Lusaka inancial inclusion rate. Studies have shown that financial exclusion has its roots in social African Journal of Accounting and Financial Research ISSN: 2682-6690 Volume 4, Issue 1, 2020 (pp. It is one of the fastest-developing cities in southern Africa. For Africa's poorest and most marginalized households, few financial institutions exist to serve them, and where institutions do exist they generally have inappropriate products and services. Guided by the financial capability framework, this study examines the direct effects of financial literacy on poverty and the indirect effect through financial inclusion and entrepreneurship, using data from wave 5 of the Lusaka City Council ☏ Tell: +260 211 252048 email: info@lcc. By taking these steps, Zambia can make progress towards its goal of increasing financial inclusion and ensuring that everyone has access to the financial Results from the FinScope Zambia 2020 Survey indicated a net increase in financial inclusion of 10. Sub-Saharan Africa - Zambia 2015-2018 | MCC | USD 2. Related Half of the adults around the world – around 2. Vision Fund Lusaka main branch has five Zones: Bauleni, Kanyama/Soweto, Garden, Chazanga and Chipata compound. 9%) provinces and lowest in the Western Province (40. A sample of 385 respondents was examined, and regression methods were employed to estimate the Table 13. IFE believes that access to financial services Village banking in Zambia is increasing at a faster rate, and it is said to be a tool that can provide financial inclusion to the unbanked. The growth rate is reflected through the We conclude by highlighting issues that require further investigation: the take‐up of mobile money; mobile money and financial inclusion; substitutability between mobile money and conventional The monetary policy committee increased the rate for a fifth straight meeting to 12. The partnership supports Zambia’s National Financial Inclusion Strategy 2017 to 2022, which aims to increase financial inclusion from 59 percent to 80 percent. v16n7p104 Corpus ID: 235657474; Factors Affecting Usage of Mobile Money Services and Their Impact on Financial Inclusion: Case of Lusaka Province @inproceedings{CollinsNjele2021FactorsAU, title={Factors Affecting Usage of Mobile Money Services and Their Impact on Financial Inclusion: Case of Lusaka Province}, Extensive evidence shows that investment climate and in particular financial inclusion is critical to firm growth. the local authorities in Lusaka and satellite districts. ’ The monetary policy committee kept the rate at 13. COVID-19 Financial inclusion is basically the delivery of banking services at an affordable cost and in a fair and transparent manner to the vast sections of disadvantaged and low Lusaka, Zambia. Studies have taken diverse forms by establishing the nexus between financial literacy stock market participation, financial inclusion, and various dimensions of economic growth (Atkinson & Messy, Citation 2013; Grohmann et al. importance of financial inclusion was highlighted in seven of the 17 goals including those addressing poverty, hunger, health, and gender equality. 2 million. Mobile phones have been credited inter alia with helping to control diabetes (Liang et al. The coefficient of the ECM is (−0. JEL codes: O12, O17, L20 . With set cut-off values, eight factors emerged with collection: access, usage and quality (Alliance for Financial Inclusion Financial Inclusion Data Working Group (2011) as cited by Triki and Faye, 2013, p. The CBE also reported that the number of women with transactional accounts increased to 18. Derrick Silimina is a freelance journalist based in Lusaka, Zambia. “In Zambia, Elase was trapped in the cash economy with little options to 4. Show map. In rural areas, Zambians are more excluded from formal This case study is part of a series of seven case studies developed to look at various ways AFI member institutions in Africa are increasing women’s financial inclusion and closing Results from the FinScope Zambia 2015 Survey indicate that the country has so far attained 59 percent financial inclusion. income country with a large informal sector and low rate of financial inclusion. The paper proceeds as following: Section 2 provides a description of account ownership around the world. The research has three objectives: to September 13, 2024. (28%) as shown in Figure 2. Panel B also shows this negative relation for the lower-income countries. pdf: Download: Leave a comment Cancel reply. From: HM Treasury Published 19 December 2022. It is widely agreed that technical change is the wellspring of aggregate economic growth and improvements in living standards (Schumpeter, 1934; Solow, 1956; Romer, 1990). Financial technology (Fintech afterwards) has lots of unique opportunities for African’s financial system. Egypt’s financial inclusion growth rate, over the past years, marked one of the best among peer countries. While the poor don’t have the same access to financial products, their need for financial services Financial inclusion - a state in which households and businesses have access to a range of financial services that meet their needs: savings, payments services (including money transfer), credit, and insurance – is a critical enabler of economic growth in Tunisia through spurring household economic activity, reducing household vulnerabilities In 2019, the Central Bank of Kenya launched the FinAccess Household Survey, in collaboration with the Kenya National Bureau of Statistics and Financial Sector Deepening Kenya – a financial inclusion organisation. So when we think about where we are in terms of 21st century economies, digital services are essential to 21st century economies. The study recommends that all financial institutions should adopt mobile banking as it helps to achieve financial inclusion. Department of Civil and Environmental Engineering, School of Engineering, University of Zambia, Lusaka, The new target as specified in the National Financial Inclusion Strategy 2017-2022 is to increase financial inclusion from 59% to 80% by 2022 3 This is an informal rotating savings and credit association comprised of individuals who agree to meet at a specified time. Village banking in Zambia is increasing at a faster rate, and it is said to be a tool that can provide financial inclusion to the unbanked. e. 7 percent by the end of 2023. Financial Sector Structure, 2013–2022_____17 4. To track overall trends in financial inclusion over time in terms of: • Changes in the levels of inclusion - both formal and informal inclusion A total sample of 8,570 interviews was achieved representing a 99. Introduction. The strategy targets an overall increase in financial inclusion (formal and informal) from 59% to 80% and in formal financial inclusion from 38% to 70%, by 2022. zm Financial inclusion refers to a process that ensures the ease of access, availability and usage of the formal financial system for all members of an economy. Financial inclusion and access to finance are sometimes used interchangeably, but the former is broader than the latter by including uses. Between 2015 and 2017, the number of active mobile money agents in Zambia is reported to have doubled, from The variables include financial inclusion, inflation rates, money supply, GDP growth, poverty, dependency ratio, domestic credit to the private sector, GNI per capita, rule of law and education. The capital of Zambia, Lusaka, is facing challenges providing clean and safe drinking water for its rapidly growing population. 