Finance and National Planning Minister Dr. Situmbeko Musokotwane says financial inclusion is a moral imperative that must reach everyone and the savings from digital payment systems in government operations alone could enhance social sector investments.
Reflecting on the upcoming Digital Government Africa Summit to be hosted by Zambia in October, Musokotwane also pointed out that the data shows a significant gender gap in financial literacy, with women being more disadvantaged.
Musokotwane said financial inclusion, digital payments, and fintech collectively drive economic growth, enhance efficiency, and improve governance.
“The introduction of digital systems in Government operations alone has the potential to save up to 1.1% of GDP by reducing inefficiencies and leakages. The savings would be an important fountain of hope for social sector investments. Furthermore, improved access to digital technologies boosts private sector productivity and public sector effectiveness,” he stated.
He said inclusion is not just a policy and that the government has taken strategic strides to leave no citizen behind through its financial inclusion strategy spearheaded by the Central Bank, which, he claims, has laid a strong foundation for broadening access to financial services.
“Data gathered shows a significant gender gap in financial literacy, and the inclusion strategy has been pivotal in reducing the gap. We are calling more women to the table to engage; prioritizing their financial access and the availability of credit to women-owned and managed Small and Medium Enterprises,” he said.
He highlighted the transformative power of digital technologies which come to life in people’s lives when adopted and that Zambia was now in the top ten low-income countries E-Government Development Index.
“The National Digital Transformation Strategy 2023-2027 outlines our path towards a digital economy and the creation of an enabling environment for digital innovation and entrepreneurship. Payment systems are only one of several areas in which the Zambian Government can—and is—taking steps to use digital tools to increase efficiency in public service delivery.”
“We have made platforms people use every day as part of our systems, and digitalized key processes critical to our economy, such as tax collection by the Zambia Revenue Authority.”
Musokotwane cited statistics that show Zambia increased the volume of mobile money transactions by 46% between 2017 and 2021, with a fourteen-fold surge in value.
He said despite the existential challenges, the positive growth trajectory is a clear indicator of the strong impact of the government’s strong policies.
He also pointed out the urban-rural digital divide and the low levels of digital and financial literacy which continue to hinder progress but quickly pointed out that the government is determined to collaborate with stakeholders to intensify efforts to educate and empower Zambians to fully participate in the digital economy.
Musokotwane touted fintech and emerging technologies as the engines driving the country’s digital transformation.
“Zambia’s fintech landscape is burgeoning, with numerous start-ups pioneering innovative solutions in digital payments, mobile banking, and blockchain technology. These innovations are not just reshaping the financial sector; they are also redefining the way we live and do business.”
Lusaka will host the Digital Government Africa Summit from 2-4 October.
