An Assessment of the Growth and Sustainability of Community Village Banking in the Zambian Financial Markets

In Zambia, village banking services aim to extend financial access to marginalized communities outside the formal financial sector. However, concerns persist regarding their growth and sustainability due to challenges like limited capital access, inadequate infrastructure, and regulatory gaps. This study assesses the growth and sustainability of community village banking in Zambia from 2006 to 2023, aiming to identify obstacles and propose solutions. Using a documentary research design, qualitative methods, and purposive sampling, data was collected from various sources including published articles, policy papers, and national documents. The SWOT analysis approach was employed to analyze strengths, weaknesses, opportunities, and threats associated with village banking. The findings reveal a transformative journey from experimental stages to mainstream financial service delivery, marked by increased institutionalization, innovation, and outreach. Village banking emerged as a beacon of hope, contributing to poverty reduction, gender equality, and inclusive growth. However, challenges like limited capital access, inadequate infrastructure, and regulatory gaps persist, threatening sustainability. Recommendations include strengthening regulatory frameworks, expanding financial literacy programs, fostering gender equality, enhancing capital access, and embracing technological integration. Implementation of these recommendations can enhance the effectiveness, resilience, and sustainability of community village banking in Zambia, contributing to broader economic and social development goals.