TransUnion Zambia today released findings from its Q1 2026 Consumer Pulse Survey, revealing a Zambian market in transition. Income confidence has climbed notably year-on-year, yet many households continue to navigate cost-of-living pressure, constrained credit access and a high level of digital fraud exposure.

Four in ten Zambians (40%) reported earning more than they did a year ago¹, up from 34% in 2025. Looking ahead, 84% of consumers expect their income to grow in the next 12 months, a modest gain on last year (82%) that points to a broadly optimistic outlook for the Zambian economy.

"Zambian consumers are demonstrating a more intentional and disciplined approach to managing their finances, moving beyond short-term, reactive adjustments toward sustained financial planning and budgeting. This reflects a growing focus on affordability and long-term financial resilience," said Mildred Stephenson, chief executive officer of TransUnion Zambia.

Household Incomes Improved, but Pressure Remains

Household income trends over the past three months present a more balanced picture than in 2025. Alongside the rise in consumers reporting higher earnings, the share of consumers reporting no change in income fell from 38% to 31%, and the number of consumers reporting a decline in income remained stable (29% in both years), pointing to early signs of stabilisation after a sustained period of economic pressure.

Even so, many households continue to actively manage their financial commitments. More than a third (37%) of consumers expect they won't be able to pay at least one bill or loan in full. To manage these commitments, 45% have taken on temporary or gig-based work, 42% are paying only partial amounts they can afford, 29% are borrowing from friends or family and 26% are drawing on savings. Discipline on spending remains firm: 54% cut discretionary spending in the past three months, with 68% reducing dining out, 46% scaling back travel and 41% spending less on entertainment.

"The continued reliance on these coping mechanisms highlights ongoing liquidity pressure and demonstrates that many households continue to deploy multiple strategies to manage changing financial conditions, even as their confidence in longer-term earnings strengthens," Stephenson said.

Zambians Choose Credit to Support Essential Spending

Demand for credit remains resilient. Overall, 41% of consumers plan to apply for new credit or refinance existing credit within the next year, with younger adults the most likely to do so. Among those intending to borrow, interest concentrates on essentials that support mobility and opportunity: 45% plan to seek a personal loan, 19% student financing and 13% car finance.

Converting that intent into approved credit remains difficult. More than half (55%) of consumers who considered applying ultimately decided not to proceed, citing the high cost of credit (30%), concerns their income may reduce approval (29%) and doubts that refinancing would deliver meaningful savings (21%). These barriers are largely unchanged from 2025.

"Collectively, these findings reveal a continued disconnect between the importance consumers place on access to credit and their confidence in navigating the credit system. While demand remains strong, concerns about affordability, approval likelihood and the perceived benefits of refinancing continue to discourage many Zambians from moving forward," Stephenson noted.

Digital Fraud Remains a Concern

As more Zambians transact online, fraud exposure remains high. More than eight in ten (81%) consumers reported being targeted by at least one digital fraud attempt in the three months preceding the survey, in line with 2025. Money and gift card scams, smishing, phishing and vishing ranked among the most common threats, alongside fraudulent seller activity on online platforms.

In response to cybersecurity concerns, 67% updated their passwords and 42% added stronger login protections such as multifactor authentication in the 60 days before the survey. However, 17% took no action at all: of that group, 71% were unsure what steps to take and 21% felt overwhelmed by the volume of cybersecurity information available.

"This mix of high engagement related to personal identity protection on one end and hesitation on the other reflects the ongoing need for simple, accessible tools and education. As threats become more sophisticated, financial institutions have an important role to play in helping consumers understand the steps they can take to protect themselves from fraud, while continuing to strengthen overall digital security across the ecosystem," Stephenson said.

¹ The 2025 Consumer Pulse Survey was conducted in Q2 2025, while the 2026 survey was conducted in Q1 of this year.

Rwanda has established itself as one of Africa’s leading digital economies, underpinned by strong economic growth, widespread mobile money adoption and increasing participation in formal financial services. As the country enters its next phase of development, the challenge is no longer simply extending access but ensuring that inclusion translates into meaningful economic opportunity for households, entrepreneurs and businesses.

New findings from TransUnion’s Q1 2026 Consumer Pulse Study (CPS) indicate that Rwandan consumers remain optimistic about their financial futures while highlighting a growing need for broader access to credit and lending products that can help them move from financial participation to financial empowerment.

Nearly four in five consumers (76%) expect their income to increase over the next 12 months, while a further 16% expect it to remain unchanged. Together, these findings suggest a population that remains confident in Rwanda's economic trajectory while taking a pragmatic approach to managing ongoing financial pressures.

At the same time, household budgets remain under strain. Half of respondents (50%) said they expect to be unable to pay at least one current bill or loan in full, with many planning to manage these challenges through partial payments, savings or temporary additional work. Rather than pointing to declining confidence, these behaviours reflect resilience and disciplined financial decision-making as consumers adapt to changing economic conditions.

More than a third of consumers (34%) also reported reducing discretionary spending in recent months, while others continued to prioritise spending on digital services and selected lifestyle categories. These trends suggest that many households are managing carefully while remaining engaged in Rwanda’s increasingly digital economy.

“Rwanda has made remarkable progress in expanding financial inclusion and digital participation,” said Didier Mutabazi, Chief Executive Officer of TransUnion Rwanda. “Financial inclusion is not a single milestone. It is a journey. The next step is helping more consumers move from basic financial access to the products and opportunities that support entrepreneurship, asset ownership and long-term financial resilience.”

Expanding Access to Credit Can Unlock Greater Economic Opportunity

Access to credit and lending products remain one of the clearest indicators of consumers’ financial aspirations. The CPS data highlights an opportunity to expand access to credit and lending products that support consumer financial goals. While nearly all consumers (98%) say credit is important to achieving their financial goals, only 42% believe they have sufficient access to the products they need. This gap suggests that although demand is strong, barriers such as affordability, eligibility, limited financials visibility and product suitability continue to hinder access.

Personal loans and student loans emerged among the most sought-after products, highlighting demand for solutions that support both immediate needs and long-term advancement.

The findings suggest Rwanda’s financial inclusion journey is entering a new phase. While participation in formal financial services continues to expand, consumers are signalling a need for broader access to the financial products that support long-term economic advancement. Financial inclusion is no longer simply about access to transactional services or short-term credit. Increasingly, it is about enabling consumers and entrepreneurs to access the financing, visibility and trust needed to invest in education, grow businesses, acquire assets and participate more fully in Rwanda’s economic future.

