaries to safeguard their Personal Identification Numbers (PINs) to avoid falling victim to scammers and fraudsters.

According to Zulu, participants will receive their funds through mobile wallets after an SMS notification.

He said the participant will withdraw cash from a Payment Service Provider (PSP) agent, with the government covering transaction fees for an agreed period with the (PSPs).

The government has already implemented E-payment systems in 21 districts. In Neno, however, the process will begin once Wealthnet Finance and the Neno District Council complete sensitization and training sessions for beneficiaries.