For decades, cotton trading in Malawi relied heavily on cash, exposing farmers to theft and delayed payments. The cotton regulatory authority, the Cotton Council of Malawi (CCM), faces significant inefficiencies in service delivery. This is largely due to the manual processing of transactions for thousands of smallholder farmers. In Malawi, the CCM is particularly constrained, serving over 50,000 farmers with only 23 personnel.
While temporary staff is engaged during peak cotton-buying periods, this approach drives up operational costs, and introduces risks. These can come in the form of as data inconsistencies, weak monitoring of ginner payments and loan repayments, limited fraud detection and inefficiencies in levy collection.
Collectively, these challenges undermine the CCM’s ability to deliver efficient, transparent and accountable services across the cotton value chain. To address these systemic challenges, Solidaridad and its partners implemented COTMIS. This digital platform is designed to improve transparency, strengthen accountability and promote financial inclusion across the value chain.
By the end of the implementation phase, seven stakeholders were working together. A total of 23,576 farmers were registered, with 14,651 farmers participating in cotton markets. Through COTMIS, 36,772 transactions were digitally recorded, covering the sale of 5,774 tons of cotton. All payments were processed directly into farmers’ mobile wallets or bank accounts by the Cotton Council of Malawi.
“The shift to digital payments addressed long-standing weaknesses in the cotton sector. Farmers received their income securely and without delay, while market actors and regulators gained access to reliable, real-time data. This combination helped rebuild trust and improve how the entire value chain functioned,” said Given Phiri, Country Manager for Solidaridad in Malawi.
At the buying points, COTMIS operated through a structured, multi-agent process. Farmers were first checked in by a Kvuno Agent, who confirmed identification details, outstanding loan balances and allowable cotton volumes. Ginner Agents then weighed and priced the cotton, after which another Kvuno Agent captured transaction data and uploaded photographic records into the system.
A Cotton Farmers Association (COFA) Agent independently maintained a control sheet to verify that each transaction passed through all required stages. Before payments were approved, twelve verification checks were conducted, covering farmer identity, quantities, prices, documentation and signatures. This separation of duties reduced opportunities for manipulation and removed ginner agents from the payment process.
“What made this system powerful was its emphasis on accountability and traceability,” said Candice Kroutz-Kabongo, Digital Innovations Lead at Solidaridad. “Every transaction left a digital footprint that could be verified. That visibility protected farmers, strengthened governance and showed how digital innovation can support fairer and more inclusive agricultural markets.”
Beyond improving efficiency, the transition to e-payments enhanced financial inclusion for smallholder farmers. With timely payments and digital records, farmers were better positioned to plan their finances, access financial services and build long-term resilience. The digital model also attracted interest from younger farmers, who saw it as more transparent and future-oriented.
As the initiative concluded its rollout phase, COTMIS stood as a proven example of how technology can modernise agricultural markets in Malawi, placing farmers at the centre while delivering transparency, security and trust across the cotton value chain.