Zambia is a large country of about 17 million people, with about 57% of its population living in the rural areas. The country also has a mobile network coverage of 87%, however some people in the country who do not have access to products and services that are delivered through mobile networks.

Services such as pay-as-you-go solar, digital loans, insurance, and school fees payments are often not easily accessible to rural populations. This prevents them from leveraging their resources and skills and participating in their local economy.

To support the government of Zambia in its efforts to improve rural livelihoods, UN Capital Development Fund (UNCDF) embarked on an innovative agent project to test the best way to deliver digital financial services (DFS) in rural Zambia. The aim was to use an agent network offering a variety of digital finance products. Facilitating access to these services and products is invaluable for rural development as it sparks growth and expansion of rural communities, economies and improves livelihoods.

Earlier this year, UNCDF published a request for applications and selected Kazang Zambia, a provider with a platform on which all financial and prepaid product suppliers can distribute their products, and Mobicom, a business that facilitates the distribution of digital finance through its agent platform. Both businesses were strong applicants because i) they demonstrated that they could scale services to several provinces in Zambia, ii) they offered a variety of services on their platforms and iii) their business models would be sustainable for the agents rolling out the services.

Sustainability for agents is important because it means agents will continue earning an income from multiple services they support, ensuring that the same services will be easily available and accessible through the agent network when customers need them.

Kazang will increase the presence of its point-of-sale machines that enable customers to purchase pre-paid services such as electricity, airtime or satellite television; Kazang agents will also distribute PAYgo solar. Mobicom will provide a shared agent banking platform to enable customers to conduct their transactions more easily. Both partners will onboard more agents to expand the reach of these essential digital services.

The goal is for Kazang and Mobicom to expand their agent network to 1000 agents by implementing 50% of their activities in rural and peri-urban areas. With this expanded agent network, UNCDF aims to reach 45,000 customers (60% female and 40% youth) and to deepen financial inclusion in remote areas.

“UNCDF believes in leaving no one behind in the digital era, and in that vein, we are excited to partner with Kazang and Mobicom to reach the last mile by testing and scaling their agent models. The various range of services offered on their platforms is the only way digital financial services can be made available to all Zambians everywhere,” said UNCDF Country Lead, Killy Kanjo.

UNCDF will provide a grant and technical assistance to Kazang and Mobicom as they implement their activities in five provinces. Both companies are in the early stages of the six-month project.

“Mobicom is proud to partner with UNCDF. We aim to extend financial services at an ‘arm’s length’ of people living in rural communities who, for a long time, have been marginalised with little or no access to financial inclusion organs. It is also important to us that we can create job opportunities as agents for those in rural areas, helping improve livelihoods. This is important,” said Pascal Angilla, Group CEO.

Digital financial services are becoming increasingly important as Zambia, like other countries, grapples with the spread and impact of COVID-19. By using digital services, people can reduce their exposure and still continue to transact and manage their businesses.