“Our latest report highlights that consumers understand the value of credit and are actively looking for ways to improve their financial futures,” said Mutabazi. “This creates a new agenda for the ecosystem, one focused on improving credit visibility, strengthening digital trust, enabling smarter decision-making and building the partnerships required to scale inclusive growth responsibly.”

Trust Remains Essential to Financial Inclusion

The report highlights the importance of building a trusted financial ecosystem where consumers can engage confidently, access services more easily and participate fully in the opportunities created by Rwanda's digital economy.

“Trust is a fundamental part of a healthy and inclusive financial ecosystem,” said Mutabazi. “As digital participation grows, consumers, businesses and institutions must continue working together to strengthen confidence, reduce friction and ensure people can engage safely in the digital economy.”

The findings reinforce Rwanda’s progress as a leading digital economy while highlighting the next step in its financial inclusion journey. The opportunity is clear but will require the full financial ecosystem to help more consumers advance from access to financial capability and economic participation. By driving broader use of trusted data, responsible lending and the expansion of products that support scalable growth across business and the everyday citizen – the Rwanda financial inclusion trajectory is possible.

The TransUnion Rwanda Consumer Pulse Survey of 259 adults aged 18 years and older was conducted between 10 February and 9 March 2026.

More than seven in ten Namibians (71%) said they were feeling optimistic about their household finances for the coming year, with 78% expecting their income to increase in the next 12 months. One in four (26%) reported an increase in income in the preceding three months, while 41% said that their finances were better than planned. Gen Z consumers (aged 18-28) were the most hopeful group, with 76% feeling optimistic about their finances, and 81% expecting their incomes to increase in the next year.

These were some of the findings of the TransUnion Consumer Pulse Study for Q2 2025* which also found that Namibian households had faced some financial setbacks, with 30% or respondents reporting that they had lost jobs – five percentage points more than the same quarter in 2024. Additionally, 17% said a household business had closed or lost orders and 16% experienced wage or salary reductions.

On the upside, 16% indicated someone in their household had started a new business, 15% reported salary increases and 11% started a new job. In terms of financial behaviour, 25% of consumers paid down debt faster and 23% saved more in an emergency fund.

When it comes to macroeconomic influences on their financial wellbeing, Namibian consumers listed inflation, job security and house prices as their leading concerns.

Overall, 75% of consumers listed inflation as one of their top three financial concerns followed by housing prices (rent or mortgage) at 64% and job losses at 55%. Possibly due to these concerns, 53% of consumers indicated they cut back on discretionary spending (dining out, travel, entertainment) in the past three months, 28% cancelled subscriptions or memberships, and 27% cancelled or reduced digital services (e.g., wireless, cable TV, internet).

In Q2 2025, 44% of respondents expect to be unable to pay their current bills and loans in full, a five-percentage-point reduction from the previous period. Among them, 35% planned to take on gig work, 33% said they would borrow from friends or family and 32% would make partial payments. These responses reflect not only ongoing financial pressure but also a strong sense of adaptability and resourcefulness among consumers.

“Namibian consumers are demonstrating remarkable resilience and optimism in the face of economic challenges, while prioritising essential expenses and actively trimming non-essential costs to maintain financial stability,” said Lara Enslin, CEO of TransUnion Namibia. “As access to credit and digital trust become increasingly vital, it’s clear that empowering consumers with the right tools and protections will be key to sustaining this resilience.”

Namibians Believe Credit Can Help Achieve Their Financial Goals

In Q2 2025, 95% of respondents considered access to credit important, yet only 33% felt they had sufficient access. Looking ahead, 45% planned to apply for new or refinance existing credit within the next year. Among these, 33% planned to apply for a new student loan, 31% intended to apply for a new personal loan, and 23% planned to refinance a personal loan — marking an eight-percentage-point increase from Q2 2024.

Nearly half (46%) of respondents considered applying for credit or refinancing but ultimately chose not to proceed. The main reasons were concerns about being rejected due to income or employment status (30%) or credit histories (28%), while 29% abandoned their applications simply because they no longer needed the credit. Rising interest rates also shaped consumer credit behaviour. A significant 48% of respondents said interest rate hikes had a major influence on their decisions to apply for credit — while another 31% reported moderate impact. These trends underscore a growing sensitivity to economic conditions.

“Consumers’ sentiment about access to credit highlights a gap between the importance of credit access and consumer confidence, pointing to a need for more inclusive lending,” said Enslin.

Namibians Concerned About Fraud

Namibia was affected by various fraud attempts. The survey revealed 47% of users cited identity theft as a major barrier to adopting new digital technologies — while 45% expressed concerns about cybersecurity threats.

Credit card/payment fraud (59%), stolen identity (54%) and data breaches (31%) were the cyber threats that most concerned surveyed consumers. In turn, identity attack methods that concerned consumers the most included falling victim to fake social media profiles (61%), personal information exposed in data breaches (59%), email phishing (45%) and viruses or malware (41%). 

In Q2 2025, 57% of consumers reported being targeted by fraud attempts through online platforms, emails, phone calls or text messages but did not fall victim; 8% of respondents said they were both targeted and scammed. Middle-income consumers were particularly affected as 66% reported fraud attempts. Overall, the most common types of scams included money/gift card scams (37%), vishing (fraudulent phone calls meant to trick users into revealing data) at 33%, phishing (fraudulent emails, websites, social posts, QR codes, etc. meant to steal data) at 29%, and smishing (fraudulent text messages meant to trick users into revealing data) at 25%.

“Namibian consumers continue to display resilience following the country’s economic contraction in Q1 2025,” said Enslin. “Managing their credit effectively and taking steps to prevent fraud will see Namibians benefit from the country’s anticipated growth.”

Consumers can find out more about their credit report from TransUnion here.

^{*This online survey of 291 adults was conducted in Namibia from May 5–25, 2025 by TransUnion in partnership with third-party research provider, Dynata. Adults 18 years and older residing in Namibia were surveyed using an online research panel method across a combination of desktop, mobile and tablet devices.}

Information and insights company TransUnion Botswana has published its Q2 2025 Consumer Pulse Study* which showed that only one third (33%) of Batswana respondents reported a growth in their income in the last three months, while 49% said their finances were worse than planned. One quarter (25%) were affected by job losses – nine percentage points more than said the same thing one year ago.

Despite this, 77% remained optimistic about their future finances, with Gen Z consumers (aged 18-28) being the most hopeful group with 83% feeling optimistic about their future. Nearly nine in 10 (87%) of this cohort expected their incomes to increase in the next year – 10 percentage points more than those who said the same a year ago.

