MINISTRY of Finance permanent secretary Chikuba Mukuli says Zambia targets to increase access to finance to at least 80 percent of the country’s population by 2022.
Mukuli observes that financial sector is critical to the attainment of national development.
Speaking at a three-day media training organised by Financial Sector Deepening (FSD) Zambia in Lusaka, Mukuli said financial inclusion contributed positively to the growth of gross domestic product (GDP) in the country.
He said the country had made a number of strides to achieve its target by next year.
Financial Sector Deepening Zambia, a non-profit organisation that providing information, innovation and impact to increase financial inclusion in Zambia organised a media training to enhance and sharpen journalists skills on reporting on financial inclusion stories.
“Financial inclusion entails access to and informed usage of broad range of quality and affordable savings, credit, payments, insurance and investment products and services that meet the needs of individuals and businesses (formal and informal),’’ he said on Tuesday.
‘’Financial inclusion is the bridge between economic opportunity and outcome. Therefore, our medium term financial inclusion targets for Zambia is increase access to finance to at least 80 percent of the population by 2022. Access to financial services opens doors for families, allowing them to smooth out consumption and invest in their futures through education and health. Access to credit enables businesses to expand, create jobs and reduces inequality.”
He said financial inclusion had increased by 10 percent from 59 in 2015 to 69 in 2020.
“More adult people are financially included in urban areas by 83 percent compared to those in rural areas at 56 percent,’’ said Mukuli.
‘’Use of mobile money transactions has significantly increased in 2020 compared to 2015 while the uptake of the banking services has slightly gone down. There have been marginal improvements also in the uptake of pension, insurance and micro-finance.”
And FSD Zambia executive director Betty Wilkinson said the organisation recognised the need for robust media engagement to ensure that there was adequate information and understanding of financial inclusion.
She said financial inclusion had potential to foster development and enhance financial education among different audiences, especially the most vulnerable in society.
“As media practitioners, you have to know everything, because at any given time you will ask something on what is going on. You have to read a lot to enhance your knowledge on financial reporting,” said Wilkinson.
“Yes, the banks are scared of the coming Mobile Money. World over there were positive strides that were being made.”
And financial consultant Marvin Ilunga urged journalists to sensitise the public on the increasing number of ponzy schemes and other financial scams.
He said financial inclusion has been shown to positively affect poverty alleviation, private sector development, and financial sector stability.
Ilunga further said with the coming of money on the market, there was a positive relationship which was being created with the banks as dealers were not keeping money in their homes but in bank accounts.
©Kalemba May 15, 2021
