The Landscape of Remittances in Zambia
This study assesses trends, opportunities and challenges of the remittances landscape in Zambia. It aims to trigger debate and suggest areas for future research by sharing these findings with industry, regulators and other interested parties.Money transfers are pervasive in Zambia. The formal payment system, however, does not have sufficient reach to service remittance needs. This, combined with lack of consumer awareness and distrust of the formal sector, has led to a proliferation of informal channels. Report findings include:
- Workers' remittances is one of the drivers of the money transfer market, but not the only one;
- Need for non-account based transactions and payments is evident throughout the economy;
- Consumer awareness is key to formal uptake;
- Distance and convenience remain major considerations;
- People might find the official process intimidating.
The report states that there is abundant demand for transactions and money transfers, as well as plentiful supply. The main challenge to making the remittance market work for the poor lies in reaching the poor where they live, and pricing dedicated services appropriately. The report outlines recommendations for the industry, government and FinMark Trust.
