×

Message

Failed loading XML...


Telecom

Zambia considers taxing mobile money transactions starting next year

Zambia considers taxing mobile money transactions starting next year
Wednesday, 04 October 2023 19:21

Digital payment services are growing rapidly in Zambia. In 2022, mobile money transactions reached a value of 170 billion kwachas in the country, compared with 95 billion kwachas in 2021.

The Zambian government is considering introducing a tax on mobile money transactions. The proposal was made last week by Situmbeko Musokotwane, Minister of Finance and National Planning, during the presentation of the 2024 national budget.

The proposed tax applies only to person-to-person transactions. It varies from 8 ngwee ($0.0038) to 1.80 kwacha ($0.085), depending on the value of the transaction.

According to Felix Mutati, Minister of Technology and Science, Mobile Money transactions in Zambia reached 170 billion kwachas ($8 billion) in 2022, against 95 billion kwachas in 2021.

With the new tax, the government wants to "ensure that everyone contributes something, however small, to the provision of public services." However, industry players believe the measure will have adverse effects, particularly on the informal sector.

"The introduction of a tax on mobile money will mean that people will pay more. For those on lower incomes, every ngwee counts, a lot of explanation is needed," Postle Jumbe, president of the Alliance of Zambia Informal Economy Association (AZIEA), told local press.

In recent years, Zambia has been experimenting accelerated digital transformation marked by the rapid adoption of digital payment solutions. 

Isaac K. Kassouwi

On the same topic
Reliable, high-capacity international connectivity is crucial for driving economic growth, enabling digital services, and promoting regional...
• Morocco to build 500 MW green-powered data center in Dakhla to boost cloud infrastructure• Part of Digital Morocco 2030, aiming for data sovereignty and...
• Cameroon and Chad plan to launch free mobile roaming by August 11, following a joint coordination meeting in N'Djamena• The move revives a stalled CEMAC...
By investing in shared, open-access fibre networks, Vodacom and Maziv can help drive more affordable retail broadband pricing and reduce barriers for...
Most Read
01

• Investors seem to keep focusing on yields, which are high for the moment• New Leadership might see...

Afreximbank Bonds Retain Market Confidence Despite Moody’s Downgrade
02

• Inflation within the West African Economic and Monetary Union (UEMOA) fell to a two-year low of 0....

UEMOA: Inflation Drops to 0.6% in May, Driven by Lower Food Prices
03

• Qatar Airways and Kenya Airways establish strategic agreement, introducing a third daily flight be...

Qatar Airways Expands its Network in Africa, Building Presence in Kigali, Johannesburg, and Nairobi
04

• EY is preparing to leave Francophone Sub-Saharan Africa by 2026• The exit could unlock $500 m...

EY’s Exit Creates $1bn Opportunity in Francophone Africa Consulting Market
05

• Interbank volumes rose 18.7% in May, while rates declined across the market• The BCEAO cut its mai...

WAEMU Sees Easing Conditions on Regional Interbank Market
Enter your email to receive our newsletter

Ecofin Agency provides daily coverage of nine key African economic sectors: public management, finance, telecoms, agribusiness, mining, energy, transport, communication, and education.
It also designs and manages specialized media, both online and print, for African institutions and publishers.

SALES & ADVERTISING

regie@agenceecofin.com 
Tél: +41 22 301 96 11 
Mob: +41 78 699 13 72
Média kit : Download

EDITORIAL
redaction@agenceecofin.com

More information
Team
Publisher

ECOFIN AGENCY

Mediamania Sarl
Rue du Léman, 6
1201 Geneva
Switzerland

 

Ecofin Agency is a sector-focused economic news agency, founded in December 2010. Its web platform was launched in June 2011. ©Mediamania.

 
 

Please publish modules in offcanvas position.