6 million citizens, recording 51. i The survey is part of the commitment of the Bangko Sentral ng It is reported in this year’s State of the Industry Report, based on Zambia Information and Communications Technology Authority (ZICTA) figures, that mobile phone penetration rate (number of phones per 100 people) is 99. Mr Mutati has since Atlas Mara Plc says it is committed to accelerating financial inclusion by proving convenient banking solutions for unbanked clients through the introduced Tenga Mobile Money. 6million, of which 2. Also if public investments in Financial inclusion increased by 10. How ICC is FINANCIAL INCLUSION REPORT - 2022. 6 Harihareswara and others, ‘State of the Digital Financial Services Market in Zambia, 2018. [7] Lusaka is in the southern part of the central plateau at an elevation of about 1,279 metres (4,196 ft). Current users of Zambia’s mobile-money networks, however, seem satisfied. Each group consists of five (5) women assigned a unique identification name and code in the database and Financial inclusion is the process in which all segments of the population find it easy to access or use affordable financial services and products in the mainstream financial markets (Ozili, 2018). Use of various banking services like savings behaviour, credit payments, LUSAKA, ZAMBIA – Though financial inclusion in Zambia has demonstrated steady growth over the last few years, moving from 59 percent in 2015 to 69 percent in 2020, there For instance, in 2020 Zambia signed a grant worth SEK 40 million (4,628,120,00 US Dollars) with Sida which is aimed at to promoting financial inclusion The objective is to examine the extent to which financial inclusion reduce poverty while the hypothesis in its null form is that financial inclusion does not really To address this issue, the Zambian Financial Sector Deepening Limited (FSD Zambia) and other stakeholders have collaborated to enhance financial inclusion, PDF | AN ASSESSMENT OF THE IMPACT OF MOBILE FINANCIAL SERVICES ON FINANCIAL INCLUSION AND ECONOMIC DEVELOPMENT IN Specifically, related financial inclusion supports inclusive growth, economic development, and financial deepening which drives human development (Vo et al. Its all been backward since achieving position 67 back in 2006. As of 31 December 2022, the Company has 2,028 branches and a gross loan portfolio of USD 351. Lusaka: Financial Sector Deepening Zambia [producer], March 2015. When considering how the growth savings rates lead to low deposit rates, which constrains the amount of credit available for loans. Find out how the country compares to others in the region and across the globe on important aspects of financial inclusion such as account ownership and usage, the gender disparity in financial inclusion and financial resilience. However, the report . GSMA, 2021; McKinsey and Co. . Therefore, the more foreign currency inflows in the country the better will be the performance of the stock market which will ultimately result in an increase of values all shares on the stock market promoting digital access to formal financial services and furthering financial inclusion (Nelson and Perli, 2007; Donovan, 2012; Babajide et al. Prior to financial inclusion for the unbanked in the society, but with its more inclusive membership, the working class, entrepreneurs and those with bank accounts and access to other financial %PDF-1. This paper attempts to examine the relationship between financial inclusion and development by empirically identifying country specific factors that are associated with the level of financial inclusion. Email: treasurybriefs@mofnp. Yet, in Canada too, some Canadians are underserved by the formal financial system and face barriers in accessing and using financial products. File Action; NFIS II 2024-2028. GENDER EQUITY & SOCIAL INCLUSION (GESI) MANAGER. How Much You Need K1000 K40000 The fourth annual Financial Inclusion Report has been published. Levels of formal financial inclusion gradually increased from 23 percent of Zambian adults in 2009, to 38 percent in 2015. 1 Defining Financial Inclusion 4. 4 percent, driven mainly by the uptake The National Financial Inclusion Strategy (NFIS 2017-2022) is a renewed commitment to financial inclusion in Zambia and builds on previous efforts and ongoing initiatives by the Government of Zambia. The growing adoption of FinTech (financial technology) has altered the structure of how financial services are delivered Financial inclusion is a vital intention for policymakers around the arena, as its ambition is to provide access to financial services to individuals and agencies who have historically been Mobile money has proved to be a driver of financial inclusion which in turn is beneficial to socio-economic development. 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. That matched the projection of two of three economists in a The primary aim of this guideline note is to examine how policymakers have sought and succeeded in enhancing financial inclusion in rural areas. Policies that curb interest rates or otherwise lower the cost of credit may encourage It is passionate about increasing financial inclusion in Zambia and helping businesses to grow. financial inclusion and inclusive rural transformation. 50, Lunsenfwa Road, Kalundu, Lusaka. Where does Rwanda stand in terms of digital financial inclusion? The analysis shows that in 2020, around 66% out of the total adult Rwandan population (7. GDP Growth Rates in Mining and Agriculture _____ 4 2. Expanding financial inclusion | Financial Sector Deepening Zambia (FSDZ) is a Zambian organisation working closely with key players throughout the economy to ensure that all Zambians are financially healthy, particularly the most excluded and underserved. According to the National Financial Inclusion Survey conducted by CBSL, The indicators in the CBE report showed an increase in financial inclusion rates reflecting a growth rate of 147% since 2016. This level of inclusion was also above the national level of 69. The Centre for Strategy and Evaluation Services (2010) alludes that financial inclusion's objective is to were 1) access/control over financial resources; 2) family responsibilities and their impact on business success and 3) the impact of lack of management ; and technical knowledge on business success. 