Cultural differences make Zimbabwe and Zambia two very different countries at face value but when it comes to payments there are some key similarities between the two Southern African Nations.
According to the Bank of Zambia’s (BOZ) Annual National Payments System report for 2021, banking channels hold the majority of the value of transitions. The most significant chunk of the value of transactions in Zambia was through what the Bank of Zambia calls SIPS or Systematically Important Payment Systems which is made up of:
- EFT – Electronic Funds Transfer (what in Zimbabwe is called ZIPIT)
- ZIPSS – Zambia Interbank Payment and Settlement System (an equivalent of RTGS)
- CICS – Cheque Image Clearing System
As per the Bank of Zambia’s 2021 NPS report, SIPS had 77% of the value of transactions. This amounted to K1,595,695 million in 2021 from K1,140,502 million in 2020. The breakdown for all the SIPS components is as follows:
| Payment Stream | 2021 | 2020 | Change (%) | Proportion (%) |
|---|---|---|---|---|
| CICS | 8,758 | 9,295 | -5.8% | 0.4% |
| EFT | 98,789 | 78,017 | 26.6% | 4.8% |
| ZIPSS | 1,488,147 | 1,053,189 | 41.3% | 71.8% |
| SIPS Totals | 1,595,695 | 1,140,502 | 39.9% | 77.0% |
| ATMs | 57,687 | 50,113 | 15.1% | 2.8% |
| Mobile | 169,402 | 105,815 | 60.1% | 8.2% |
| PoS | 62,085 | 35,235 | 76.2% | 3.0% |
| Remittances | 186,581 | 117,102 | 59.3% | 9.0% |
| NSIPS Total | 475,756 | 308,264 | 54.3% | 23.0% |
| Grand Total | 2,071,451 | 1,448,767 | 43% | 100% |
As for the other counters, the Mobile Money value of transactions grew by 60.1% to account for 8.2% of the NPS Value of Transactions. Remittances, likewise, figures saw an increase of 59.3% to register a 9% share of the Zambian National Payments System Value of Transactions.
Overall, this shows that banking channels are king when it comes to the Value of Transactions but the story changes when we look at the Volume of Transactions.
Zambia NPS Volume of Transactions
When it comes to transaction volumes the complexion completely changes.
Although having the greatest proportion of Value of Transactions, SIPS has the lowest when it comes to transaction Volumes (0.6%). This could suggest that there are low-value but high-volume payments being made through the Zambian NPS by way of mobile money and remittances. While larger volumes through corporates and business entities are happening through the SIPS.
Across the Zambezi
In Zimbabwe, the case is a familiar one when it comes to Values and Value of transactions according to the Q4, 2021 RBZ NPS Report.
The Value of Transactions is dominated by banking channels with RTGS coming out with 62.48%. The category named “Internet” is according to the Reserve Bank of Zimbabwe (RBZ) transactions that are done through mobile banking apps and web portals. This includes transactions like ZIPIT (the EFT equivalent in Zambia), internal bank transfers and payments of utilities and other services.
So in essence, 24.15% of the value of Internet transactions can be added to 65.48% registered by RTGS to give Zimbabwean banks an 89.63% share of transaction values on the Zimbabwean National Payments System.
Mobile money and other counters are relatively low in comparison to banking channels in terms of the value of transactions but when we look at volumes the tables turn:
Mobile Money has the largest share of volumes with a mammoth 82.19% of transaction volumes on the Zimbabwean National Payments System according to the RBZ’s NPS Report for Q4, 2021.
Much like in Zambia, this suggests that high-value transactions are fewer and go through bank channels. While low-value transactions are more frequent and mobile money dominates.
Read – EcoCash transaction limits: impact on the National Payments System in numbers
Zimbabwe Vs Zambia National Payments System Values and Volumes
The value of Payments Zimbabwe vs Zambia
The volume of Payments Zimbabwe vs Zambia
Cover Image Credit: Logistics Update Africa
