September 30, 2014

Afghanistan Joins Better Than Cash Alliance

By Sajad - Tue Jan 22 2013, 7:59 pm

110824-S-1034V-Today the government of Afghanistan announced that it has joined the Better Than Cash Alliance by committing to transition significant volumes of cash payments to electronic.

According to a statement released by United States Agency for International Development (USAID), The Better Than Cash Alliance works with governments, the development community and the private sector to adopt the use of electronic payments and provides resources to those who commit to make the transition.

The source further added, “Currently, the Ministry of Finance is partnering with the Ministry of Education and the Association of Mobile Money Operators on an innovative teacher salary payment pilot that aims to increase the number of bank accounts and electronic salary payments. The government is also conducting a mobile/electronic utility payment pilot in Kabul targeting 100,000 electricity customers.”

“We are pleased to join the Better Than Cash Alliance as a committing member dedicated to making the transition from cash to electronic payments,” said Mohammed Aqah, Director General of Treasury, Ministry of Finance in Afghanistan. “We recognize the value of accelerating the use of safe electronic payments as a solution for promoting financial inclusion, increasing transparency and creating a more secure world for women and their families.”

According to the USAID statement,at the end of 2012, more than 70 percent of Afghanistan government employees received their salaries electronically, whereas in 2006 this was less than 1 percent. The government of Afghanistan has made substantial progress in transitioning from cash to electronic payments, but there are many opportunities that still remain. While fewer than 5 percent of Afghans have bank accounts, some 65 percent have mobile phones and nearly 90 percent of the population lives in areas with mobile network coverage. The government of Afghanistan is committed to further expanding the coverage of electronic payments and making the process more efficient.

“We welcome the government of Afghanistan to the Alliance and look forward to supporting its commitment to empower citizens by transitioning to electronic payments,” said Dr. Ruth Goodwin-Groen managing director of the Better Than Cash Alliance. “There are real benefits for governments of increased transparency, accountability and security as well as increased efficiency and cost reduction in the long-term. But perhaps the greatest benefit goes to those citizens for whom reduced costs in time and money make a big difference, to those for whom security is paramount and to those who can use electronic payments to start to save and take advantage of economic opportunities.”

Afghanistan joins the governments of Colombia, Kenya, Peru, and the Philippines, along with development organizations USAID, the United Nations Development Programme, the World Food Programme, Mercy Corps, CARE USA, Chemonics International, and Concern Worldwide, which have committed to digitize their disbursements and payments to people living in poverty, thereby becoming eligible members for technical and financial support from the Better Than Cash Alliance.

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1 Comment

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  1. In the UK the banks and many organisations have switched to electronic payments almost 30 years ago and now it universally used by institutions and the public with much ease and comforts .
    The use of cheque books is almost finished and is not acceptable by many organisations .
    In Afghanistan the people get used to it and will benefit from this new system and also good for security reason too .

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