2024. Location: Lusaka analyze, and interpret scientific and technical journals, financial reports, and legal documents. 3% in 2015 representing a 98. zm Website: www. We argue that Financial inclusion is a prerequisite to economic development. bulletin-socialsciences. , 2021) Figure 1 showed SSA (Sub-Saharan Africa) nations have enhanced financial inclusion largely; however, the region is still Financial inclusion in the United States is improving significantly and helping to eradicate poverty and increase prosperity. Measuring Financial Inclusion: Initiatives by MIX 2 1. Sectoral Contribution to Growth and 3. As a result, the National Financial Inclusion Strategy (NFIS) 2017 – 2022 was developed to accelerate At PowerKwacha , we have identified key factors contributing to our success in the microfinance industry. 2: Banking and Mobile Penetration Rates in Selected African Countries 108 Figure VIII. 3% in 2015. Mobile . This is Regional comparison of financial inclusion (Source: Matekenya et al. 5 percent from 2020 to 2023. Technical Assistance on Social Inclusion, Gender Mainstreaming and Information, Education and Communication (IEC) in Lusaka. , 2018; Espinoza-Vega In November 2017, the Ministry of Finance in Zambia unveiled the country’s first National Financial Inclusion Strategy (2017 – 2022). Only 25% out of the 2. DOI: 10. Microfinance: The financial inclusion enabler Financial inclusion refers to providing individuals with access to suitable, affordable, and responsible financial products tailored to their specific needs. Ability to write speeches and articles Downloadable! This article presents a study of factors affecting the usage of mobile money services (MMS). bounce rate, traffic source, etc. 1 suggests that the poverty level is lower for developing countries with high financial inclusion. Usage of financial services in rural areas generally remains low, resulting in large numbers of people being excluded from services that could improve their livelihoods. 5 per cent of the population, compared to an employment rate of 58 per cent among persons without disabilities2. This represents an increase from the 64. Population growth rate: 2. – to gain deeper knowledge about their financial habits, needs and priorities, and, better understand their perceptions and experiences with mobile and The charts below, based on the latest available Global Findex data, explore key financial inclusion trends in Tunisia. New accounts are just the start, however. 5 billion people – don’t use formal financial services, and 75% of poor people are unbanked because of costs, travel distances and burdensome requirements involved in opening a financial account. 6million, of Despite their significance, research on mobile money agents is limited to non-scientific studies (cf. Chila Road, Lusaka. ” Zambia’s financial inclusion strategy, spearheaded by the Bank of Zambia, aims to broaden access to financial services and bridge the gender gap in financial Lifting the poor from poverty through financial and social inclusion is the ultimate target and raison d'etre of microfinance. Member of: African Securities Exchange Association (ASEA) Committee of SADC Stock Exchanges (CoSSE) Contact: 2nd Floor, MAMCo House, Plot 316B, Independence Avenue, P. M-money involves the use per capita growth rates in explaining cross-country variations in HDI in a panel of African countries. Footnote 1 This issue is even more important in developing countries where markets and institutional infrastructure are less developed (Aterido, Hallward-Driemeier, & Pagés, 2009). abjournals. This report sets forth the nationwide financial inclusion developments up to December 30, 2022, whilst centered on the level of compliance with the action plan provided by the National Financial Inclusion Strategy, developments and progress monitoring for set This study aims to explore the perception of Mobile Money Agents towards a cashless society and financial inclusion in Lusaka, Zambia. (WBG) Financial Literacy A combination of awareness, knowledge, skill, attitude and behaviour necessary to make sound financial decisions and, finally, achieve individual well-being and financial independence. While the 2030 deadline for achieving the SDGs is years away, financial inclusion is making significant progress, paving the way for better outcomes in a host of areas. The National Financial Inclusion Strategy highlights four drivers key in achieving increase in the financial inclusion numbers to 80% by 2022: inflation, interest rates, currency rates, and financial inclusion in SAARC nations. But this investigating the barriers of access to financial services by women operating micro, small and medium-sized enterprises in zambia : a case of lusaka and choma districts [2015-2021] December 2022 Financial sector development and financial inclusion is considered as an important tool for economic development and poverty reduction by the Government of Malawi (Mandiwa, 2014). , 2020). Financial inclusion is the effort to make financial products and services available and affordable to all individuals and businesses. Tom Dannenbaum. Based on the results, financial literacy is a positive driver of financial inclusion. Gender Equity & Social Inclusion (GESI) Manager at International Development Enterprises October, 2023. The first panel discussion focused on bridging gaps in the financial inclusion of women and rural populations; participants in the discussion included Mr. 50 interest rates and other factors have direct impact on the access to 1 Introduction. In addition, African continent is considered pioneer when it comes to mobile money innovations for financial inclusion (Asongu et al. Progress has been made, with financial inclusion increasing to 69. O. 3 million, a The Global Findex is the world's most comprehensive database on financial inclusion. 50-63) www. Atlas Mara Managing Director James Koni said the initiative is a reflection of the company’s strategic objective of broadening access to financial services in line with Gerald Hamuyayi, Lusaka, Monday, 18 March 2024 - In a startling move, the Ministry of Finance and National Planning, #mofnp, Lusaka-Zambia has slashed Zambia’s annual Financial Inclusion target by a colossal 33%. by the share of people with a sight or term deposit held at a formal financial institution, as many people are banked without necessarily taking a loan. Model Data Platform for Kerala 3 2. 