A Review of Financial Inclusion Trends in Zambia

Download or read book A Review of Financial Inclusion Trends in Zambia written by John Chimfwembe and published by . This book was released on 2022 with total page 0 pages. Available in PDF, EPUB and Kindle. Book excerpt: Financial inclusion is now seen as a key element in inclusive growth as access to finance allows economic players to make longer-term investment and consumption decisions, participate in productive activities, and adapt to unexpected short-term shocks.This article seeks to provide a structured analysis of the current trends in financial inclusion in Zambia. It helps break down the reported level of financial inclusion, possible drivers, and policy recommendations. Specific questions addressed in this paper are; What is the status of financial inclusion in Zambia? what are the key drivers of financial inclusion in Zambia? What policies have been put in place to foster financial inclusion? Financial inclusion efforts in Zambia have focused on designing policies and strategies to address limited access and uptake of financial services and products in rural segments of the country. Results from the FinScope Zambia 2020 Survey indicated a net increase in financial inclusion of 10.1 percentage points to 69.4% from 59.3% in 2015. Key findings show that while Zambia enjoys a bank-centric financial sector, mobile money has emerged as a major driver of financial inclusion. Mobile money has been a game-changer, especially in rural areas where access to banks remains limited. The uptake of insurance, micro-finance, and pension services and products is quite low.