Zambia’s financial sector
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Zambia is committed to improve its financial standing as it launches three documents aimed at strengthening the development of the financial sector.

Supported by the World Bank Group, the documents recently launched include the National Financial Inclusion StrategyFinancial Sector Development Policy, as well as the Financial Capability Survey Report.

The strategy will guide Zambia’s financial sector in its plan to achieve the universal access and use of a broad range of affordable financial products and services.

The strategy’s implementation is expected to hit several targets by 2022, including:

  1. an increase in overall financial inclusion (formal as well as informal) from 59% to 80% in 2022, and an increase in formal financial inclusion from 38% now to 70% then;
  2. and improved physical access to high-quality financial services, including bank branches, agents, and ATMs, so that the number of financial access points will increase from approximately 7 to 10 per 10,000 adults.

The capability survey report launched alongside the strategy and policy reveals the relationship between financial capability and financial inclusion.

One of the findings shows that Zambians with low financial literacy tend to be less financially included and tend to use more informal products than those with higher levels of financial literacy.

“Enhancing the financial sector will allow all Zambians to reap the full benefit of financial inclusion,” said Felix Mutati, Finance Minister of Zambia.

“It will enable individuals to use the right financial services to make plans and manage risk, and it will help firms gain access to affordable financing to help them facilitate innovation and growth, and create employment,” Mutati added.

Zambia’s financial sector

Among the many challenges identified in the country’s financial sector, low financial capabilities and little willingness to use formal financial products and services are key to increase usage of formal financial services.

In response to these challenges, the government requested the World Bank’s support in its efforts to increase financial inclusion. Read more…

By launching the strategy, Zambia has joined more than 30 countries that have launched similar strategies, the Bank noted without specifying the other countries.

 

Featured image: Stock