Savings Groups: A Catalyst for Financial Inclusion and Economic Resilience in Zambia
Savings Groups (SGs) hold significant promise as a catalyst for financial inclusion and economic resilience in Zambia, according to a new report released by the Financial Sector Deepening (FSD) Zambia in collaboration with SaveNet and the Ministry of Community Development.
The service group census, conducted across Eastern, Copperbelt, and Central provinces, provides a comprehensive analysis of savings groups and their impact on financial behavior and opportunities for members.
Speaking during the launch of the Geospatial Savings Group Census Report, FSD Zambia Chief Executive Officer Lilian Chilongo Kangwa revealed invaluable insights from the study.
“The recent census program has disclosed key findings on financial behavior and opportunities within savings group members across the three pilot provinces,” said Ms. Kangwa.
She emphasized the importance of leveraging these findings to drive further concerted efforts that can unlock the full potential of SGs for financial inclusion and economic growth.
Ms. Kangwa highlighted that savings groups have emerged as powerful tools for fostering financial inclusion, especially in areas where access to formal financial services remains limited.
“These groups have demonstrated remarkable resilience by providing marginalized communities with a reliable avenue for savings and essential financial knowledge, particularly benefiting women,” she noted.
However, despite the strides made by savings groups, Ms. Kangwa pointed out that the data also revealed significant gaps in financial literacy, with low insurance penetration and limited knowledge of mobile banking among group members.
The report also found that SGs have played a crucial role in facilitating economic activities in rural areas, contributing to improved livelihoods and community development.
