The fintech landscape in Zambia shows potential to be a hub in the Southern African region, particularly in digital and mobile money payments and lending.
Although smaller than the South African market, the Zambia fintech market is more digitally advanced than other neighbouring countries including Botswana, Zimbabwe and Namibia.
You should read: Zambia Fintech Ecosystem Open To International Participation
But there is currently a gap in financing and investment options available for fintech startups, that are, post validation but pre-growth in their development.
Fintech firms have achieved product market fit and have an initial customer base with the potential for growth
The sectors are categorised two-fold: The first is too big for smaller options such as grants. The second is too small for larger options from commercial banks or international investors. The missing band is within the range of 200,000 USD and 500,000 USD.
The upside is that as the world of work becomes digital, local talent is now being developed, introducing new players into the global market and others to partake in the local market. This is good for business competition and a diverse base of products and services for clients to choose from.
In Zambia, the concentration has been largely on the payments sector but has shown diversification to digital lending and savings and asset management.
There has been considerable growth which can be attributed to:
Regulators enact reforms encouraging innovation and adopting a ‘watch and learn‘ approach.
- Increased and blended support from ecosystem facilitators.
- Increased investor interest in tech startups based in southern Africa.
- Increased demand for various digital financial services as customers growingly value convenience and efficiency.
