The Digital Economy at a Crossroads

Thu Sep 03 2026 /Mpelembe Media/ — Zambia’s developmental trajectory currently faces a paradoxical challenge: the imperative to widen the domestic tax base versus the mandate to achieve universal digital financial inclusion. As the primary engine for the nation’s 2027 digital economy vision, mobile money provides the “last mile” infrastructure necessary to transition the informal sector into the formal economy. However, the introduction of a dedicated transaction levy creates a friction point that threatens to bifurcate the ecosystem. While fiscal authorities view the levy as a mechanism for equity, it risks introducing a regressive cost layer that could stall the momentum of Zambia’s most successful financial inclusion tool.Strategic Dilemma:  Policymakers must reconcile the immediate need for revenue with the long-term macroeconomic benefits of digital liquidity. The core risk is that aggressive fiscal extraction at this nascent stage may drive users back to cash, thereby eroding the Bank of Zambia’s visibility into the economy and increasing the cost of cash management.The current tension is a byproduct of Zambia’s rapid evolution from fragmented banking silos to a sophisticated, shared payment infrastructure. Continue reading →