BoZ Calls for Enhanced Financial Literacy, Consumer Protection Awareness Campaigns
Bank of Zambia has urged financial sector regulators and service providers to implement financial literacy and consumer protection awareness campaigns across various provinces.
Officiating at the 2024 World Savings Day commemoration and Financial Literacy Awards, Bank Governor, Dr. Denny Kalyalya noted that these initiatives can promote the safe use of digital products, encourage saving in licensed financial institutions, and deter participation in fraudulent investment schemes, such as money circulation programs.
Dr. Kalyalya, who was represented by Deputy Governor-Administration, Rekha Mhango, stated that a well-informed and protected financial consumer is essential for increasing the uptake and utilization of financial services and products.
He revealed that the number of financial service accounts designed for children has increased from just 3 in early 2013 to over 20 today, owing to ongoing financial literacy campaigns.
“Equipping individuals with financial knowledge and skills is crucial for enabling them to make informed and sound decisions about their finances, thus supporting their overall financial well-being.”
“Recent developments, including the rise of digitalization and the expansion of sustainable financial products, have significant implications for personal finance. These developments underscore the urgent need to enhance financial literacy, empowering individuals to make wise choices about personal financial management,” Dr. Kalyalya noted.
He further said the World Savings Day campaign offers the financial sector a chance to encourage citizens to adopt a culture of saving, regardless of the amount.
“Let us teach our children, youth, and ourselves as adults, the value of setting aside resources for the future. By doing so, we not only enhance our own well-being but also contribute to the economic prosperity of our nation,” he added.
Speaking at the same event, Pensions and Insurance Authority (PIA) Registrar and Chief Executive Officer, Namakau Ntini emphasized the need to address the barriers hindering full participation in the financial sector.
Mrs. Ntini challenged all financial service providers to embrace a customer-centric approach, tailoring their offerings to meet customer needs effectively.
“By cultivating public trust and confidence in the formal financial sector, we pave the way for enhanced participation and prosperity,” Mrs. Ntini stated.
She also announced the Pensions industry will be commemorating the 2024 Pensions Awareness Week next week, emphasizing that saving for retirement through a pension is one of the longest saving products that helps to ensure financial security in the golden years.
“I therefore, invite you all to join us as we seek to raise awareness on the importance of planning for retirement through a pension,” she said.
Meanwhile, Securities and Exchange Commission (SEC) Chief Executive Officer, Philip Chitalu congratulated all the winners of this year’s Financial Literacy Awards and emphasized the need to continue making efforts towards advancing financial literacy in the country.
And Bankers Association of Zambia (BAZ) Chairperson, Lowani Chibesakunda, who was represented by Association Treasurer, Maximo Mulenga, urged young people to gain control of their money early in life as the lack of it will control them in their part of life.
Ms. Chibesakunda noted the banking sector offers basic savings products that attract minimal and no charges and this is helping to scale -up financial inclusion levels for underserved and unserved populations.
Every October, Zambia joins the international community in celebrating World Savings Day, emphasizing the importance of savings for individuals and the 2024 theme is “Shared Prosperity.”