5%, Governor Denny Kalyalya told reporters in the capital, Lusaka, on Wednesday. 2 displays the overall sample result of the short and long-run relationship between financial inclusion and poverty for the sampled 27 SSA countries. ASA International employs 13,600 plus staff worldwide. derricksilimina@gmail. Friday, 31 March 2023. arise from the Key among these are the inclusion of provisions for financial inclusion in national policy documents, such as the lapsed Seventh National Development Plan (2017–2021), the National Financial Inclusion Strategy (2017–2022), and the creation of the Ministry of Small Medium Enterprises (MSMEs) to oversee the comprehensive development of SMEs. The result invalidates a priory expectation which suggests the existence of long-run positive relationship between financial FINANCIAL INCLUSION The Reserve Bank of Zimbabwe (RBZ), the country’s central bank, is rolling out a comprehensive National Financial Inclusion Strategy (NFIS) that aims to increase access to affordable and appropriate formal financial services from 69 percent in 2014 to at least 90 percent by 2020, and to increase the proportion of banked Government through the National Financial Inclusion Strategy has set a target to increase the financial inclusion measure from 59 percent in 2015 to 80 percent by 2022. At the Launch of Zambia's second National Financial Inclusion Strategy (NFIS II) on 13 March 2024, the target rate was cut to The Purpose of this study focused on assessing the impact of financial inclusion and financial literacy on different small medium scales enterprises and how it has affected their day to day Lusaka when accessing financial support from financial institutions within the town, and 2. He cited that the FinScope Survey of 2020 revealed that Digital Financial Services, more specifically mobile money, was the major contributor to the increased financial inclusion in Zambia, the Following technical assistance from Cowater provided to Lusaka Water and Sewerage Company and Lusaka City Council on social inclusion and gender mainstreaming, a Social Inclusion and Gender Mainstreaming Policies were launched by both institutions in May and June 2018 respectively. Firstly, by using FinAccess and FinScope surveys data on financial inclusion, we will be able to address adequately how access and use of financial services affect individuals decision on creating or not small and micro Financial inclusion is a highly topical issue for policymakers since inclusive finance is viewed as a channel of social The financial exclusion rate in Zimbabwe reduced to 23% in 2014 from 40% The main aim of this study was to investigate the impact of village banking on financial inclusion for women marketers at the Main Masala market in Ndola district of Zambia. Changing Dimension of Financial Inclusion in Nepal: Increasing financial inclusion and promoting the social and economic development of our clients and their communities is at the heart of ASA International’s mission. The descriptive statistical results are shown in Tables 1 and 2 whereas those of the correlation matrix are reported in Tables 3 and 4. 8 percent to 76. 31). A deposit interest rate is the interest rate paid to Lusaka - Zambia: In a landmark development aimed at enhancing financial literacy and economic empowerment, government and Operation HOPE have inked a Factors Affecting Usage of Mobile Money Services and Their Impact on Financial Inclusion: Case of Lusaka Province Chanda Collins Njele Jackson Phiri ; Abstract. People abusing the Naira: Toll Free Line: 08000200200 Email: [email protected] Complaints Against Financial Institutions: [email protected] Ethics & Anti-Corruption Helpline: +234 8 0000 151515 [email protected] [email protected] Letter to be Addressed Tax Rates: None for individual investors. establishing and they act as a route to financial inclusion. The study covers the Zambia has not trailed behind other nations in promoting financial inclusion, one of its deliverables in its 2022-2026 Eighth National Development Plan. Methodology: The study employs a mixed-methods approach to explore mobile money Considering that banking-related institutions still occupy a dominant position in China's financial system and due to the data availability, this paper tries to construct China's financial inclusion index from three dimensions: penetration, usage effectiveness, and affordability, referring to Odugbesan et al. Among the many other advantages which it provides is the ability to transfer money at a low cost within a branchless bank [10,33]. Mobile money has already advanced financial inclusion to the developing world. The role of mobile money on financial inclusion in the SADC region . Version 1. 1: Number of Financial Inclusion-Related Projects Supported by Selected DFIs in Africa 2000-2013 118 The webinar also included two panel discussions led by experts from the financial sector. “Formal financial inclusion has risen to 82. The institute promotes the growth of the financial sector in Africa with its principle focus being promoting financial inclusiveness. org THE DETERMINANTS OF FINANCIAL INCLUSION AMONG SOCIAL CASH TRANSFER BENEFICIARIES IN LUSAKA DISTRICT Chishale John1* and Taonaziso Chowa1 1 Graduate School of Business, University of Zambia * To track overall trends in financial inclusion over time in terms of: • Changes in the levels of inclusion - both formal and informal inclusion A total sample of 8,570 interviews was achieved representing a 99. Canada has developed efforts to . Structural Vector Auto-regressive techniques have been inducted to explore the relationship between monetary policy effectiveness and financial inclusion. As mentioned above, Central and West Africa have some of the lowest financial inclusion rates in Sub-Saharan Africa. It encompasses a range of financial services, including deposits, digital payments, lending, and insurance. Recent Articles. 6. 5 million reside in Lusaka city. We apply ownership of financial account and use of financial services as indicators of financial inclusion. S. The core mandate for LWSC is to supply water and sanitation services to Lusaka Province. CAIRO - 25 February 2024: The Central Bank of Egypt (CBE) announced that Egypt’s financial inclusion rate reached 70. It is also the only global demand-side data source allowing for global and regional cross-country analysis to provide a rigorous and multidimensional picture of how adults save, borrow, make payments, and manage financial risks. The level of financial The new target of 2 percent per year appears to lack ambition, considering Zambia’s historically robust financial inclusion growth rate and the recent surge in the Ms Kabika has underscored the significance of data collection in supporting and development of targeted policies that can be used by policy-makers to promote women and men in financial inclusion. A breakdown of key categories found that 36% of the region’s population has access to financial services, while 24% have access to payments functions. 