Disparities in Zambia’s Mobile Money Services, Economist Urges Reform
In a recent analysis by economic expert Kelvin Chisanga, serious disparities have been uncovered within Zambia’s mobile money services, shedding light on both challenges and opportunities within the sector.
Mr. Chisanga, known for his astute observations on Zambia’s economic landscape, highlighted several key issues affecting the efficiency and inclusivity of mobile money services across the country.
Since the advent of mobile phones in Zambia, the market has undergone significant transformations, with the emergence of various telecommunications providers offering mobile money transfer services.
However, despite the initial promise of financial inclusion, Mr. Chisanga notes that the current models are facing hurdles in sustaining sufficient funds for transactions, particularly at the retail level.
According to Mr. Chisanga, the traditional banking sector is facing unprecedented technological disruptions, leading to a scramble for space in the digital realm. Banks are now integrating internet and mobile banking systems, aiming to adapt to evolving consumer preferences and technological advancements.
In Zambia’s mobile money landscape, disparities in service provision have become evident, with certain regions experiencing dominance from specific providers. For instance, MTN’s mobile money service has a strong presence in the Copperbelt province but performs poorly in Lusaka and other parts of the country. One of the major issues with MTN’s service is its payout model in distribution channels, which has drawn criticism from dealers citing inadequate float movement compared to competitors like Airtel.
Mr. Chisanga also highlights the monthly surge in demand for mobile money services, particularly towards the end of the calendar month, driven by critical transactions and agency banking activities such as ZANACO Express. Airtel’s mobile money service stands out for its liquidity and daily business activities, especially in Lusaka province, attributed to its flexible subscriber base and efficient transaction processing.
Despite challenges, Zamtel’s mobile money service has shown promise, particularly in the North Western and Western provinces. With Zambia’s total phone subscriber database reaching approximately 15 million active users, Mr. Chisanga emphasizes the need for reform and collaboration within the mobile money sector to address disparities and enhance financial inclusion for all Zambians.
As the country’s economy continues to evolve, Mr. Chisanga urges stakeholders to prioritize innovative solutions and regulatory frameworks that promote equitable access to mobile money services, ensuring sustainable development and prosperity for all citizens.
