Airtel Zambia and ZICB Partner to Enhance SME Business Environment

Airtel Zambia PLC and Zambia Industrial Commercial Bank (ZICB) have entered a strategic partnership to bolster the business environment for Small and Medium Enterprises (SMEs) in Zambia. This collaboration, formalized through a Memorandum of Understanding (MoU), aims to enhance Internet accessibility for ZICB’s SME customers.

The MoU Agreement

Under the MoU, Airtel will provide complimentary advanced 4G and 5G Internet service devices (routers) to SMEs banking with ZICB. However, these customers must enroll in the bank’s Internet banking platform and commit to monthly data bundles for these devices. The initiative is designed to ensure reliable and high-speed Internet connectivity for SME clients using Airtel’s cutting-edge devices.

This partnership comes at a pivotal time as Zambia’s Internet penetration rate stands at 31.2% as of early 2024, with projections to rise to 43.44% by the end of the year. To further expand Internet access, the Zambian government and private sector are working on constructing 520 communication towers nationwide, aiming for 96% phone and Internet coverage by late 2025 or early 2026. In February 2024, the government announced plans to build 60 4G mobile towers to enhance Internet coverage in rural areas, alongside establishing digital centres for free Internet services.

Zambia Industrial Commercial Bank (ZICB)

ZICB has been at the forefront of fostering financial inclusion and supporting SMEs in Zambia. Dr Louis Kabula , ZICB’s Acting CEO, highlighted that the bank’s digital banking infrastructure is robust, promoting capital management efficiency and customer convenience. He reiterated the bank’s dedication to lowering business costs in Zambia, particularly for SMEs, which manage the largest volume of low-margin commercial transactions in the country.

ZICB’s comprehensive digital banking services are designed to streamline operations for businesses, enabling them to focus on growth and innovation. The bank’s efforts in supporting SMEs are critical to the economic development of Zambia, providing them with the necessary tools and resources to thrive in a competitive market.

Airtel Zambia

Airtel Zambia, a subsidiary of Airtel Africa , is a leading telecommunications provider in Zambia, known for its wide network coverage and innovative services. Lindiwe Banda , Airtel Business Director, expressed that the partnership will facilitate easy access to Internet banking services for SMEs banking with ZICB, whether from their business locations or homes. Banda noted that SMEs will receive Airtel devices at no cost, only requiring a commitment to monthly data bundles. This will empower businesses by simplifying online invoicing and transaction record-keeping.

Airtel Zambia has been instrumental in advancing digital connectivity in the country. With a focus on expanding its 4G and 5G networks, Airtel aims to provide reliable and high-speed Internet services to both urban and rural areas. Zambia is a significant market for Airtel Africa, especially for its rapidly growing Airtel Money product, which plans to go public in 2025. Airtel aims to leverage its first-mover advantages, key infrastructure, and distribution networks in its strong markets, including Zambia.