DIGITAL ECONOMY OPEN FOR MORE ZAMBIANS, SAYS BOZ

BUUMBA CHIMBULU writes
@SunZambia
THERE is huge potential in Zambia to have more people financially included through digital channels and ultimately in the digital economy.
This is according to Bank of Zambia (BoZ) Director of Banking, Currency and Payment Systems, Lazarous Kamanga.
Over 90,000 active agents’ points are currently accessing Digital Financial Services (DFS).
Mr Kamanga said the figures demonstrated the huge potential Zambia had to have more people financially included through digital channels and ultimately in the digital economy.
He said this in a statement issued by the UN Capital Development Fund (UNCDF) following the release of the 2019 State of the Digital Financial Services Industry Report which was undertaken in partnership with the central bank.
“In recent years, the DFS landscape in Zambia has changed dramatically from the use of digital channels to deliver payment and financial services to the majority of commercial banks developing and deploying mobile applications for customers to access financial services, and e-money issuers using mobile phones to offer financial services,” Mr Kamanga said.
UNCDF Zambia Country Lead, Isaac Holly, said whereas there was growth in the adoption of DFS and an increase in usage rates, there was still a gap in second generation products beyond person to person (P2P) transfers and airtime purchases.
“This offers industry players an opportunity to innovate for a purposeful bouquet of financial products that meet the needs of different categories of customers,” Mr Holly said.
According to the report, while the market saw growth due to DFS providers’ remarkable efforts, businesses were impacted by factors beyond their control.
The report indicated that the BoZ when Zambia recorded Covid-19 in March this year encouraged the general public to reduce the use of cash to reduce person to person contact.
It said the BoZ and the DFS providers took measures to increase use of digital channels and this directive fast-tracked their plans to further digitise their financial activities.
“At the time of the survey in April 2020, 84 percent of DFS providers reported that they were confident that their businesses would remain commercially viable, which is an improvement from 2018 when 61 percent of providers said their businesses could generate enough revenue to cover operation costs.
“This assessment was done before the respondents had felt the real impact of the Covid-19 pandemic. The actual impact of the Covid-19 pandemic on the DFS industry will be further analysed as more provider and market data becomes available,” the report said.