Consumers’ most significant financial concerns are inflation, job security and housing prices. Nearly eight in 10 (78%) put inflation as one of their top three financial concerns followed by job losses and housing prices (rent or mortgage) each at 55%.

Likely in response to these concerns, 53% of consumers indicated they cut back on discretionary spending (dining out, travel, entertainment) in the past three months, 34% cancelled subscriptions or memberships and 30% cancelled or reduced digital services (e.g., wireless, cable TV, internet).

Looking forward to the next three months, 57% of surveyed consumers expected to reduce their discretionary spending – significantly more than the proportion of respondents who expected discretionary spending to remain the same (17%) or increase (22%). At the same time, 42% anticipated reducing spending on large purchases.

“These trends suggest that consumers in Botswana are scaling back their short-term spending to prioritise long-term financial goals and essential expenses,” said Kabelo Ramaselwana, CEO of TransUnion Botswana. “Trimming non-essential costs is a smart strategy to build and maintain financial stability and resilience.”

Taking intentional steps towards financial sustainability will help the 34% of Batswana who are expecting to miss at least one bill or loan payment in the next quarter. Of those facing this challenge, 42% plan to explore additional job opportunities or take on gig work to boost their available funds, 38% plan to make partial payments, and 25% intend to use their savings to address the shortfall.  

Gen Z and Millennials Lead the Charge in Credit Applications Amid Access Concerns

During the quarter surveyed, 95% of respondents considered access to credit important, yet only 41% felt they had sufficient access. This shows a gap between the importance of credit access and consumer confidence, pointing to a need for more inclusive lending. Looking ahead, 39% of respondents planned to apply for new or refinanced credit within the next year. Among these, 42% intended to apply for a new personal loan (six percentage points higher than Q2 2024), while 30% planned to seek a new home loan. Additionally, 17% expressed interest in applying for a new car loan or lease, or student loan.

Among those intending to apply for new credit or to refinance existing credit, most were Gen Z consumers (43%) followed by 37% of Millennials (aged 29-44) and 35% of Gen X (aged 45-60).

“Gen Z and Millennial consumers are entering the workplace and embracing the lifestyle elements that come with establishing a career and a family, while also taking a strategic approach to credit - carefully managing and monitoring their credit profile to enable confident transactions with financial institutions to empower themselves to achieve great things,” says Ramaselwana.

Financial Literacy Gaps Persist, Opportunities for Alternative Data Identified  

In Q2 2025, many surveyed consumers in Botswana recognised the importance of credit monitoring: 37% of respondents considered it extremely important and 38% rated it as very important. Despite this awareness, only 48% of respondents reported checking their credit at least monthly followed by 13% who did so quarterly. Alarmingly, 27% said they don’t monitor their credit, though this is a five-percentage-point improvement from the previous year. This gap highlights the need for improved financial literacy and easier access to credit tools. Among those who did monitor their credit, 45% focused on report accuracy, 38% aimed to prevent fraud and 37% wanted to improve their credit scores.

Over half of respondents (51%) believed their credit profiles would improve if businesses used information not on the standard credit report, such as rental payments, gym membership payments and other alternative data. Medium-income consumers (N$300,001 to N$800,000 per annum) were the most optimistic as 55% believed their credit profiles would improve if alternative data were considered beyond traditional credit reports.

^{* TransUnion’s Consumer Pulse Survey of 251 adults was conducted 5–25 May 2025 by TransUnion in partnership with third-party research provider Dynata. Adults 18 years and older residing in Botswana were surveyed using an online research panel method across a combination of desktop, mobile and tablet devices.}

Information and insights company TransUnion Kenya has published its Q2 2025 Consumer Pulse Study* which shows that the finances of 59% of Kenyans were going as planned or better, with 84% expecting their income to increase in the next year. This is likely fuelling the optimism of 84% of Kenyans who say that they’re optimistic about their financial future.

Kenyans are taking charge of their financial futures, with 34% indicating that someone in their household started a new business, nearly one in five (18%) started a new job, and one fifth (20%) have had increases in their incomes in the past month. This confidence – and increase in income – has seen 40% of consumers paying down their debt more quickly, while nearly half (46%) have been able to increase their emergency savings – a five-percentage point increase from the same period last year.

While Kenyans express optimism about the future, their top financial concerns reflect ongoing macroeconomic pressures. Inflation leads the way, with 76% identifying it among their top three worries, followed closely by job security (60%) and housing affordability (55%). Together, these paint a picture of a population navigating rising costs, employment uncertainty, and challenges in securing stable living conditions. With these concerns in mind, 61% cut back on discretionary spending such as dining out, travel or entertainment in the preceding three months.

This is likely to be a trend that will continue, as more than half (55%) expect their discretionary spend to decrease in the coming three months, and 42% expected their spend on in-store or online retail to decrease too. Nearly half (49%) expected to spend less on large purchases in the next quarter.

In line with these constraints, 62% of Kenyans said that they’re expecting to be unable to pay at least one of their current loans or bills in full in the coming quarter – although this is slightly less than those who said the same thing a year ago (64%). Determined to meet their obligations, 48% said that they would take on temporary or gig work to service their debt, 34% said that they would use money from their savings, and 30% said that they would borrow money from a friend or family member.

“Kenya continues on its growth path, driven by resilient and value-driven consumers who are navigating a moderate inflation environment that’s inspiring cautious optimism in the country’s recovering economy,” said Morris Maina, CEO of TransUnion Kenya. “By delaying spend on big ticket items and finding ways to manage their debt effectively, consumers are signalling mature credit behaviour, which in turn is likely to be a driver for economic growth into the future.”

One of the most effective ways for consumers to manage their credit commitments effectively is to monitor their credit score and record, and nearly two thirds (65%) of respondents to the survey said that they monitor their credit at least monthly. More than half (55%) said that they do this to improve their credit scores, half (50%) said that they do so to monitor accuracy, and nearly one third (32%) said that they do so to protect themselves against fraud.

Kenyans focus on fraud detection and prevention

Data breaches (56%), stolen identity (53%) and credit card fraud (46%) were the cyber threats that most concerned surveyed Kenyan consumers. More than half of Kenyans (56%) were worried about becoming a victim of fake social media profiles (56%), with the next most pressing worries being that personal information would be exposed in data breaches (52%), that they would fall victim to viruses or malware (44%) or email phishing (44%).