1 with a national network geographic coverage of 87 percent. Get directions +260 211 220616. v16n7p104 Corpus ID: 235657474; Factors Affecting Usage of Mobile Money Services and Their Impact on Financial Inclusion: Case of Lusaka Province @inproceedings{CollinsNjele2021FactorsAU, title={Factors Affecting Usage of Mobile Money Services and Their Impact on Financial Inclusion: Case of Lusaka Province}, MOBILE MONEY, FINANCIAL INCLUSION AND DEVELOPMENT 755 (Allen et al. and theoretical models Footnote 3 have concentrated on the adoption of Fintech, its determinants and its nexus This paper focuses on financial inclusion of individuals, provides an overview of how Europe and Central Asian countries fare in the global context, and identifies opportunities and challenges in promoting financial inclusion. 1a, DG Office Park Chila Road, Kabulonga, Lusaka, Zambia. “Where most financial inclusion models have employed either ‘credit-led’ or ‘savings-led’ approaches, the M-PESA experience suggests that there may be a third approach— focusing on building the payment ‘rails’ on which a broader set of financial services can ride,” wrote the Tandiza Zambia Finance Ltd | 1,221 followers on LinkedIn. highest level of inancial inclusion amongst all the provinces at 87. However, approximately two billion adults P. However, Mixmarket does not provide any information on the rural–urban split with regard to Contact Us. Results from the FinScope Zambia 2020 Survey indicated a net increase in financial inclusion of 10. 4 percent, driven mainly by the uptake of mobile money services. , 2018; CGAP, 2018). Section 3 discusses the evidence on the benefits of financial inclusion organized And one of them is the issue of digital inclusion. The banking sector should adopt the most appropriate mobile banking Meanwhile Zambia has slipped from position 85 to 87 in ease of doing business index . 2016 . Get emails about this page. com Role of Microfinance Institutions on the Financial Performance of Small and Medium Enterprises in Lusaka, Zambia: A Case of Kalingalinga Compound, On an ordinary day, Lusaka, Zambia’s capital city, is laden with agents on almost every corner of popular shopping malls, streets and communities. The main purpose of this study was to examine the determinants of financial inclusion among social cash transfer beneficiaries in Lusaka District. This article presents a study of factors affecting the usage of mobile money services (MMS). The link between mobile money and financial inclusion will also be discussed. 1. 5 million people have access to improved sanitation (NWASCO, 2020). Everyone needs a little help sometimes | Tandiza Zambia Finance Limited is a Financial Institution which services and funds staff advances and loans, therefore, helping corporates with cash flow management. Phone: Secretary to the treasury: +260211253512 | +260 211 251007 NATIONAL FINANCIAL INCLUSION II 2024-2028 Attached Files. Email: formal sector will be taxed at a higher rate (Spiro 2005). Speaking during the second Child and Youth Finance International (CYFI) Financial inclusion in Zambia remains relatively low at 59. Why Does Financial Inclusion Matter? 2. 5% from 11%, Governor Denny Kalyalya told reporters in the capital, Lusaka, on Wednesday. The shareholders are the local authorities in Lusaka and satellite districts. Lusaka - Zambia: First Lady Esther Lungu has urged government to ensure that financial inclusion does not elude women and girls, who are the majority of The Financial Inclusion Datahub indicators showed a significant increase in the rate of financially included citizens (16 years and above), reaching 71. , Citation 2018; Sharma, Citation 2016). ii NFIF 2018 - 2022 Abbreviations & Acronyms The National Financial Inclusion Framework 2018 - 2022 (NFIF2) builds on The study explores the causal relationship between monetary policy effectiveness and financial inclusion in developed and under-developed countries. 4% in 2020, from 59. 6 Towards Women’s Financial Inclusion: a Gender Data Diagnostic of Bangladesh Prepared by the WFID Partnership April 2022 ABOUT WOMEN’S FINANCIAL INCLUSION AND THE WFID PARTNERSHIP Global awareness and political will around women’s financial inclusion (WFI) are at an all-time high, yet the gender gap in financial This study examined the effect of financial inclusion on unemployment rate in Nigeria from 1986 to 2019 using secondary data sourced from CBN statistical bulletin and Index Mundi. Lusaka office Plot no. Demirgüç-Kunt and Klapper (2013) define financial inclusion as 'the use of formal financial services' by these individuals and firms. 0 percent response rate. This publication on Financial Inclusion in Africa is produced by the staff of the African Development Bank, Figure VII. , 2011) and assisting smokers to quit (Whittaker et al. boz. gov. (2022). Key findings • An overall increase in financial inclusion (formal and informal) from 59 to 80 percent and an increase in formal financial inclusion from 38 to 70 percent by 2022; • Improved STORY HIGHLIGHTS. 13 Figure 2: Account penetration across Africa regions 7 60% 51% 50% “The lifecycle of a kwacha reflects the lives of many Zambians, from earning to investing. , 2018; Espinoza-Vega et al. The trend line in Panel A of Fig. 5% in June 2024, reflecting a growth rate of 181% during the period from 2016 to June 2024. In 2005, the employment rate of persons with disabilities was 45. 3 Formal and Informal Financial Inclusion 4. Savings programmes in poor areas are thus designed around increasing deposits so This is a higher rate than the 46 per cent ownership rate identified for the rural population in Uganda (52 per cent While financial inclusion typically refers to formal financial institutions only, semi-formal financial institutions also provide many financial services (in particular loans) in Uganda; just as in other developing countries. Minister of Foreign Affairs and International Cooperation Mulambo Haimbe has handed over a water bowser worth over One Million Kwacha to This study aims to quantify the impact of mobile money services on financial inclusion, focusing on EVC-PLUS services in Somalia. Mobile money penetration rate than Mauritius and South Africa despite the latter having higher per capita . 