Govt pledges to digitalize payments

Mukuli Chikuba

Government has pledged to ensure there is greater transparency and efficiency in government related payments and collections.

Ministry of Finance Permanent Secretary for Economic Management and Finance, Mukuli Chikuba said this in Lusaka today during the official launch of the government payments diagnosis in Zambia, a joint programme of the United Nations Capital Development Fund (UNCDF) and Financial Sector Deepening Zambia (FSDZ).

Mr. Chikuba says digitizing government payments has the potential to substantially reduce costs, increase efficiency and transparency, help build the financial ecosystem, and broaden meaningful awareness of digital payments.

He explains that when governments shift their social, salary, and procurement payments as well as taxation and licensing receipts to electronic form, it creates a foundation upon which the private sector and person-to-person payments, such as international and domestic remittances, can accrue benefits to Zambian citizens, the Government and Private Sector.

Mr Chikuba says governments across the world are taking a bigger role in promoting the shift from cash and paper-based payment systems to digital payments.

He further states that digital payments can help boost economic growth and deliver wider benefits, including improving people’s access to financial services in developing countries.