The Price Water House Coopers (PwC) Zambia says financial inclusion continues to be a topical agenda for the financial industry.
The Financial services leader PWC says financial inclusion continues to be a topical agenda for the financial industry in the country.
Speaking during a presentation on the 2018 Zambia Banking and Non-banking Industry Survey PWC Partner Andrew Chibuya says Mobile Money is the channel through which the agenda is being driven and its growth has continued on an exponential trajectory.
He said the total value of mobile money transactions processed in 2018 amounted to K22 billion resulting in 8 percent contribution to the Gross Domestic Product (GDP).
Mr Chibuya said in 2012, the mobile money tractions stood at 1.1 billion representing a compounded annual growth rate of 63 percent.
He stated that according to Kenya’s central bank, Kenya which is considered as the gold standard with regards to mobile money use in the world had transactions equivalent to 44 percent of its GDP processed through mobile money channels in 2018.
He said this illustrated the potential that mobile money has in achieving the financial inclusion and facilitating economic activities.
Mr. Chibuya also said the report has reviewed that credit risk has continued to rank as one of the top five pressing issues for both commercial banks and non-banking industries in the year under review.
He said analysis of the survey indicate that credit risk was rated as a top issue for the non- banking facilities while the banking sector ranked it as fifth most pressing issue .
He said among the country’s six largest banks, credit risk was the most pressing issue last year.
Mr. Chibuya said the banking industry wide non-performing loans ratio decreased from 12 percent in 2017 to 11 percent in 2018 but has still remained above the prudential of 10 percent.