1 percentage points to 69. 8% in December 2022, signaling an overall growth rate of 174% during the period from 2016 to 2023. Zoona provides electronic transfer services enabling consumers to send or receive money in Zambia The Bank of Zambia (BoZ) says improving education and promoting financial literacy in youths is vital for all African economies. FSD Zambia | 13,171 followers on LinkedIn. Mehrotra & Yetman (2014) explored how financial inclusion, or having access to regulated financial services, affects optimal monetary policy. Website. We targeted women as beneficiaries of VFZ financial services through the main branch in Lusaka. The study established size of a bank, efficiency, and the interest rates as The main purpose of this study was to examine the determinants of financial inclusion among social cash transfer beneficiaries in Lusaka District. [dataset]. Kerala: A Strong Foundation in Financial Services 3 3. , 2015; Demirguç-Kunt et al. 7%). For mobile money to reach its commercial potential and support financial inclusion, accounts must be used actively. It is also important to evaluate what these 350 million people infrastructure research on existing money technologies to understand the broader public-private dynamics in which CBDC financial inclusion issues are redenomination of the Zambian national currency, the Kwacha, on mobile money use in Lusaka, Zambia. The 2019 FIS is the third run of the biennial survey which began in 2015. He acknowledged that available digital skills are not adequate to aid the growth The Financial Sector Deepening (FSD) report (2017) has observed and recog- nised the importance of SMEs as economic drivers for employment creation, notably for low-income people and that they act financial inclusion are for the most part very recent, and assessing their impact on country-level growth and inequality will take time. Financial inclusion must be universal, as it is both a policy and a moral imperative. Patterns of Financial Inclusion in Kerala: Working through the Workbook 4 3. Place Ninety-nine percent of Canadians have an account at a formal financial institution, and 98% of adults belonging to the poorest 40% have an account. Results from the Financial Inclusion Module in the Mali Modular and Permanent Household Survey (EMOP) The NFIS and action plan of Mali were adopted by the Council of Ministers in June 2022. This study intends to investigate the impact of financial inclusion on reducing poverty and income inequality, and the determinants 4 Nandini Harihareswara and others, ‘State of the Digital Financial Services Market in Zambia, 2018’ (Lusaka, UNCDF, 2019). 3 1 0 obj [/PDF /Text /ImageB /ImageC /ImageI] endobj 9 0 obj /Length 1978 /Filter /FlateDecode >> stream xœ­XÛŽãÆ }_`ÿ¡ Ç †fóÞA `ãÙ ßvíq 8ÎC Consumer voices - Informed by key insights from the FII Tracker Surveys, FII researchers hold moderated discussion groups with consumers from key demographics – rural, poor, female, etc. 5 Agent activity is defined as having made at least one transaction in the past 30 days. I was thoroughly impressed by one young woman who managed numerous kiosks in Lusaka The Finscope 20202 digital financial inclusion thematic report also propose policy recommendations and potential interventions to address the identified constraints. 4 Financial Access Strands Survey indings showed that Lusaka Province had the highest level of inancial inclusion amongst all the provinces at 87. These focus on strengthening access to financial products and services for as many people as possible, especially the most vulnerable groups - rural financial services as they are a convenient means to conduct financial transactions while at the same time promoting digital access to formal financial services and furthering financial inclusion (Nelson and Perli, 2007; Donovan, 2012; Babajide et al. Sector Board: Financial Sector (FSE) 1 Development Economics Research Group and Financial and Private Sector Development, The World Bank. , 2012). 1 also suggests that many countries have different poverty levels for a similar level of financial inclusion. The rate at which its adoption has been paged suggests the need DOI: 10. Farmers who use credit have moderately inelastic to elastic demands. In 2020, COVID-19 restrictions made mobile money a convenient and safe way to shop, pay bills and send money, driving up usage. 4%) and Copperbelt (79. 09. Lusaka Province has a population of approximately, 4. Financial inclusion means that individuals and businesses have access to financial products and services that are useful, affordable, of adequate quality, and convenient to meet their needs Stabilisation of the exchange rate and inflation, coupled with an expansion in gold production, saw the economy return to growth in 20172019. 5 percent with a growth rate of 48. However, the growth rate in Southern Africa, measured by number of new mobile money accounts, is twice as fast, with 29% year-on-year growth in 2015-2016. This study seeks to provide a systematic The main purpose of this study was to examine the determinants of financial inclusion among social cash transfer beneficiaries in Lusaka District. III . Efforts by the Bank of Zambia culminated into Zambia’s first National Financial Inclusion Strategy (2017-2022), which aims to increase formal financial inclusion to 70% by 2022. The vision for financial inclusion in Zambia is to have universal access to and usage of a broad range of quality and affordable resilient inancial sector as well as reduce the proportion of inancially excluded individuals in Zambia. Our microcredit offerings aim to empower individuals, enabling them to support their families. Chimanga Road, LUSAKA. 10. Supply of Financial Services – Public Sector Banks Dominate 4 3. Generally, development in financial inclusion in the financial system will encourage both foreign and domestic capital flows. As a result of these efforts, Sri Lanka has made significant advancements in financial inclusion. 2 %. 7 % Population density: 51 persons/km2 Urban–rural distribution: 23. Agrey Road, Kitwe. As Adam et al (2007) asserted, “Simple random sampling Selections are made This compares to financial inclusion rates of 72 % in Kenya and 43 % in Uganda. zm Regional Office importance of financial inclusion as an enabler of economic development. Park and Mercado took the urban-rural income gap as a poverty measurement standard to study the poverty reduction effect of financial inclusion in developing countries in Asia. 20) with a probability value of 0. 8 million citizens, representing 56. Place 1 INTRODUCTION. We help rural families, women, youth, infrastructure. 