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Zambia’s overall financial inclusion increased to 69.4% in 2020

• According to the FinScope 2020 Survey, overall financial inclusion increased to 69.4 percent, from 59.3 percent in 2015.
• Formal financial inclusion rose significantly to 61.3 percent from 38.2 percent.
• This is largely due to uptake of mobile money, which rose by 58.4 percent from 14 percent.

Financial education programs play an essential role in reducing economic inequalities among nations in the world.
It is important for Consumers to be equipped with financial knowledge for them to understand the available financial products and make informed and effective decisions.
Every year in Zambia, financial service regulators such as Bank of Zambia, Pensions and Insurance Authority (PIA), Securities and Exchange Commission (SEC) and other stakeholders commemorate the financial literacy week to raise awareness on the importance of financial education.
This year marks the 10th anniversary of the Financial Literacy awareness campaign in Zambia and in the last 10 years, the campaigns have been targeted at creating awareness amongst children, youth and adults on the need to acquire the knowledge, and skills about personal financial management.
Due to increased public awareness of the availability of financial products and services across the country, there are some notable changes in consumer habits and financial products which have made it easy for most Zambians to manage their finances.
In the past, most people used cash for daily purchases, but today, they frequently use digital payment technologies, such as mobile wallets or mobile payment apps.
And launching the commemoration of the 2022 Financial Literacy Week, Bank of Zambia Governor Dr. Denny Kalyalya, notes that technology and innovation in the financial sector has played a major role in raising the level of financial inclusion in the country over the last five years.
Dr. Kalyalya said according to the Finscope 2020 Survey, overall financial inclusion in the country increased to 69.4 percent, from 59.3 percent in 2015, while formal financial inclusion rose significantly to 61.3 percent from 38.2 percent.
He stated that the increase is largely attributed to the high uptake of mobile money, which rose by 58.4 percent from 14 percent.
“The use of digital financial platforms for the payment of retail and public services, including Government services has significant benefits to consumers and service providers alike.”
“Digital platforms facilitate relatively safe, efficient and convenient service delivery and allows for tracking of financial transactions. With regard to Government related services, the use of digital platforms is expected to enhance revenue collection and contribute positively to the national Treasury,” Dr. Kalyalya said.
Dr. Kalyalya however noted that the rise in the use of Digital Financial Services has also introduced significant risks for individuals as well as financial service providers.
“To address these risks, there is greater need to enhance cyber security and raise awareness about fraud to secure higher uptake and protect the consumers of digital financial services,” he stated.
And Dr. Kalyalya urged all stakeholders in the financial sector to work together and contribute to the financial inclusion agenda.
He said their contribution can be done through the development of appropriate infrastructure, provision of affordable customer centric products, delivery of financial literacy and promotion of consumer protection for the under-served population, especially in rural areas.
“The contribution of the financial sector towards the attainment of Vision 2030 and its underlying principles is being undertaken through the implementation of the National Financial Sector Development Policy, the National Financial Inclusion Strategy, the Rural Finance Policy and Strategy, the Capital Markets Development Plan and the National Strategy on Financial Education.
“As financial sector regulators, we have vested interest in ensuring that the financial sector is innovative, responsive to demand for financial services and that it supports Zambia’s economic growth, while maintaining stability. It is essential therefore, that the financial sector continues to expand its portfolio of products and services by leveraging reforms, digital innovations and targeted outreach,” he added.
Meanwhile, Bankers Association of Zambia (BAZ) Chairperson Mzinga Melu said the theme for 10th Financial Literacy campaign is placing the responsibility on consumers to become money smart.
She noted that Financial Literacy campaigns have yielded positive results as can be seen from the increase in financial inclusion over the years.
“When we started the financial literacy week the financial inclusion numbers were very low, for a while they were at 18 percent and we only used to wish that one day we would get to the 60 percent levels and its really good to see that 10 years later we are at a point where financial inclusion has increased from 59. 3 percent at the last count to where we are now which is 69.4 percent this is according to the FinScope Survey”
“The Financial Literacy theme which is Build your Future, Be Money Smart carters to the individual, it’s placing the responsibility on you and I, on the youth, on the children on saying how do I become money smart,” she said.
Zambia’s commemoration of Financial Literacy Week will run from 21st -27th March 2022 under the theme “Build your Future: Be Money Smart.”
The Commemoration is undertaken under the auspices of the Global Money Week, which is an annual global awareness-raising campaign on the importance of financial education for children and youth.

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