Mobile Money Transaction Values Record 12% Increase As ICT Sector Growth Prospect Remains Positive

Mobile money transaction values have increased by 12% to K222.8 billion from K199.5 billion, with transaction volumes rising by 44% to K1.4 billion from K976 million between mid-2023 and mid-2024.

This is according to the 2024 Mid-Year Market Report released by Zambia Information and Communications Technology Authority (ZICTA), which has highlighted significant growth and developments in the Information and Communication Technology (ICT) sector.

The report further shows that active mobile cellular subscriptions reached 21.9 million by mid-2024, representing an increase of 8.9% from 20.0 million in mid-2023, while Internet subscriptions also saw significant growth, rising by 10.2% to 12.6 million from the previous year.

According to the Report, domestic and international call traffic showed modest growth, while data usage decreased slightly by 4%, but overall sector revenues grew to K2.5 billion, with data revenues contributing 46.3% of the total funds.

The development has been attributed to improvements to expanded coverage and growing interest in digital platforms such as mobile money and social media.

The Report further indicates that the number of valid Information and Communication Technology (ICT) licenses grew from 89 to 93, while postal and courier licenses increased by 28% from 88 to 113 over the same period.

And ZICTA Corporate Communications Manager, Hanford Chaaba said this growth is largely attributed to the 55% reduction in the license fees for postal and courier services as well as the overall favourable investment climate in the sector.

Mr. Chaaba added that with regards to infrastructure development during the period under review, ZICTA’s Universal Access and Service Fund (UASF) initiated the construction of 51 new telecommunication towers and the relocation of 40 existing ones, while operators also made significant investment in 5G infrastructure.

“The ICT sector is expected to maintain its growth trajectory in the second half of year, on account of infrastructure investments and government’s digital transformation agenda.

“Some of the key regulatory initiatives that are expected to conclude in the second half of 2024 include the development of a national postcode system and a cost-of-service study for equitable wholesale access arrangements,” Mr. Chaaba asserted.

Mr. Chaaba however said load shedding and exchange rate pressures may impact pricing, adoption, and utilization rates.