BoZ, FSDZ sign MoU for financial inclusion
By BUUMBA CHIMBULU A MEMORANDUM of Understanding (MoU) to support the Bank of Zambia (BoZ) in assisting citizens move from cash payments to digital transactions over time has been signed between the central bank and the Financial Sector Deepening Zambia (FSDZ).
The MoU is also meant to support the BoZ increase financial inclusion in fourteen areas such as supporting and development of a financial market system that works better for poor communities and households, smallholder farmers, and micro, small and medium-sized enterprises.
It is also meant to assist in the development of digital financial services and financial technology.
Speaking at the signing ceremony in Lusaka yesterday, BoZ governor, Denny Kalyalya, said the MoU would be useful in expanding formal financial inclusion by 16 percent over the course of the cooperation.
Dr. Kalyalya said financial inclusion was one of the central bank’s strategic focus areas.
“The environment is ripe for innovative ideas, including digital financial services which have proved to be a platform to drive financial inclusion,” he said.
Dr Kalyalya said he understood the challenges Zambians faced in accessing financial services.
And speaking at the event, FSDZ board chairman, Caleb Fundanga, said the institution was positive that the MoU achieve several millstone.
Dr. Fundanga is also a former Bank of Zambia governor.
“By signing this Memorandum of Understanding today, FSDZ hopes to support the Bank of Zambia in meeting its multiple commitments for full financial inclusion under the Maya Declaration, in the Bank of Zambia’s Strategic Plan 20162019, and in the upcoming National Financial Inclusion Strategy,” he said.
Dr. Fundanga said the relationship between the central bank and FSDZ was one that had been cemented over time.
“A notable collaboration was the 2015 Finscope Survey, which measured financial inclusion. Financially included Zambians rose to 59.3 percent in 2015 from 37.3 percent in 2009. We made very good progress, but we still have a way to go,” Dr Fundanga said.