In Q2 2025, 71% of respondents reported being targeted by fraud attempts through online platforms, emails, phone calls, or text messages, but they did not fall victim. An additional 10% said they were both targeted and scammed.

Medium-income consumers (KSH 300,000 to KSH 1.4 million per annum) were particularly affected, with 77% reporting fraud attempts — nearly ten percentage points higher than other income groups. The most common types of scams included vishing (fraudulent phone calls meant to trick you into revealing data ) at 46%, money/gift card scams (45%), phishing (fraudulent emails, websites, social posts, QR codes, etc. meant to steal data) at 40%, smishing (fraudulent text messages meant to trick you into revealing data) at 39% and third-party seller scams on legitimate retail websites (36%).

“Financial services institutions can help their consumers protect their credit profiles by adding solutions like identity proofing and risk-based authentication to their onboarding processes, without compromising consumer experiences during the application process,” Maina said. “With fraudsters evolving their strategies all the time, preventing and detecting fraud must be a holistic approach that empowers financial services providers, businesses and consumers to protect themselves.”

#ends

^{*The survey of 433 Kenyan adults aged 18 or older was conducted 5-15 May 2025 in partnership with third-party research provider, Dynata.}

In a context of GDP growth of 7.8% during the first quarter, ongoing economic recovery and the government’s ongoing efforts to strengthen key industries and maintain macroeconomic stability, Rwandan consumers were notably more optimistic about their financial futures in Q2 2025 compared to a year ago.

According to the TransUnion Consumer Pulse Study for Q2 2025, 81% of Rwandans felt financially hopeful, with 38% having seen a growth in income – up five percentage points from those who said the same a year ago – and 37% saying that their finances were better than expected.

“Rwandan consumers are demonstrating remarkable resilience and optimism in the face of economic challenges. The strong sense of financial hope reflects a broader national momentum toward inclusive growth. As access to credit and digital trust become increasingly vital, it’s clear that empowering consumers with the right tools and protections will be key to sustaining this positive trajectory,” said Thabo Molefe, head of Africa regions, TransUnion.

In the past three months, Rwandan households faced some financial setbacks, with job losses emerging as the most significant challenge. Specifically, 29% of respondents reported job losses. Additionally, 20% experienced wage or salary reductions, 14% had their work hours reduced, and 12% said a household business had closed or lost orders.

On the upside, 23% indicated that they started a new job, 22% said that someone in their household started a new business, and 16% had salary increases. In terms of financial behavior, 28% saved more in an emergency fund and paid down their debt faster while 24% saved more for retirement.

In the next three months, 38% of the surveyed consumers expect to increase discretionary spending. This percentage is higher than that of respondents who expected discretionary spending to remain the same (21%) or decrease (30%). At the same time, respondents are expecting an increase in both medical services (45%) and digital services (42%) costs.

More than half (51%) of Rwandan consumers expected to miss at least one bill or loan payment in the coming quarter. Rwandans are determined to pay their bills and loans, however, with 39% saying that they’ll pay a partial amount that they can afford, 39% saying that they’ll take on gig work, and 39% saying that they’ll use money from their savings.

Rwandans Believe Access to Credit is Important

In Q2 2025, a significant 99% of respondents considered access to credit important, yet only 41% felt they had sufficient access. This indicates a noteworthy gap between credit access and consumer confidence, pointing to a need for more inclusive lending. Looking ahead, 55% planned to apply for new or refinanced credit within the next year. Among these, 46% were planning to apply for a new personal loan, 26% intended to apply for a new student loan, and 23% were planning to apply for a new home loan.

Nearly half (49%) of respondents considered applying for credit or refinancing but ultimately chose not to proceed. The main reasons were high borrowing costs (27%) and concerns about being rejected due to income or employment status (22%). Moreover, 20% found an alternative funding source, 19% said that getting a decision takes too long, and 17% said that applying was too much work.

Rwandans Affected by Fraud Attempts

Following a study which found that nearly seven in 10 Rwandans were targeted with fraud in the last five months of 2024, more than one third (37%) of consumers identified cybersecurity threats as a major obstacle to adopting new digital technologies, while 30% expressed concerns about identity theft. These concerns highlight the need for stronger digital safeguards and greater public awareness to foster trust in online platforms and services.

High-income consumers were particularly affected by fraud attempts during Q2 2025, with 59% reporting attempts. The most common types of scams included money/gift card scams (49%), phishing (fraudulent emails, websites, social posts, QR codes, etc. meant to steal data) at 31% and vishing (fraudulent phone calls meant to trick users into revealing data) at 28%. Among high-income consumers, money or gift card scams (47%) and phishing (31%) were the most frequently encountered scams.

Sharing personal information was a concern for 72% of consumers, due to fears of privacy invasion (63%) and identity theft (59%). Additionally, 73% said they have proper access to their credit information. There is still an opportunity to implement stronger cybersecurity measures, consumer education, and regulatory oversight to build trust in Rwanda’s digital economy.

“As Rwanda’s economy continues to recover and digital adoption accelerates, protecting consumers from fraud must remain a top priority. Empowering individuals with access to their credit information and the tools to monitor it is about more than improving their financial health, it’s about building trust in a digital future,” said Molefe.

Consumers can find out more about their credit report from TransUnion here.

ENDS

^{Note to editors:}

^{* This online survey of 345 adults was conducted May 5–25, 2025}

Zambians were optimistic about their financial health during Q2 2025, with nearly eight in ten (79%) feeling optimistic about their household finances for the coming year and 82% of all surveyed expecting their income to increase in the next 12 months. Over one third (34%) of respondents reported an increase in household income over the past three months, while 36% said that their finances were better than planned.

According to the TransUnion Consumer Pulse Study for Q2 2025*, Zambians had further positive financial news: 38% had paid debt down faster in the past three months – up eight percentage points (pp) from a year ago – and 25% said that they had saved more in an emergency fund in that time period.

Despite their relatively positive income outlooks, Zambians were concerned about macroeconomic dynamics, including inflation, jobs and housing prices. During the quarter studied, 79% listed inflation as one of their top three financial concerns in the next six months, followed by housing prices (rent or mortgage) at 59% and jobs at 58% (nine pp higher than Q2 2024). Possibly due to these concerns, in the past three months, 55% of consumers indicated they had cut back on discretionary spending (e.g., dining out, travel, entertainment); 44% cancelled or reduced digital services (e.g., wireless, cable TV, internet); and 41% cancelled subscriptions or memberships (seven pp higher than Q2 2024).

