ZACA Warns Proposed Mobile Money Levy Increase Could Hurt Low-Income Users

Low-income consumers and small businesses could face higher transaction costs under the government’s proposed increase in mobile money levies from 2027, the Zambia Consumer Association (ZACA) has warned.

The proposed charges range from 64 ngwee for transactions between K0 and K150 to K16 for transactions in the highest band.

ZACA Executive Secretary Juba Sakala acknowledged that the measure is intended to raise domestic revenue but said it could place additional pressure on people who depend on mobile money for everyday business.

He said small-scale traders, marketeers and informal business operators often work with limited capital and narrow profit margins, making them particularly vulnerable to higher transaction costs.

“Mobile money is not a luxury but an essential financial service,” Mr Sakala said, noting that many users rely on their earnings to support their families and gradually grow their businesses.

He warned that increased levies could reduce already limited incomes, raise the cost of doing business and deepen financial difficulties for vulnerable households.

ZACA has therefore urged the government to reconsider the proposed increase or adopt a lower, more affordable and progressive structure that shields small transactions and low-income users.