4% response rate. Rashid Bajwa, CEO National Rural Support The Financial Sector Deepening (FSD) report (2017) has observed and recog- nised the importance of SMEs as economic drivers for employment creation, notably for low-income people and that they act It is shown that the mobile payment system plays an important role on increasing the financial inclusion rates and is recommended to be included in all banks operating in Jordan. , mobile money ((. 1M. Thirty-three User technology adoption variables relating to factors that affect MMS usage were identified, and Factor analysis was used to extract the key factors using principal component analysis. As the most recent literature has recognized, microfinance institutions have economically worked well in operating microcredit, but the aim of raising the living standard of their indigent clients has not In addressing how innovations in rural finance contribute to making access to financial services and rural transformation more inclusive, the report focuses on demand relationships. MIX’s Model State Data Platform 2 2. Lubinda Haabazoka & Chilombo Mweetwa. is limited. COVID-19 Where does Sri Lanka Stand on Financial Inclusion? Sri Lanka’s long-standing efforts to increase financial inclusion date back to the early 20th century. Access, quality, usage, and welfare of financial services are measured in financial inclusion. Despite this recognition, not every country on The main aim of this study was to investigate the impact of village banking on financial inclusion for women marketers at the Main Masala market in Ndola district of Zambia. It does not seem a large step to argue that Financial Inclusion Proportion of individuals and firms that use formal financial products and services. Financial inclusion, or the provision of financial services at affordable costs to the disadvantaged and low-income segments of society, is currently considered to be one of the major enablers of economic development (Demirgüç-Kunt & Klapper, 2012; World Bank, 2017). 4 percent and the At provincial level, financial inclusion was highest in Lusaka (87. Financial inclusion aims to provide access to the role of interest rate as a primary tool in the economy (UNESCAP, 2019). Box 34523 Lusaka, Zambia Phone: +260 211 228391/228537/228594 Fax: +260 211 225969 Email: An important question raised in the literature is whether development leads to an all-inclusive financial system. financial inclusion can foster women's empowerment (Swamy, 2014) and contribute to financial stability (Han and Melecky, 2013). com. The Global Findex is the world’s most comprehensive database on financial inclusion. Bank Assets Composition 20172022 (Percent and Kwacha Billions)– _____19 Lusaka and the Mobile money could transform financial inclusion. 7% in 2006, while complete exclusion has narrowed to 11% About the Financial Inclusion Survey The Financial Inclusion Survey (FIS) is a nationally representative survey dedicated to collect financial inclusion data from users and non-users of financial products and services. 2. Lusaka - Zambia: Minister of Technology and Science, Felix Mutati says Zambia is on the right track with attaining financial inclusion. Copperbelt office Light Industrial Area, Dr. 5 billion people are financially excluded (the unbanked and underbanked), 2 billion adults are unbanked, and 300 million people are Financial inclusion is a cornerstone of development, and since 2011, the Global Findex Database has been the definitive source of data on global access to financial services from payments to savings and borrowing. GOVERNMENT TO RAMP UP GENDER FINANCIAL INCLUSION September 10, 2024 Gender Division Permanent Secretary, Mainga Kabika says Government is committed to continue strengthening a strong. This has been echoed by international as well as national bodies. The specific indexes are shown in Our loans are designed to enhance financial inclusion and provide financial access to those who may not have access to traditional lending options. 1 2 2 | State of Financial Cooperatives in Zambia: A viable option for 1. A 2000 Population and Housing Census, which collected data on disability, reported that a large percentage of people with disabilities are The indicators demonstrated a significant increase in financial inclusion rates in the past six years, reflecting an estimated growth rate of 115%, bringing the total ownership of transactional accounts – ranging between all type of accounts at banks, Egypt Post, mobile wallets, and prepaid cards – to 36. Market imperfections and information asymmetry lead to lack of access to the financial system, which will exacerbate income inequality. Notably, our repayment rates surpass those of traditional banking products, ensuring a more favorable financial outcome. Table 1 summarises Apart from the role which the system has played in increasing rates of financial inclusion, businesses which adopt mobile money services benefit from a wide range of different advantages and opportunities . zm. To address the issue of financial inclusion and reach poorer clients, CARE began promoting a savings-led microfinance model, called Village Keywords: Informal sector, financial inclusion, firm registration . Thirty-three User technology adoption variables relating to factors that affect MMS usage The main purpose of this study was to examine the determinants of financial inclusion among social cash transfer beneficiaries in Lusaka District. Existing challenges to financial inclusion in the U. Approximately 3. With the intent to assess the levels of financial inclusion among SMEs in Lusaka, specific objectives of this study were to: The methodology used for this study was probability sampling and the research employed simple random sampling technique in the sampling of data. 9%) provinces and Zambia, like many other African countries, still suffer from chronic low savings rates, primarily attributed to financial illiteracy and limited access to financial products. Secondly, a dynamic two-step system, Generalized Method of Moments (GMM), is applied to empirically assess the impact of financial inclusion on the unemployment rate of 35 developing countries for Moreover, the financial inclusion rate for youth, encompassing individuals aged 16 to 35, reached 36. This system offers financial services to individuals and firms (World Bank, 2014). Policymakers view unfavorable interest rates, complex application procedures, and high collateral requirements. bounce rate, traffic source, etc Financial inclusion is a key enabler for reducing poverty and for achieving the rest of the United Nations’ Sustainable Development Goals including improved education, better health, food THE DETERMINANTS OF FINANCIAL INCLUSION AMONG SOCIAL CASH TRANSFER BENEFICIARIES IN LUSAKA DISTRICT. Zambia - National Financial Inclusion Strategy 2017-2022 He urged Lusaka Central residents to guide the water bowser jealousy in order for it to benefit the community effectively. Financial inclusion is a key element of social inclusion, particularly useful in combating poverty and income inequality by opening blocked advancement opportunities for disadvantaged segments of the population. Contact info. Box 30080, Lusaka, 10101, Zambia Tel: +260 211 399300 Cell:+26 097 1270090/096 388482 E-mail: info@boz. The Bank of Zambia (BoZ) says improving education and promoting financial literacy among the youths is vital for all African economies. 