Since entering the Zambian market in 2011, Cellulant has shifted its focus from banking solutions to building a robust payments ecosystem. With its pivot, the company is betting on Zambia’s growing digital economy and positioning itself as a key player in the fintech landscape.
Shifting Gears to Digital Payments
Initially, Cellulant concentrated on mobile banking platforms and merchant aggregation, working with 15 of Zambia’s 18 banks. However, by 2017, the company identified new opportunities in digital payments. These included a fragmented mobile payments market, the predominance of peer-to-peer transactions, and limited merchant acquisition efforts.This market analysis prompted Cellulant to pivot, prioritizing payment collections over banking services. Since then, the company has seen consistent month-on-month growth, underpinned by Zambia’s potential as an emerging tech hub.
Zambia’s Payments Future
According to the company’s leadership, Zambia’s payments sector is on the brink of transformation. The rise of e-commerce, coupled with increasing investor interest in tech startups, signals opportunities for innovation and growth. Additionally, collaboration between the government and private sector is accelerating digitization, creating policies that promote digital payment adoption in public services.Future growth areas include disbursements, inward remittances, and enabling financial rails to integrate these transactions seamlessly into the economy.
Challenges in the Ecosystem
Zambian tech startups face hurdles such as limited access to affordable capital, insufficient incubation for scaling innovative ideas, and a fragmented ecosystem with mistrust among stakeholders. Many startups struggle to secure financing due to high borrowing costs from local banks, while promising ideas often fail to progress due to a lack of structured mentorship and resources.Furthermore, the absence of a cohesive ecosystem hampers collaboration, as larger players view smaller entrants with skepticism. This limits opportunities for partnerships that could drive collective growth.
Proposed Solutions for Growth
To overcome these challenges, industry experts suggest creating funding avenues that provide startups with affordable working capital. Positioning Zambia as a destination for international investment could also attract cheaper foreign capital to help scale innovative solutions.Building trust and collaboration within the ecosystem is another critical step. Structured engagements between banks, mobile operators, and fintech startups can foster cooperation and clarity on each player’s role in the ecosystem. Additionally, public-private partnerships can establish incubation hubs where startups can test and scale their ideas.These combined efforts could pave the way for a more dynamic tech environment in Zambia, with digital payments leading the charge toward economic growth and financial inclusion.
