Overview
The Second National Financial Inclusion Strategy (NFIS II, 2024–2028) is Zambia’s renewed commitment to building a robust and inclusive financial ecosystem that ensures equitable access to affordable, quality, and sustainable financial products and services. It builds on the first NFIS (2017–2022), which raised overall financial inclusion from 59.3% in 2015 to 69.4% in 2020, largely due to the growth of mobile money and financial innovations.
The new strategy sets Zambia on a path to achieve 85% overall financial inclusion and 80% formal financial inclusion by 2028, ensuring that no citizen is left behind.
Vision
“An inclusive and robust financial ecosystem that provides accessible, affordable, and sustainable financial products and services to all segments of the population, helping increase resilience, improve financial health, and build confidence.”
Rationale
While significant progress has been made, Zambia still faces gaps:
- Rural–urban disparities (83.8% urban vs. 56.9% rural inclusion).
- Gender and age-based gaps (women, youth, and the elderly remain underserved).
- Limited access for MSMEs, farmers, refugees, and persons with disabilities.
- High borrowing costs, informality, and weak insurance penetration.
- Low levels of financial literacy and consumer protection.
NFIS II directly addresses these gaps while integrating emerging issues such as green finance, climate change resilience, and cybersecurity.
Strategic Objectives
The NFIS II (2024–2028) aims to:
- Expand Access & Usage – universal access to affordable financial services.
- Enhance Quality – ensure products meet diverse customer needs.
- Improve Financial Health – build household and business resilience.
- Strengthen Consumer Protection – fairness, transparency, and accountability.
- Deepen Financial Ecosystem – foster innovation, investment, and sustainable sector growth.
Thematic Areas
1. MSMEs
- MSMEs represent 97% of enterprises and 70% of GDP, but 95% are informal.
- Barriers: high interest rates (25%+), collateral requirements, weak literacy, and high risk perception.
- Measures: MSME Finance Strategy, movable collateral registry, credit info systems, digital lending, venture capital, and tax incentives.
2. Rural Areas
- 60% of Zambians live in rural areas but face low access points, weak infrastructure, fraud risks, and high service costs.
- Strategy: expand agent banking, mobile platforms, community-based access points, and integrate services into schools, clinics, and post offices.
3. Underserved Populations
- Women, youth, elderly, refugees, and persons with disabilities remain excluded or underserved.
- Solutions: gender-responsive products, youth savings/credit schemes, tailored pension & insurance products, refugee financial inclusion, and disability-friendly services.
4. Agriculture
- Agriculture employs nearly half the population but only 11% of small farmers access formal credit.
- Interventions: warehouse receipt financing, weather index insurance (WII) improvements, digital payment systems for farmers, and stronger value chain financing.
5. Environmental, Social & Governance (ESG)
- Climate shocks (droughts, floods) affect 65%+ of households.
- Focus: green bonds, green loans, climate insurance, and ESG-aligned financial products.
6. Digital Financial Services & Infrastructure
- Mobile money usage surged from 14% in 2015 to 58% in 2020.
- Actions: expand digital payments, National Financial Switch interoperability, cybersecurity measures, and fintech innovation.
Cross-Cutting Priorities
- Consumer Protection & Financial Literacy – strengthen laws, redress mechanisms, and national financial education campaigns.
- Monitoring & Research – introduce M&E frameworks, baseline surveys, and disaggregated data systems to track progress.
Implementation & Governance
- Lead Institution: Ministry of Finance and National Planning.
- Steering Committee: provides oversight.
- Implementation Committee & Working Groups: public-private coordination.
- Partners: Bank of Zambia, SEC, PIA, FSDZ, UNCDF, ZICTA, CSOs, and private sector actors.
- Financing: government budget, donor support (e.g., SECO, World Bank), private sector contributions.
Expected Outcomes
By 2028, Zambia expects to achieve:
- 85% overall financial inclusion and 80% formal inclusion.
- Increased access for MSMEs, rural populations, and underserved groups.
- Wider use of green finance and climate-resilient products.
- A stronger, more competitive digital financial ecosystem.
- Greater public trust in financial institutions through consumer protection and transparency
