By Cecilia Chiluba/Zambia/Lusaka
Bank of Zambia (BoZ) has reaffirmed its commitment to advancing digital transformation in the country’s financial sector, emphasizing interoperability, innovation, and efficiency within the payments ecosystem.
Speaking at a financial industry event, Chief Operating Officer Dr. Isaac Mhanga said the central bank continues to support initiatives such as the national financial switch, partnerships with fintechs and payment service providers, and the Bank of Zambia regulatory sandbox.
“These measures are not just an end in themselves, but serve as a foundation for broader transformation,” Dr. Mhanga noted.
He highlighted strong growth in digital financial services, noting that the value of mobile payments increased by more than 800 percent over five years to 2020, rising from about US$49 million to approximately US$486 million.
“Similarly, over the same period, the number of back-to-mobile money wallets grew by over 170%, reaching US$13 million by the end of 2020,” he added.
Dr. Mhanga said financial inclusion also improved significantly, increasing from 59 percent in 2015 to 69 percent, largely driven by the expansion of digital financial services.
He stated that innovations such as secure digital and cross-border payment solutions are helping expand e-commerce, online trade, and digital skills development.
However, Dr. Mhanga cautioned that increased digital adoption also brings risks, particularly cyber threats during periods of high transaction volumes.
He urged financial institutions, service providers, and consumers to remain vigilant, strengthen fraud prevention measures, and prioritize consumer protection to ensure sustainable and secure digital transformation.
