A SURVEY conducted by the United Nations Capital Development Fund (UNCDF) in partnership with Financial Sector Deepening Zambia (FSDZ) and InterMedia has revealed that fear of inability to repay loans gets in the way of about 48 percent of Zambians borrowing money.
Speaking at a media briefing in Lusaka, InterMedia director of research Colleen Learch said one of the survey findings revealed that 48 percent of the population in Lusaka and Copperbelt had not borrowed money in the past few years.
“Fear of inability to repay a loan gets in the way of Zambians borrowing money. Close to half (48%) that have not borrowed money in the past year say they would worry about being able to make good on the loan,” she said.
Ms Learch said most Zambians were now turning to using Digital Financial Services (DFS) for fear of contracting loans which they found difficult to repay.
She however said Zambia was a land for DFS because 63 percent of Zambians currently had savings both formal and informal.
“There are a lot of co-financial services that are very desirable within consumers and keen interest is that 59.3 percent have some form of financial services and 25 percent of the population have bank accounts,” she said.
UNCDF country technical specialist Nandini Harihareswara said one of the most ‘‘stirring findings’’ of the research was the genuine desire of Zambians to use financial services.
Ms Harihareswara said the survey showed that 86 percent of Zambians were ready to learn new technology.
“There is raw interest in the mobile money value proposition. Two thirds of Zambians who know about mobile money want to use it to pay utility bills for goods and services or for savings,” she said.