CONSUMERS MANAGING IN THE FACE OF UNCERTAINTY – STEPHENSON  

By Scoop Reporter

ZAMBIAN consumers are taking proactive steps in managing their finances in the face of economic uncertainty, says CEO of TransUnion Zambia, Mildred Stephenson.

Ms. Stephenson said this follows the struggle of some consumers to make ends meet, with the ongoing high cost of living continuing to take its toll on household finances.

According to the latest Consumer Pulse Study by TransUnion, 35 percent of consumers expect to be unable to pay at least one of their current bills and loans in full.

The survey also revealed that Zambian households were facing significant financial challenges like small business closures, job losses, and rising inflation, with 33 percent of households reporting an increase in income and 29 percent reporting a drop in their income over the past three months.

Despite that, she indicated that 79 percent of consumers expected their incomes to improve over the next 12 months, although such was three percentage points lower than a year ago.

She said among those consumers, 29 percent plan to borrow from a friend or family member to help pay some of their current bills and loans.

 She said that as a result, many consumers shifted their spending behaviour in the past quarter, including cutting back on discretionary spending at 61 percent and cancelling or reducing digital services at 50 percent.

“While consumers are cautiously optimistic about their future incomes, elevated inflation and tight lending conditions will continue to weigh on household consumption in 2024,” said Ms   Stephenson.