“Zambian consumers are demonstrating remarkable resilience and optimism in the face of economic challenges, while prioritising essential expenses and actively trimming non-essential costs to maintain financial stability,” said Mildred Stephenson, CEO of TransUnion Zambia. “As access to credit and digital trust becomes increasingly vital, it’s clear that empowering consumers with the right tools and protections will be key to sustaining this resilience.”

Regarding payment obligations, 35% expected to be unable to pay at least one of their current bills or loans in full. Among these respondents, almost half (48%) said they would pay their current bills and loans with a partial amount they could afford. Meanwhile, 45% planned to take on temporary/gig work to service their debts, and 35% intended to borrow money from a friend or family member. Finally, 28% of respondents said they would use savings.

Zambians Believe Credit Can Help Achieve Their Financial Goals

During the quarter studied, 94% of respondents viewed access to credit and lending products as important to achieve their financial goals, yet only 42% felt they had sufficient access. Among all surveyed, 45% planned to apply for new or refinance existing credit within the next year. Among them, the most popular credit products they said they’d apply for were new personal loans (46%) and refinancing existing personal loans (37%). Additionally, 23% said they’d apply for buy now, pay later services and 20% a new student loan.

More than half (54%) considered applying for credit or refinancing but ultimately chose not to proceed. High borrowing costs (36%) and not enough difference to payments when refinancing (30%, up 10 percentage points from a year ago) were the main reasons Zambians were hesitant to pursue credit. These trends, likely driven by broader economic pressures, continue to discourage engagement with formal credit channels.

Rising interest rates also influenced consumer behaviour. More than half (56%) said interest rate increases had a high impact on whether or not they would apply for credit in the next 12 months, while 29% reported a moderate impact.

“These trends underscore a growing sensitivity to economic conditions and highlight the need for more affordable, transparent and flexible credit solutions,” Stephenson said.

Zambians Concerned About Fraud

As fraud attempts continue to proliferate in Zambia, consumers are feeling their effects beyond being victims. For instance, when it comes to using digital technology in new ways, 49% of survey respondents cited cybersecurity threats as a major barrier to doing so, while 39% expressed concerns about identity theft.

Stolen identity (50%), credit/payment card fraud (46%) and data breaches (40%) were the cyber threats that most concerned surveyed consumers. Identity attack methods respondents said they were most concerned about were becoming a victim of fake social media profiles (69%), personal information exposed in data breaches (51%), email phishing (50%), and viruses or malware (43%). More than three quarters (76%) reported being targeted by email, online, phone call or text message fraud in the last three months but didn’t fall victim. An additional 9% said they were both targeted and fell victim. High-income consumers (ZK108,000 and more annually) were particularly affected: 91% reported being targeted — at least seven percentage points higher than other income groups.

“Zambian consumers continue to display resilience amid challenging economic conditions,” said Stephenson. “Managing their credit effectively and taking steps to prevent fraud will see Zambians benefit from the country’s expected growth rebound¹.”

Consumers can find out more about their credit report from TransUnion here.

#ends

^{*This online survey of 325 adults was conducted May 5–25, 2025 by TransUnion in partnership with third-party research provider, Dynata. Adults 18 years and older residing in Zambia were surveyed using an online research panel method across a combination of desktop, mobile and tablet devices.}

^{1 2025 Economic Outlook}

The findings from TransUnion Consumer Pulse Study for Q2 2024 revealed a slight improvement in credit access but a significant surge in credit demand. According to the study, consumer demand for credit increased, with 48% of respondents planning to seek new or refinance existing credit within the next year, an increase of 10 percentage points from 2023. While 96% of respondents considered access to credit and lending products important for achieving their financial goals, only 32% felt they had adequate access, a slight improvement from 30% the year before. Among those intending to apply for credit, 53% considered new personal loans, with Millennials and Gen X showing the most interest in this type of credit.

To help consumers navigate these financial challenges, Mildred Stephenson, Chief Executive Officer at TransUnion Zambia, offers the following tips to ensure individuals understand their options and make informed choices that can contribute to increased financial inclusion:

1. Create a Budget: Track your income and expenses to understand where your money is going. This will help you identify areas where you can cut back and save more. It will also help you determine if you can afford repayments on any credit you might be applying for.
2. Build an Emergency Fund: Set aside money for unexpected expenses. This can prevent you   from relying solely on credit during financial emergencies.
3. Pay Bills on Time: Late payments can negatively impact your credit score. Set up reminders or automatic payments to ensure you never miss a due date.
4. Use Credit Cards Responsibly: Use credit cards wisely and avoid carrying a balance from month to month whenever possible. Pay off your credit card balance in full each month to avoid interest charges.
5. Avoid Unnecessary Debt: Only take on debt that is necessary and manageable. Before applying for new credit, consider whether it is essential and if you can afford the repayments.
6. Monitor Your Credit Report: Regularly check your credit report to ensure there are no errors and to keep track of your credit score. This can help you identify and address any issues early on.
7. Accessing your credit report: Your credit report is a crucial document that provides a summary of your personal financial history. Regularly checking your credit report helps you ensure the information is accurate and spot any signs of identity theft early

To obtain your credit report, you can:

• Call TransUnion: At 0211 220 530/36/420500 or 0955985107/5307.
• Email TransUnion: Send an email to CustomerCareZM@transunion.com 
• Visit TransUnion at:  5th Floor, Sun Share Tower, Plot No. 15584 / 1, Katima Mulilo Road, Olympia, Lusaka, Zambia.

“We recognise the critical role financial literacy plays in empowering Zambians to make informed financial decisions. By understanding and improving credit health, managing debts responsibly and enabling a culture of informed financial choices, we can collectively build a more financially inclusive and resilient Zambia. At TransUnion, we are committed to providing the necessary tools and insights to support this journey towards financial empowerment.” concludes Stephenson.

Information and insights company TransUnion has published its first Consumer Pulse Study in Rwanda, which shows that Rwandan consumers are navigating a complex macroeconomic landscape resulting in financial disparities amongst households.

Within this context, Rwandan households saw varied impacts on their incomes in Q2 2024. While 33% of respondents said their incomes had increased in the previous three months, 25% witnessed a decrease in income and 42% noted no change. Employment expansion in late 2023 reduced the unemployment rate to 16.8% and, during Q2 2024, 22% of consumers surveyed started a new business and 21% started a new job leading to increased income. However, job losses (28%) and salary reductions (18%) caused income declines for many respondents. On an encouraging note, 81% of Rwandans are optimistic that their income will increase in the coming year.

