‘Literacy levels slowing down digital finance usage

Fri, 19 May 2017 12:46:16 +0000

BY MAILESI BANDA

 ZAMBIA has challenges in the increased usage of digital finance due to power and network challenges as well as low financial literacy levels, especially in the rural areas.

This was said by Financial Sector Deepening Zambia manager (SME finance) Jimmy Situmbeko.

Mr. Situmbeko said the network and low literacy levels had created challenges to digital finance.  Speaking in an interview with the Daily Nation, Mr Situmbeko, however, said Zambians were increasingly using transfer agents to move money, and digital product innovations into savings and credit products, adding that this reflected market growth.

He explained that if cash flowed out of people’s houses into financial service providers, there would be more to lend to those who wanted to invest and they would then pay interest.

He said the Government was working towards realizing the importance of financial innovation.

“Government has realized the importance of financial innovation, and is encouraging new products to serve low income households better. There are proposals to introduce financial literacy curriculums in schools from primary to tertiary education,“ he said.

He said financial service provision was important for all Zambians, adding that the organization was looking at the best way they could help in the implementation of financial inclusion for all Zambians using the media.

He suggested that since the largest beneficiaries of Government support in terms of financing were the small holder farmers through the Farmer Input Support Programme (FISP), the Government should include financial education and digital financial services for the beneficiaries.