Satemwa Outgrowers Receive Electronic Payments

On Friday 9th October, some members of Msuwadzi Smallholder Farmers Association received electronic payments instead of usual monthly cash payments. This is part of a pilot scheme between Satemwa, Msuwadzi and Opportunity International Bank of Malawi (OIBM) whereby monthly green leaf payments are paid electronically by Satemwa into farmers bank accounts (all recently opened for this purpose). OIBM arrange a mobile banking facility to visit a central place every two weeks where famers can withdraw their cash or organise other services such as loans etc

This is a first in Malawi in the tea industry and the pilot is also being conducted by Sukumbezi Association and Lujeri Tea Estate. Not all the farmers opened bank accounts, but judging from the enthusiastic reception, it won’t be long before all farmers step into the 21st Century.

This is the first step in a wider intervention to improve the number of services available to the farmers, thereby improving their cashflow, access to relatively affordable credit (the cheapest credit available in Malawi from commerical banks at this time is about 19%, loan sharks can charge in excess of 50% per month), and overall tea farming practices.

The mobile unit had to use a generator as much of these areas are off the grid.