Alex Mwaba Chishya, Lusaka, 25th March, 2024—Last week was Financial Literacy week in Zambia. Yet, except for a gallant effort to raise awareness by a handful of industry players, the week went by barely noticed, another missed opportunity to understand the financial world better.
Every day, we face decisions about our finances, some leading to success and others not quite hitting the mark. This underlines the importance of financial literacy for everyone globally. It is about making the best decisions with the resources available. This knowledge is crucial, not just for personal financial stability but for the nation’s growth as a whole. With the economy experiencing fluctuations, a strong understanding of financial management can greatly aid in navigating these changes. It enables individuals to handle debt more effectively, save for future needs, and understand the wide range of financial products and services. Essentially, being financially perceptive is foundational for a secure and prosperous life in Zambia.
Currently, a significant portion of our population lacks basic financial management skills. However, this presents an excellent opportunity for Zambia to step towards a future where economic stability and empowerment are the norm.
Consider this; currently nearly, 60% of Zambians are unbanked. This has a direct impact on the economy. Turning this situation around could lead to more individuals saving for their futures and an increase in capital within the banking system, which could further stimulate economic growth significantly.
So, why should this matter to everyone, including our government and local business owners? Financial literacy goes beyond simple budgeting or saving a small amount of money; it is about initiating a series of informed financial decisions that could significantly transform our economy. Introducing financial education into school curricula and employing technology to reach those without bank accounts could mark a dramatic change in our economic configuration.
Imagine the effects of a 10% increase in the number of people banking. This is not merely about higher figures in bank accounts; it could represent genuine progress for our economy. An increase in savings leads to more capital available for loans and investments, fostering growth and creating job opportunities across various sectors. Moreover, Zambia’s entrepreneurial spirit is formidable. With adequate financial literacy, local entrepreneurs can transform their ideas into successful businesses, further diversifying and strengthening the economy.
Achieving a nation where everyone is knowledgeable about financial matters is indeed possible. The benefits could be substantial, aiding in growth of the economy and ensuring a more solid financial base for all. The government, businesses, and every individual need to work together; everyone has a role to play, and collaboration is essential. In time, with a focused pursuit of championing financial education, we can begin to see smart money management become a common practice in every Zambian household.
Financial literacy has a significant role to play in realising Zambia’s economic potential. It benefits individuals and the economy alike. As we observe this exciting period in Zambia’s journey towards economic empowerment, the opportunities for growth, innovation, and stability are endless. It all starts with equipping each person with the financial knowledge required for success. Zambia stands on the brink of a significant breakthrough.