Financial Literacy for All

... As Zambia Commemorates World Savings Day with Emphasis on Financial Literacy, Ntini Highlights the Role of Financial Education in Empowering Citizens to Build Secure Financial Futures and Strengthen Zambia’s Economic Foundation

By Francis Maingaila ♥️

Lusaka, Zambia24 – (31-10-2024) - Zambia marked World Savings Day on October 31, 2024, with a strong focus on the essential role of financial literacy in promoting savings habits among citizens.

The theme for this year, “Savings for Everyone: Empowering the Next Generation,” highlights the urgent need to educate youth on fundamental financial principles. Research reveals that only 57% of Zambians understand key financial concepts, leading the government and various NGOs to initiate programs like “Financial Literacy for Youth,” which conducts workshops on budgeting and savings strategies to bridge gaps in financial education.

Despite these efforts, challenges remain, such as limited access to banking in rural areas and dependence on high-interest informal lending, which hinder many Zambians from accumulating savings. Financial education is thus crucial in empowering people to make informed economic decisions.

During the World Savings Day event, Deputy Governor Rheka Mhango of the Bank of Zambia emphasized the importance of financial literacy for economic resilience, stating, “Teaching our children the value of saving is essential. Instilling the habit of saving in young minds will not only improve personal prosperity but also support our nation's financial stability.”

This year’s commemoration is especially meaningful, coinciding with Zambia's 60th independence anniversary and the 16th anniversary of its central banking system. Mhango reported that financial inclusion has increased from 59.3% in 2015 to 69.4% in 2024, thanks to national financial education initiatives.

She also announced the rollout of a national strategy for financial education focused on children, youth, and SMEs, aiming to cultivate a financially literate population by 2030 with universal access to quality, affordable financial services. Plans to include financial education in school curricula are also in the works to better prepare future generations.

Mhango called for stakeholder collaboration to enhance financial literacy and empower individuals to make sound financial choices, highlighting the Bank of Zambia’s commitment to fostering an inclusive financial environment that supports sustainable economic development.

In a related effort, the Pension and Insurance Authority (PIA) is urging Zambians to prioritize financial literacy to strengthen retirement savings. CEO Namakau Ntini stressed that understanding financial concepts is key to economic empowerment. She announced the upcoming Pensions Awareness Week, emphasizing the importance of retirement planning through pensions to ensure long-term financial security. “Planning for retirement is essential for our future,” she said.

Ntini also highlighted the role of the financial services industry in driving economic growth and maintaining Zambia’s economic autonomy. She advocated for integrating financial education into school curricula to impart critical financial knowledge early on. She also encouraged financial service providers to adopt a customer-centric approach, tailoring their products to meet clients' diverse needs and building public trust to enhance sector participation.

The Bankers Association of Zambia (BAZ) also participated in the celebration of World Savings Day, underscoring financial literacy's impact on national development. Speaking at the Radisson Blu Hotel in Lusaka, BAZ Treasurer Maximo Mulenga encouraged citizens to prioritize savings for a secure financial future.

Mulenga emphasized that understanding savings is essential for individual and collective prosperity. He drew on history, noting how the financial practices of Zambia's ancestors contributed to the country’s independence. “Just as our ancestors saved to prepare for independence, we must set aside savings to achieve our financial aspirations today,” he remarked. He urged the youth to control their financial futures early, warning that “earning should not dominate your life later on,” and highlighted that national development relies on the savings and investments of individuals and businesses.

This year’s observance aligns with the government’s financial education policies, including the Second National Strategy for Financial Education and the new National Strategy for Financial Inclusion for 2024-2028, aimed at dismantling barriers to financial equity for all citizens.

Mulenga noted that the banking sector has responded positively to calls for enhanced savings products, with many institutions now offering basic, fee-free savings accounts. He also highlighted the expansion of online and digital banking services that facilitate financial transactions.