Sam Tayengwa, CEO of TransUnion Rwanda, says: “Rwandan consumers are showing remarkable resilience in the face of financial challenges. While many are experiencing financial strain, their optimism about future income prospects and the proactive steps they are taking to manage their finances is encouraging.”

Consumer response to economic strain

Inflation, a lingering concern for nearly one in ten (8.9%) of households in Q4 2023 decreased to just below one in twenty (4.6%) in the first four months of 2024, mainly due to reduced food inflation. This is expected to ease financial pressure on consumers and support household spending in the second half of 2024.

However, strong GDP growth of 8.2% in 2023, driven by robust household spending, is expected to soften to 7% for 2024, with risks of adverse weather impacting food production, in turn leading to higher food prices and adversely affecting impoverished households. High energy costs and persistent poverty present additional challenges.

The ability of consumers to meet their monthly bills is strained with 42% expressing concerns about fulfilling their existing financial obligations, of which 44% are Millennials (27–42 years old). Of the consumers who are unable to pay their bills and loans in full, 37% plan to seek assistance from friends or family; 35% intend to make partial payments; and 33% will dip into savings to cover the shortfall.

Economic and financial pressures led to 35% of respondents reducing spending on discretionary ‘luxuries’ like dining out, travel, and entertainment in the last three months. There is a focus on the future, however, some respondents prioritised debt repayments and some increased contributions to emergency funds during the quarter (both at 28%). A trend towards responsible financial management is evident, with 49% planning to allocate more income toward bills and loans going forward.

Financial inclusion

Despite a high demand for credit and 98% emphasising the essential role that credit plays in achieving financial goals, just 37% feel they have sufficient access to credit and lending products (particularly Millennials at 42%).

During Q2 2024, 51% of consumers planned to seek new credit, with Millennials showing the most interest (60%). However, of the 49% who abandon plans for new credit or refinancing over the quarter (27%) cited high costs and concerns about income and employment stability.

Among those who intended to seek credit, 44% contemplated new personal loans, 38% considered student loans and 17% planned to apply for a new home loan.

With the Central Bank of Rwanda cutting its policy interest in May 2024 – for the first time since 2020 – and, despite the relatively high bank lending rate (15.9% in April), this move will likely stimulate credit demand over the next year.

Monitoring credit reports

When it comes to credit monitoring, 96% of Rwandans recognise the importance of checking their credit reports. Among the respondents, 64% monitor their reports at least monthly, and this is highest among Millennials (69%), which correlates with this age group’s perceived access to credit.

Overall, nearly half (49%) think that including non-traditional information like rental payments, gym memberships and short-term loan histories in credit assessments would boost their credit scores.

Digital fraud and security

Rwanda’s ecommerce penetration remains low, with 65% of consumers conducting less than half their transactions online, primarily due to limited internet access and security concerns. Digital fraud is a growing threat, with half (50%) of respondents being targeted by online, email, phone call or text message fraud schemes but not becoming a victim in the last three months and 11% targeted and claimed they fell victim.

Money and gift card scams were the most prevalent fraudulent scheme of those targeted, affecting 44% of respondents, followed by vishing (28%) and money mule scams (26%). In Q2 2024, 69% of consumers in Rwanda were concerned about sharing personal information, with identity theft (67%) and invasion of privacy (64%) being primary concerns.

“This shows the importance of transparency and accountability in data collection and utilisation by businesses and institutions. At the same time, consumers should check their credit reports regularly. Early detection of fraudulent activities that affect their credit scores enables consumers to take timely corrective action,” says Tayengwa.

Consumers can find out more about TransUnion Menyesha here.

Information and insights company TransUnion has published its latest Consumer Pulse Study which shows that Namibian consumers are grappling with continued financial challenges, driven by the impact of job losses, salary reductions and high inflation.

According to the study, 38% of consumers experienced stagnant incomes and 34% experienced decreased incomes in Q2 2024. However, these figures are both down from Q3 2023, by two percentage points and six percentage points, respectively. This improvement shows that there is light at the end of the tunnel, with 28% of households also reporting an increase in their income, up from 20% in Q3 2023.

“Namibian consumers are showing remarkable resilience in the face of financial challenges. While many are experiencing financial strain, their optimism about future income prospects and the proactive steps they are taking to manage their finances is commendable,” says Lara Enslin, CEO at TransUnion Namibia.

Consumer response to economic strain

Inflation, averaging 5.9% in 2023 driven by a surge in food prices, has exerted pressure on disposable income and spending. Although overall consumer inflation decreased to 4.9% in the first five months of 2024, it remained a significant concern for respondents - exacerbated by the sharp escalation of transport inflation driven by rising fuel prices.

Many consumers have revised their household budgets in response to these financial pressures. Over the past three months, 52% of households opted to reduce discretionary spending, primarily Millennials (27–42 years old) at 56% and Gen X (43–58 years old) at 57%. Furthermore, 27% cancelled or reduced digital services, and another 27% cancelled subscriptions and memberships.

Burger notes that this prioritisation of essential expenses over discretionary ones indicates a proactive approach to managing financial challenges.

Optimism and financial planning

A significant 81% of Namibian consumers feel optimistic about their future income prospects, an increase of eight percentage points from Q3 2023. This optimism is particularly strong among younger generations, with 85% of Gen Z (born 1995 to 2010) and 82% of Millennials expressing confidence in income growth.

Despite a prevailing sense of optimism about future income prospects, 49% of consumers anticipate difficulties in meeting their existing bill and loan obligations – a staggering increase from 45% in Q3 2023.   To cope, 36% of respondents plan to make partial payments, 35% will seek temporary work, and 25% intend to borrow from friends or family.

On a positive note, looking ahead, 44% intended to increase their retirement investments in the coming quarter. At the same time, 39% plan to spend more on medical services, and 36% on digital services. Additionally, 46% of consumers expect to pay more towards bills and loans in the coming year.

Financial inclusion and access to credit

Nearly all consumers (94%) consider access to credit essential. However, only 32% feel they have sufficient access, a slight decline from 34% in Q3 2023. In Q2 2024, credit demand surged, with 41% of respondents planning to seek new credit within the next year. Millennials and Gen X showed the most interest, at 42% and 43% respectively. Among those planning to seek credit, 35% considered student loans with 31% (eight percentage points more than in Q3 2023) looking at personal loans.

