The Remittances Landscape in Zambia
This presentation examines how the remittances market can work better for the poor in Zambia. It also examines the scope for formal sector expansion into the remittances market, and concludes that such expansion is possible if it makes remittances more accessible, affordable, reliable, safer and quicker. Expansion would also require a change in consumer perceptions.
Zambia, however, faces challenges to remittances from both demand and supply sides. On the demand side there is a lack of awareness and trust, and the existence of a cash culture. Challenges on the supply side include:
- Making agent relationships work;
- Getting cash management right;
- Achieving interoperability;
- Cost-effective use of technology;
- Overcoming connectivity constraints;
- Bringing down costs.
Any effort to make remittances work for the poor in Zambia would include prioritizing affordability and accessibility challenges, and making a concerted effort to increase consumer awareness. These efforts, if successful, would lead to increased frequency and volumes of remittances.
