I have had the privilege of being part of Rwanda’s journey to Vision 2020 since 2010, with a specific focus on building the country’s payments systems in the last four years. One thing is for sure, a cashless or cashlite society can realized when championed by government.  Today, most visitors coming to Rwanda are able to pay with digitally using cards for visas, park permits, tourism fees, at hotels and many restaurants in the city/major cities.  In fact may be hard to find a hotel/tourist spot not accepting cards because the government has made digital payments are in place ahead of a big conference.  Most of our visitors/tourists leave happy with great memories having had a great experience complete with simplified cash paymentsJ.

There are also a growing number of Rwandans who can go for at least a week without needing cash because many supermarkets, fuel stations, hotels, restaurants, a few pharmacies etc. are accepting cards.  This is all great progress, but fact is cash is still king and we are barely scratching the surface in seeing cashless take shape.  We have set a bold goal of achieving 90% financial inclusion by 2020 and our actions must be bold as well.   There’s no doubt digital payments will be a catalyst which can catapult Rwanda closer to the cashless and financially inclusive society we a working for.

By availing cashless payment options at government offices, governments can shape the type of behavior needed to make cashless a reality. We often go to great lengths to make it easy for tourists but do little to do the same for locals.  Most governments require citizens to bring cash/checks and in the case of Rwanda, one must go to a bank to deposit money on institutions account and bring back a receipt.  Local Government fees (for birth certificates, IDs), Immigration fees (for travel documents), Traffic fees and National insurance (Mutuelle de Sante), to name a few, are paid through the bank with paper receipts required to complete any process.  This has made paying for services a daunting and costly task while promoting a cash and paper process moreover we want a digital/ICT driven society.   For example to pay for an ID which costs Rwf500 it can easily turns into over Rwf1500 when you must travel to nearest bank branch and probably pay bank for handling your cash payment.  The cost to both government and citizens is simply enormous both in time and money. We should change this immediately

Allowing people to pay digitally with cards and/or mobile onsite, will bring greater efficiency and most importantly better service delivery to citizens. Availing formal payment tools (bank tools) shall motivate citizens to open bank accounts because it allows them to get financial tools such as a Visa card (plastic or virtual via mobileJ) for convenient and secure payment. A bank account means formal financial inclusion, which is what we want for our people because it allows them to also build savings which can be complimented with loans, insurance and other financial services for personal development.  Governments can also follow the example of India, another emerging market, by providing tax discounts to those utilizing cashless payments.  http://www.hindustantimes.com/business/govt-proposes-tax-benefits-for-credit-and-debit-card-payments/story-gBwdJGqbfF5HztvLAUwXGM.html I am sure our tax revenues will be greater with this initiative taking us closer to weaning off aid once and for all.

With more of us using digital payments there will be greater efficiency in services’ delivery, greater demand for formal financial services and tools, more deposits in our banks for increased lending at lower interest rates, greater financial inclusion – a definite win-win for the economy and the people. It is my hope that our governments can make digital payments a way of life by leading by example in making them something EVERYONE – EVERYWHERE wants in order to better their lives.