While most consumers (60%) followed through on planned credit applications, fear of rejection based on income or job status (34%) and the high cost of credit (28%) were notable reasons why they abandoned plans to apply for credit. This could be as a result of the bank lending rate being at a high of 11.5%, which led to increased debt repayment burdens.

Digital fraud and identity protection

Namibia’s low internet penetration continued in Q2 2024, with 75% of consumers conducting less than half their transactions online. Efforts to combat digital fraud showed some success, with the percentage of respondents unsuccessfully targeted by fraudsters declining to 52% from 59% last year. However, another 11% were targeted and fell victim to digital fraud, highlighting the need for enhanced vigilance and education on recognising and reporting fraudulent activities. This is further highlighted by the high percentage (37%) of respondents who remained unaware of any fraud attempts.

Money and gift card scams were the most prevalent fraudulent scheme experienced by those targeted, affecting 37% of respondents, followed by vishing (31%) and phishing (29%). Consumers’ concern about sharing personal information increased to 91%, with identity theft (76%) and invasion of privacy (75%) being primary concerns.

“These numbers show that strengthening cybersecurity measures and promoting digital literacy among all age groups are crucial to effectively mitigate digital fraud risks. At the same time, consumers should check their credit reports regularly to flag any possible fraud that affects their credit scores, as early as possible,” says Enslin.

Consumers can find out more about their credit report from TransUnion here.

According to information and insights company TransUnion’s latest Consumer Pulse Study, Botswana’s economic landscape is showing positive shifts in the second quarter of 2024.

Household incomes improved, with 41% of consumers reporting income increases over the past three months, a notable rise of four percentage points from the previous year, and a figure that is almost double the number of households that saw a decline in income (21%). This improvement aligns with 25% of households starting new businesses to increase their income, as well as Botswana’s formal sector earnings, which saw a 13.1% increase by the end of last year, compared to 8% wage growth in 2022.

Further compounding the positive macroeconomic climate, the inflation rate has decelerated significantly, to 3.4% (January – April) in 2024, down from 5.1% in 2023 and a peak of 12.2% in 2022. While inflation is expected to average out at 4% for the year, this significant decrease is contributing to a feeling of improved financial wellbeing and buoyancy. Optimism about future income has risen, with 77% expecting an increase over the coming 12 months (up three percentage points compared to 2023).

Kabelo Ramaselwana, Country Manager at TransUnion Botswana, notes that the slowdown in inflation supports disposable income growth and these economic improvements and income increases are being managed responsibly by Botswanan consumers. “However, it is possible that the high unemployment rate combined with income inequality are putting the brakes on and could further limit household spending growth in the near-term.”

Ability to pay bills is vastly improved

According to the study, 74% of consumers expect to be able to pay their bills in full, with the proportion of households struggling to make payments down by eight percentage points to 26% compared to the same time last year. Of this struggling segment, 43% plan to make at least partial payments. A further 21% plan to dip into their savings to service their debt responsibilities and, in an increase of seven percentage points from 2023, 11% plan to take out a personal loan to cover their bills.

As households gain traction towards financial stability, 25% are focusing on paying down their debt faster and 29% are building financial resilience with increased contributions to emergency funds.

Consumers are also cutting back on non-essential expenditure, with 56% of respondents reducing their discretionary spending over the past three months, with 28% cancelling subscriptions and memberships. Looking ahead, consumers plan to focus on paying bills and loans (46%), boost retirement funds and investing (45%), and pay for medical care and services (42%).

Credit and financial inclusion

Access to credit remains crucial for Botswana’s consumers, with 96% considering it important. Perceived access to credit improved markedly by 10 percentage points from last year as 45% felt adequately served, notably among Millennials (27–42 years old) at 48% and Gen X (43–58 years old) at 49%. Looking ahead, 33% of consumers plan to apply for new or refinance existing credit, with Millennials (34%) showing the highest demand.

Among those planning to apply for new or refinance existing credit within the next year, 37% indicated a demand for new personal loans, reflecting a notable nine percentage-point increase from the prior year. Gen Zs (48%) and Millennials (35%) were the most interested in acquiring personal loans while, overall, 34% were considering new home loans, a significant 12 percentage-point rise from the previous year.

However, 50% of potential borrowers abandoned their plans to take out new credit, with 31% citing the high cost of credit as the reason for this decision.

Monitoring credit reports

Monitoring their credit status is viewed as extremely, very or moderately important by 85% of consumers, yet only 44% review their credit reports monthly. A growing number of consumers (55%, up from 46% last year) believe that incorporating alternative data, such as rental payments would improve their credit scores.

Fraud and consumer education

Digital fraud remains a concern, with 72% (up nine percentage points) of respondents having been targeted by fraud schemes, although only 5% fell victim, a decrease from 8% the previous year. Vishing (47%), phishing (40%), and smishing (38%) are the most prevalent scams. Surprisingly, 23% of consumers reported being unaware of any targeted fraud schemes. Nearly all (96% in Q2 2024, up from 94% the previous year) consumers expressed concerns about sharing personal information. Their main concerns included fear of invasion of privacy (84%), worries about identity theft (77%), and receiving unsolicited marketing communications (36%).

“These findings highlight the importance of robust data protection measures and privacy policies. Addressing these concerns is crucial for businesses to build consumer trust and ensure responsible data handling practices. At the same time, consumers should check their credit reports regularly to flag any possible fraud that affects their credit scores, as early as possible,” says Ramaselwana.

Consumers can learn more about their credit profile from TransUnion here.

According to information and insights company TransUnion’s latest Consumer Pulse Survey, Zambian households are facing significant financial challenges like small business closures, job losses and rising inflation.

According to the study, 33% of households reported an increase in income (a five percentage-point drop from Q2 2023) and 29% reported a drop in their income over the past three months. Despite this, 79% of consumers expect their incomes to improve over the next 12 months, although this was three percentage points lower than a year ago.

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

Consumer responses to economic strain

With inflation having risen to 13.8% in April 2024, the number of consumers who expect to be able to pay all of their current bills and loans in full dropped to 65% (down two percentage points from the same time last year). This financial pressure may have led many to consider paying their current bills and loans by taking on temporary work (47%), making partial payments (39%) or borrowing from friends and family (29%).

Possibly in response to rising interest rates, 30% of respondents said they paid down their debt faster in the last three months – down seven percentage points from a year ago. This could be a result of disposable incomes having taken a knock with bank lending rates increasing to 28% in May 2024 (their highest level since 2020). In May, the Bank of Zambia also raised its policy rate by 100 basis points to 13.5% to address persistently high inflation – with no anticipated monetary easing until 2025.

