by Sipilisiwe Ncube on 8 Dec 2019by Sipilisiwe Ncube on 6 Dec 2019by Mirriam Chabala on 6 Dec 2019by Natasha Sakala on 6 Dec 2019
by Stuart Lisulo on 9 Dec 2019by Stuart Lisulo on 5 Dec 2019by Natasha Sakala on 4 Dec 2019by Natasha Sakala on 28 Nov 2019
by Zondiwe Mbewe on 7 Dec 2019by Zondiwe Mbewe on 6 Dec 2019by Zondiwe Mbewe on 6 Dec 2019by Zondiwe Mbewe on 6 Dec 2019
- Goal Diggers
by Abraham Kalito on 9 Dec 2019by Abraham Kalito on 8 Dec 2019by Abraham Kalito on 6 Dec 2019by Abraham Kalito on 5 Dec 2019
by Diggers Editor on 9 Dec 2019by Diggers Editor on 6 Dec 2019by Diggers Editor on 5 Dec 2019by Diggers Editor on 3 Dec 2019
- Guest Diggers
by Julius Kapembwa (PhD) on 5 Dec 2019by Rueben Lifuka on 4 Dec 2019by Sishuwa Sishuwa on 22 Nov 2019by Dr Chishimba Mubanga, MSc on 22 Nov 2019
- Editor's Choice
by Diggers Correspondent on 24 May 2019by Diggers Reporter on 4 Mar 2019by Andyford Mayele Banda on 29 Jan 2019by Davies Mwila on 22 Jan 2019
by Diggers Correspondent on 9 Dec 2019by Sampa Kabwela on 23 Nov 2019by Natasha Sakala on 8 Nov 2019by Felix Kashweka on 4 Oct 2019
Village saving groups most inclusive mode of banking – FSDZ surveyBy Natasha Sakala on 13 Nov 2019
Savings groups and “Chilimbas” are the most inclusive mode of banking in Zambia, a new Financial Sector Deepening Zambia (FSDZ) Report has revealed.
The study titled: “Savings groups: the gateway to financial inclusion in Zambia”, recommended that efforts to make formal financial services more user-friendly to those who have less education should be promoted.
There are around 15,700 savings groups in Zambia, popularly referred to as village banking savings groups, with cumulative savings amounting to K53.1 million as at the end of last year, according to SaveNet data.
“The aim of this study was to identify the financial service (or services) that are most inclusive, i.e., the service (s) for which use is least dependent on household assets, education and being a man. Applying the simple protocol set out above leads us to conclude that savings groups and chilimba’s are the most inclusive. This, combined with the fact that savings groups offer their members more flexibility and potentially greater efficiency gains, indicates that investing in savings group interventions should be the preferred strategy for policymakers interested in promoting financial inclusion,” the report read.
“In addition, our analysis reveals that, even after accounting for household assets and income source, all financial services other than chilimba’s and savings groups are used less by less educated people. Finally, our analysis reveals that, even after accounting for household assets, income source and education, women make less use of all financial services other than chilimba’s and savings groups. Here, further research is needed into why the gender gaps exists and whether and what innovations in financial product design and access can close the gap.”
The report added that there was need to support further research on financial inclusion for women.
“Based on these findings, we recommend that policymakers: consider savings groups to be the appropriate entry point to significantly expand financial inclusion; promote efforts to make bank accounts and other formal financial services more user-friendly to those who have less education; support further research on financial inclusion for women and innovations in financial product design and access, especially for women,” read the report.
And speaking during the launch of the briefing paper, Monday, FSDZ chief executive officer Betty Wilkinson noted that savings groups could continue to be an entry point to financial inclusion for Zambians living in remote areas.
“FSD Zambia has contributed to scale by supporting the creation and growth of 7,900 savings groups with over 129,000 members saving on either a weekly or monthly basis, amounting to millions of kwacha. With a potential 2 million more Zambians to reach, it is safe to say that savings groups can continue to be an entry point to financial inclusion for those in remote areas. With savings groups recognized as one of the key pillars of rural financial inclusion, let us collectively keep encouraging and educating our people to use the services that savings groups offer in the right way to change their lives for the better. We recognize the importance of savings groups in our economy and communities, as such, implore our various partners and stakeholders to grow savings groups and make them even more efficient and accessible so that the social and economic impact that these groups have in the various communities can be realized,” she said.
She further noted that FSDZ was honored to have been part of the development of the National Strategy on Financial education, which was recently passed by Cabinet.
“We are pleased that considerable work with the Ministry of General Education and iSchool on the financial education curriculum grades 1 to 12 will move to pilot testing and validation early next year. We anticipate that our engagement with Zazu on financial education through simple cell phones will expand beyond the 1.1 million Zambians already reached. Engagement in out-of-school youth financial literacy is also growing fast. FSD Zambia provision of financial education through traditional leaders, savings groups and other community organizations will grow. We look forward to expansion of media and digital means of financial education as appropriate for a client-centric orientation,” said Wilkinson.
About Natasha Sakala
Natasha Sakala draws inspiration from people who stand up for what is right. She is very versatile and likes to bring out issues as they are.
Email: natasha [at] diggers [dot] news
- There’s need to change use of encroached game parks to allow human development – Chitotela - 6 Dec 2019
- Fuel prices have to go up due to weak kwacha – Nkhuwa - 4 Dec 2019
- CEC’s power supply to KCM reduces to 160MW - 4 Dec 2019
- There’s still hope of stopping Bill 10 – Mwitwa - 3 Dec 2019
- KCM hasn’t paid for power for a year, laments CEC - 28 Nov 2019
- Govt's attacks against Foote diplomatic gobbledegook - Mpombo (1,360 view)
- Wina describes UPND’s Lupososhi ward election victory as ‘small fish’ (1,091 view)
- Lungu, Tasila in Mukula cartel (989 views)
- Age just a number for prolific Chamanga (897 views)
- PF blames minister for Lupososhi loss, demands his resignation (778 views)
- A bitter sweet message from the U.S Ambassador on gay crimes, hypocrisy
- Kapata to sue Diggers for publishing Mukula smuggling cartel
- I'll retain power in 2021 because I'm humble - Lungu
- PF blames minister for Lupososhi loss, demands his resignation
- Stop dividing us, stay out of politics, Lungu tells clergy
Subscribe For News In Email
- December 2019
- November 2019
- October 2019
- September 2019
- August 2019
- July 2019
- June 2019
- May 2019
- April 2019
- March 2019
- February 2019
- January 2019
- December 2018
- November 2018
- October 2018
- September 2018
- August 2018
- July 2018
- June 2018
- May 2018
- April 2018
- March 2018
- February 2018
- January 2018
- December 2017
- November 2017
- October 2017
- September 2017
- August 2017
- July 2017
- June 2017
- May 2017
- April 2017
- March 2017
- February 2017
- January 2017
- December 2016
- November 2016
- October 2016
The News Diggers
Deputy News Editor
Plot No. Lus/9812/649-MC8
off Alex Chola Road
P.O. Box 32147
Telephone or WhatsApp:
diggers [at] diggers [dot] news
editor [at] diggers [dot] news
Send this to a friend