Despite Financial Strain, Zambians Show Resilience and Hope, TransUnion Survey Finds

Despite economic pressures, Zambian consumers remain hopeful about their financial futures, according to TransUnion’s latest Consumer Pulse Survey for the second quarter of 2025. The study, which explores household budgets, spending, debt, and attitudes towards credit, highlights both resilience and financial caution among Zambians.

The survey, conducted between 5–25 May 2025 with 325 adults across Zambia, found that while 34% of respondents reported a rise in household income over the past three months, 49% said their finances were worse than expected. Nonetheless, 79% of respondents expressed optimism for the next 12 months, with Gen Z leading the way at 81%.

Financial setbacks were evident: 22% of households experienced job losses, 21% reported business closures or lost orders, and 20% faced wage reductions. Conversely, 24% of households started a new business, 14% received wage increases, and 13% secured new employment. Many consumers adapted by saving more, reducing discretionary spending, and paying down debt faster, with 38% accelerating debt repayments and 25% increasing emergency savings.

Inflation, housing prices, and employment were the top household financial concerns, prompting 55% of respondents to cut back on discretionary spending, 44% to reduce digital services, and 41% to cancel subscriptions or memberships. Close to half (49%) anticipated further reductions in discretionary spending over the next three months, while 46% expected to scale back on large purchases such as appliances or vehicles.

Credit access remains a critical issue. While 94% of respondents acknowledged the importance of credit for achieving financial goals, only 42% felt they had sufficient access. Although 45% planned to apply for new or refinance existing credit in the next year, more than half (54%) abandoned applications, citing high borrowing costs (36%) and insufficient impact on repayments (30%). Rising interest rates also influenced consumer behaviour, with 56% indicating it would affect future credit applications.

The survey also revealed low levels of credit monitoring. While 71% viewed monitoring as extremely or very important, only 49% checked their credit monthly, and 30% reported not monitoring at all, up from the previous year. Among those who monitored their credit, the main motivations were improving scores, ensuring accuracy, and fraud protection.

Fraud and cybersecurity concerns were widespread. More than three-quarters (76%) reported being targeted by email, online, phone, or text scams in the last three months, with 9% falling victim. High-income consumers were particularly affected, with scams including money/gift card fraud (60%) and smishing (51%). Identity theft, credit card fraud, and data breaches were the top concerns, and 92% of respondents expressed caution about sharing personal information.

TransUnion’s Consumer Pulse Survey demonstrates the dual realities of financial strain and adaptability in Zambia. Consumers are actively managing their finances through cautious spending, selective credit usage, and enhanced awareness of cybersecurity risks, highlighting both opportunities and challenges for financial inclusion and economic empowerment.

The survey included adults aged 18 and above across Zambia, using online research panels across desktop, mobile, and tablet devices. Responses were balanced to reflect demographics of age, gender, income, and region. Generations were defined as Gen Z (18–28), Millennials (29–44), Gen X (45–60), and Baby Boomers (61+). Findings are unweighted and statistically significant at a 95% confidence level with a ±5.4 percentage point margin of error.