The municipality in the capital city for Africa’s second largest copper producer, Zambia have seen an opportunity to shore up revenues from 2,700 mobile money booths that have been operating illegally and are causing sanitation concerns in the city. The Lusaka City Council (LCC) only has sight of 300 booths through the levies they remit. However records from the telecommunications provider show that they are a total of 2,700 booths citywide. From a revenue collection perspective thus accounts for a 10% of the LCC’s collection.
In a statement released today, the Lusaka city council will go all out to collect levies from illegally operating mobile money booths. This it said it will use the help of telecoms service providers for the actual number of registered booths. The municipality will also ensure that booths are placed in proper locations for sanitation purposes as opposed to all over the city.
This follows an uproar by street vendors that have cited that the municipality has paid a blind eye to illegally operating booths in the city.
However, this move has been received with mixed feelings by various stakeholder’s key of which being the Telecoms service providers who have advised the municipality to be considerate in the levy amounts they will charge.
Airtel Money Director James Chona urged the government to consider revising the licensing fees which are very high and deterrent to vendors.
Increasing the period with which the booths should be removed to address the sanitation issues in the city should be considered as a lasting solution is being sought, Acting Communications Manager for Zamtel Changwe Kabwe said.
Information and Communications Technology (ICT) has become a key driver of Zambia’s gross domestic product growth and was second largest contributor to the Q3:18, 5.1% growth number. Mobile money transactions are increasing at a fast pace for citizens as part of financial inclusion.
