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Mobile money transfer requires direct supervision of BoZ

Filed under: Business,Latest News,Special Comments |
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By Kelvin Chisanga

A bad economic reset is truly taking place in both business and investment globally, and Zambia is not spared at all.

However, allow me to literate by stating that today’s market dynamics require businesses to indulge and engaged into both creative and innovative thoughts, which indeed should work contrary to the case that we have witnessed in the recent past of ZOONA.

As we all know that Zoona was once a precursor for mobile money transfers in Zambia before anyone in the local market, and currently the mobile transfer market has broaden to an extent that the mobile money transfer, a financial market subsector is handling a monthly transactions volume of approximately in total proceeds to around K8 billion.

Though, the market trends is predictable where a huge volume of transactions is only seen towards each calendar month end and begin of each month up to 10th.

Its equally unfortunate that the booths are also making outlook of town areas pretty ugly as proper interventions on infrastructure may be required.

In April this year at the peak of COVID-19, the Central Bank embarked on the role of championing financial inclusion, and digital finance services was a key highlight on the table.

This saw mobile transfer transactions skyrocketed to about K7.8 billion in the month of April alone.

I feel strongly that the Bank of Zambia should assume direct supervision of this new emerging financial subsector in the economy.

Mobile money transfer should be on BOZ’s radar as opposed to provide oversight through the technology and telecommunication regulator ZICTA.

Even though this aspect of double entry supervision between the two regulatory bodies may raise some conflicting issues, I feel regulations should be well spelt out to avoid porous monitoring of financial resources by ZICTA.

*The author is a Social Economist

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