Zambia’s banking sector is relatively healthy, though the economy faces a looming threat from rising debt, dwindling foreign reserves and the ongoing weakness of the kwacha. In the face of such challenges, banks are trimming costs by reducing their reliance on ATMs and the traditional physical branch networks, and turning increasingly to local agents to extend the reach of banking services.
Since 2015, the central bank, Bank of Zambia, has put in place a regulatory framework for agency banking to help financial institutions take their services to previously unbanked or underbanked parts of the country. Under the model, banks use local agents to carry out small-scale banking services, including loan applications, deposits, withdrawals and bill payments. Many agents operate from small booths beside the road, while others operate from established small businesses such as hardware stores, post offices and petrol stations.