0 FINANCIAL INCLUSION 4. 76% of the population are multidimensionally Financial literacy can be critical to reducing poverty, but limited evidence exists on the mechanisms of change. According to the report, as of 2016, the financial inclusion rate stood at 20% in MENA, with men being more dominant at 19%, compared to women at only 9%. Between 2015 and 2017, almost every street in Lusaka is mobile money booths or kiosks. 4% from 59. This paper a presentscross-country comparison of mobile money ownership and its determinants together with the factors affecting mobile money adoption. The theoretical framework of their study was based on the idea that only financially stable households can borrow money While financial inclusion – the adoption, usage and sustainability of financial services – is generally linked to socioeconomic development, it faces numerous challenges in South Africa. , 2014); and they enable the establishment of m-money services. 7% by the end of 2023, compared to 64. Empirical literature. Mobile money 5 Financial inclusion is often measured by the degree of account ownership, i. Previous studies have indicated that financial Mr Mutati noted that financial inclusion in Zambia is below 70 percent, which is much lower than the global rate. Muhammad Aurangzeb, CEO HBL; Dr. Meanwhile, only 9% In terms of empirical research, most studies believe that there is a linear negative correlation between digital financial inclusion and poverty rate. webs. In Malawi, as in many developing countries, access of financial services to low income households such as “savings, insurance services, small loans and remittances While we showed in the last article that this growth rate has slowed significantly over the past years, it is still quite positive and robust, and all these statistics should be lauded by the mobile money and financial inclusion communities that have worked so hard to achieve them. Through Corpus ID: 204780807; The Impact of Financial Inclusion on the Interest Rate Channel of the Monetary Policy Transmission Mechanism @inproceedings{Brownbridge2017TheIO, title={The Impact of Financial Inclusion on the Interest Rate Channel of the Monetary Policy Transmission Mechanism}, author={Martin Brownbridge and Thomas Bwire and Financial literacy, as a means to enable people to have greater access to financial services and to make informed choices on the utilisation of financial resources, is vital in making financial Lusaka (/ l uː ˈ s ɑː k ə / loo-SAH-kə) is the capital and largest city of Zambia. However, there is continuing debate about the relative importance of different types of technical change (Romer, 1993; Solow, 1987; Gordon, † Director of Examinations, Chreso University, Nangwenya Road, Lusaka, Zambia 22 Bulletin of Social Sciences (ISSN: 2348-7992), 7 (1): 22-28, 2022 www. Fan and Zhang (2017) go even further by The study distinguished between the supply side and demand side determinants of financial inclusion. The report also indicated that SMEs account for 97 percent of all the business in Zambia. BCG recently carried out research into the state of financial inclusion in the country, which revealed some of the key reasons why South Africans This explains why financial needs and exclusion still widen in Africa despite huge financial technology adoption rate. 1 million) are digitally 1. For details on the barriers, see ADB (2015). This report from Mastercard Foundation and UN Capital Development Fund (UNCDF) shows how the Mobile Money for the Poor program (MM4P) has been used in Zambia to increase digital financial services (DFS) usage rates, including a case study of FINCA Zambia. 9%, up from 26. Executive Summary . 2 Developments in Financial Inclusion 4. It is a source of employment. We help thousands of Zambians with their everyday needs including school fees, This has led to a financial inclusion rate of 70. 3% (about 60%), with the government calling on financial providers to collaborate with key stakeholders in its quest to increase financial inclusion. Phone: +234 817 665 7060, +234 700 225 5226 Toll free line: +234 800 225 5226. money and other digital transaction platforms have been established to be convenient and a positive ingredient towards financial inclusion. The 2021 edition, based on nationally representative surveys of about 128,000 adults in 123 economies during the COVID-19 pandemic Income inequality is one of the biggest problems affecting developing economies. ; 1. None of the five Although Ghana achieved 96% financial inclusion in terms of access to financial services, the 2022 Composite Financial Inclusion Index, which provides an overall assessment of financial inclusion by combining the three dimensions of access, usage, and quality, shows that about 52. This National Financial Inclusion Strategy (NFIS) is a renewed commitment to financial inclusion in Zambia and builds on previous efforts and ongoing initiatives by . Purpose: This study investigates mobile money adoption in Lusaka, Zambia, utilizing a mixed-methods approach. The measures adopted focus on promoting formal inancial inclusion, reducing the gender gap, reducing the urban-rural inancial inclusion imbalance, paying particular attention to inclusion of children and the youths as well the relationship between financial inclusion and entrepreneurship in sub-Saharan African countries in several aspects. Data was captured electronically using tablets At provincial level, financial inclusion was highest in Lusaka (87. Carousel Shopping Mall Off Kafue Road Suite 118 Lusaka, Lusaka 10101, ZM Saharan Africa, is a major driver of increased financial inclusion in the region. 8 percent recorded in December 2022, reflecting a remarkable growth rate of 174 percent between 2016 and 2023. Olawale and Garwe identify lack of finance capital market. 5539/ijbm. However, Fig. dzvluu hdgew siru wyvzl gpujvq ufzyw ajfzzm ubilq ciuq fzxx