Business Editor's Picks Financial Insights Telecom

Zambia records increase in mobile money transactions

• The number of active mobile money subscribers increased from 8.6 million in 2020 to 9.9 million subscribers in 2021.
• The volume of mobile money transactions increased from 746.5 million to 843.1 million transactions.
• Transactions grew from K105.6 billion in 2020 to K169.4 billion in 2021 representing a growth rate of 60%.

Minister of Technology and Science has disclosed that the volume of mobile money transactions rose from 746 million in 2020 to 843 million in 2021, representing an annual improvement of 11.7 percent.
Speaking during the signing of a Memorandum of Understanding between Lusaka Chamber of Commerce and Industry and Cellulant Zambia, Felix Mutati says this is according to the 2022 Zambia Information Communication Technology Authority (ZICTA) Annual Market report, which also shows that the number of transactions grew from K105 billion to K169 billion, representing 60 percent growth rate, while active mobile money users increased from 8.6 million in 2020 to 9.9 million in 2021.
Mr. Mutati urged businesses to digitize payment processes in order to take part in the shift to cashless transactions, because government is determined to enhance financial inclusion.
“To this effect, the national financial inclusion strategy speaks to government’s vision to achieve universal access and usage of a broad range of quality and affordable financial services that meet the needs of both individuals and enterprises.”
“To us, this means that irrespective of social or economic status, gender, or level of education, the new dawn government wishes to ensure that every segment of Zambian enterprise society has access to basic financial services. Access to and usage of a broad range of quality and affordable financial products and services,” Mr. Mutati stated.
And Mr. Mutati explained that the Memorandum of Understanding seeks to create through collaborative means a payment system is used to settle financial transactions through the transfer of monetary value and consists of the various mechanisms that facilitate the transfer of funds from one party to another.
At the very core of every business is its ability to take in revenue and to secure its supply of inventory and other inputs.
“The Tingg platform creates greater access for the 10s of millions of mobile money users in Zambia to make simple payments for any goods or services. However, the shift most relevant to business today are advances in the digitization of payment initiation, infrastructure and information.”
“Businesses increasingly recognize the importance of adopting digital technologies to reduce the administrative burden on their business. Digitizing payments is a necessary part of that story. Businesses have recognized that paper based payments and manual processes increase their administrative costs, cause inconvenience to their customers and suppliers, and they risk losing essential records,” he said.
He was speaking in a speech read on his behalf by Acting Permanent Secretary, Chikatizyo Musonda.
Speaking at the same event, Lusaka Chamber of Commerce and Industry (LCCI) President Alexander Lawrence said the partnership with Cellulant Zambia aims to spur the use of digital payments to allow enterprises to shift towards digital economy and further support Small and Medium Enterprises (SMEs) in the market.
Mr. Lawrence also disclosed that the Chamber is pushing and advocating for Lusaka to become a regional trade and investment hub, hence the infilling of different technology platforms will help the ease of business and feed into the African Continental Free Trade Agreement (AfCFTA) that Zambia has signed.
He noted with dismay the growing fragmentation in digital payments as most businesses offer mostly card swiping options and rarely have a platform for mobile payments other than peer to peer options.
“As LCCI continues to embrace the power of technology in fostering business growth and sustainability, Cellulant will support businesses in this dynamic journey,” Mr. Lawrence explained.
Meanwhile, Cellulant Zambia Country Manager Gilbert Lungu thanked government for creating an enabling environment for businesses to thrive.
The unison of mobile payments negates the need to sign up to multiple payments providers, and we will soon offer banks as an option, giving the consumers more choice from the comfort of their mobile phone. There is growing evidence that the Zambian market is ready for intuitive payment technologies that ease doing business.”
“This partnership will enable LCCI members to access digital financial solutions so as to take advantage of these opportunities which herald the acceleration of economic growth for businesses through payments.” he stated.

Related posts

Economist attributes Kwacha depreciation to normal macro-economic indicators

Money FM

ACC, Swedish organization pen deal

Money FM

Kwacha starts weakening again

Money FM

Leave a Comment