Three Takeaways from the New NFIS and NFSDP

At the beginning of the month, the Ministry of Finance launched its new National Financial Inclusion Strategy (NFIS) and National Financial Sector Development Policy (NFSDP). I was grateful to have been in attendance when the Minister of Finance, Honourable Felix Mutati, and the Governor of the Bank of Zambia, Dr. Denny Kalyalaya, launched these crucial documents. Here are my takeaways:

National Financial Inclusion Strategy - NFIS

The strategy is structured with clear and measurable targets of increased financial inclusion that take account of the shortfalls in access for rural households and women and seek to address these over the next five years. The strategy is based on key enablers of financial infrastructure and cell phone service infrastructure ( laws, regulations, and supervision) and engagement between public and private sector. All of these are essential to financial inclusion. The strategy stresses the expansion of digital financial services, innovation with client-centric products, and improved financial capacity and consumer protection. These are crucial elements to offering people a wide range of financial services that meet their needs as well creating a feedback system if they have any issues with their services.

National Financial Sector Development Policy - NFSDP

The policy is holistic and creates space for key building blocks: the national financial inclusion strategy, the rural finance policy and strategy, and the revision and updating of the national financial education strategy. The policy stresses a market-based system which is fair, inclusive, and innovative, including particularly expansion of digital financial services. The policy focuses on a better structure: modernized laws, stronger regulations, and enhanced supervision. In the NFIS, the Ministry of Finance set a target of 80% of the population financially included by 2022. According to FinScope, as of 2015, Zambia’s financial inclusion rate stood at 59%. It is exciting to see the government setting such high targets and moving financial inclusion to the top of their agenda. We look forward to working with the Ministry of Finance, Bank of Zambia and other key market stakeholders over the next five years to reach this target.