29th September 2020

Press Release: FSDZ signs MoU with Bank of Zambia on financial inclusion

Credit: FSDZ

The Bank of Zambia and Financial Sector Deepening Zambia signed a memorandum of understanding to increase financial inclusion in the country in 14 fourteen areas. 3 key ones are:

  • Implementation support for the National Financial Inclusion Strategy;
  • Support and development of a financial market system that works better for poor communities and households, particularly women and youth, smallholder farmers, and micro, small and medium-sized enterprises; and
  • Development of digital financial services and financial technology, to help shift Zambians from cash payments to digital transactions over time.

In his keynote address, Bank of Zambia Governor Dr. Denny Kalyalya said,

“Financial inclusion is one of the Central Bank’s strategic focus areas. The Bank of Zambia sees this MoU as useful in expanding formal financial inclusion by 16% over the course of this cooperation. The environment is ripe for innovative ideas including digital financial services which have proved to be a platform to drive financial inclusion”.”

“Our previous MoU with FSDZ achieved several milestones. This new MoU will surpass it, especially with the former Governor Dr. Caleb Fundanga at the helm of FSDZ. He understands the challenges Zambians face in accessing financial services,” Dr. Kalyalya added.

Also speaking at the event, FSDZ Board Chairman Dr. Caleb Fundanga said,

“By signing this MoU today, FSDZ hopes to support the Bank of Zambia in meeting its multiple commitments for full financial inclusion under the Maya Declaration, in the Bank of Zambia’s Strategic Plan 2016-2019, and in the upcoming National Financial Inclusion Strategy.”

The relationship between the Central Bank and FSDZ is one that has been cemented over time. A notable collaboration was the 2015 Finscope Survey, which measured financial inclusion. Financially included Zambians rose from 37.3% in 2009 to 59.3% in 2015. We made very good progress, but we still have a way to go.

Source: FSDZ