Zambia’s payment ecosystem was characterized by limited interoperability and fragmented payment service provider (PSP) networks. Historically, both bank and non-bank PSPs operated within siloed environments, relying on bilateral agreements and hindering seamless digital transactions between different types of PSPs. This fragmented landscape resulted in underutilization of digital retail payment methods and restricted the flow of funds through national payment systems.

In response to these challenges, the Bank of Zambia (BoZ) introduced a National Payment Strategy in 2013, aiming to establish a secure and cost-effective electronic retail payment platform. This initiative seeks to modernize Zambia’s payment infrastructure, fostering financial inclusion and driving economic growth. The BoZ pursues monetary tightening measures to address cash dominance and stabilize the foreign exchange market. By November 2023, the BoZ had implemented multiple rate hikes, raising its rate to 11% and increasing the ratio of deposits held by commercial banks to alleviate pressure on the foreign exchange market.