Spending also appears to have been affected by the increasing rates. Over the past three months, 61% of consumers reported reducing their discretionary spending (dining out, travel, entertainment) and half of the surveyed households (50%) said they had cancelled or reduced digital services (a 10 percentage-point increase from Q2 2023).

Almost one in four households (26%) reports boosting their contributions to emergency funds, but a concerning trend was the rise in consumers reporting reduced retirement savings at 18% (versus 11% last year).

Looking ahead, consumers plan to pay more on bills and loans (47%) and medical services (45%), and boost retirement funds and investing (40%) in the next three months.

Credit access and demand

While 96% of Zambian respondents consider access to credit important for achieving their financial goals, only 32% feel that they have adequate access – a slight improvement from 30% last year.

In Q2 2024, the demand for credit surged with 48% of consumers planning to seek new or refinance existing credit in the next year, a notable 10 percentage-point increase from a year ago. Millennials (27–42 years old) and Gen X (43–58 years old) showed the highest demand at 54% each. Among those planning to apply for new or refinance existing credit within the next year, 53% said they’ll apply for a new personal loan in the next year, a significant 12 percentage-point jump from last year. Millennials (57%) and Gen X (64%) showed the most appetite for new personal loans.

However, 47% of potential borrowers reported abandoning their plans to take out new credit, with 38% citing the high cost of credit as the top reason for this decision.

Monitoring credit reports

Monitoring their credit status is viewed as extremely, very or moderately important by 90% of consumers, yet just below half (49%) say they review their credit reports monthly, and 27% don’t monitor them at all. A growing number of consumers (49%, up from 47% last year) believe that incorporating alternative data, such as rental payments and gym memberships would improve their credit scores.

Fraud concerns

Ecommerce is on an upward trend with 34% (compared to 28% last year) of respondents saying they conduct over half their transactions online. However, fraud poses a significant concern, with 75% reporting that they were targeted online, email, phone call or text messaging fraud in the past three months but avoided falling victim.

Among those who said they were targeted, money and gift card scams were the most common reported methods, at 50%, (up from 46% last year) followed by smishing (43%), and phishing and vishing (both at 36%). Consumer concern regarding sharing personal information remains notably high, at 95%. The main concerns included invasion of privacy (79%), fear of identity theft (77%) and receiving unsolicited marketing communications (40%).

“These findings highlight the importance of robust data protection measures and privacy policies. At the same time, consumers should check their credit reports regularly to flag any possible fraud that affects their credit scores, as early as possible,” says Stephenson.

Consumers can find out more about their credit report from TransUnion here.

Information and insights company TransUnion has published its latest Consumer Pulse Study which shows that Kenyan households experienced a modest financial rebound in the second quarter of 2024, largely driven by new business ventures, enhanced debt management, and less impact from job losses.

According to the study, 34% of consumers saw an increase in income in the last three months, led by gains among the Gen Z (18–26 years old) and Millennial (27–42 years old) groups. While a similar number (36%) of consumers also reported a decrease in income over the last three months, optimism about future income is high with 85% of consumers expecting an increase over the next 12 months. This positive outlook is particularly prevalent among younger generations.

Consumers’ ability to pay their bills in full increased significantly, with 64% saying that they would be able to do so in Q2 2024, while those unable to pay decreased by six percentage points to 36% compared to the same time last year. Kenyan consumers have been resolute in tackling their outstanding debts: 51% opted to pay partial amounts if they were unable to settle them in full, and one-third (33%) of consumers are prepared to utilise savings to service their debts.

Behaviour trends and financial choices

Over the past three months, consumers cut back on non-essential expenditure, with 56% of households, particularly Gen X (43–58 years old), reporting reduced discretionary spending. Across all generations, 49% of consumers are expecting to reduce discretionary spending in the next three months and 42% anticipate cutting back on large purchases like appliances and vehicles. However, consumers plan to direct their increased disposable income towards retirement funds (48%), bills and loans (41%), and digital services (38%).

A growing number of households (41%, compared to 30% in Q2 2023) have increased their contributions to emergency funds as a strategic measure to buffer against potential payment shocks.

“The possible easing of inflationary pressures in the near future may lead to growth in disposable income, which could in turn support household consumption in 2024. This may be especially true if the expected income increases come to bear and consumers see fit to increase their discretionary spending, and reinstate the digital services, memberships and subscriptions that were cancelled during the quarter,” says Morris Maina, CEO of TransUnion Kenya.

Credit and financial inclusion

Financial inclusion in Kenya is on the rise, driven by the adoption of mobile technologies and digital payment methods. However, while nearly all (99%) consumers deemed access to credit as essential, only 36% of consumers feel they have sufficient access to credit – a slight improvement from 33% a year ago.

The demand for credit remains high, with 60% of consumers planning to apply for new credit, or to refinance existing credit, within the next 12 months. Millennials (55%) and Gen X (58%) show the greatest intention to take out new personal loans, while 38% of respondents are considering new mobile loans. Interest in ‘buy now, pay later’ (BNPL) services has grown, with 33% of consumers planning to explore this credit option (a five percentage-point increase from Q2 last year).

Despite the demand for credit, 66% of consumers who intended to apply ultimately chose not to. The primary deterrent is the high cost of credit (41%), with the recent increase in the policy rate raising the average commercial bank lending rate to the highest level in eight years.

Monitoring credit reports

The study shows that monitoring their credit status is crucial for Kenyan consumers, with 91% considering it extremely, very or moderately important. The frequency of credit report checks increased, with 59% of respondents reviewing their reports at least monthly. Consumers (60%) believe that including alternative data in credit reports, like rental payments and BNPL loans, could improve their credit scores.

Fraud and consumer education

Kenyan consumers continue to embrace digital platforms, with 42% conducting at least half of transactions online, up 10 percentage points from last year. However, digital fraud remains a significant concern. In Q2 2024, 72% of consumers reported being targeted by digital fraud schemes but avoided falling victim, and 8% reported being targeted and claimed they fell victim. Vishing (45%, compared to 40% in Q2 2023), smishing (44%, compared to 40% in Q2 2023), and phishing (36%, compared to 33% in Q2 2023) scams are on the rise, but awareness of digital fraud schemes is high.

Consumer concern about sharing personal information remained significant at 91%, albeit down from 94% in Q2 2023. Concerns related to sharing personal information included invasion of privacy (81%) and fear of identity theft (67%), emphasising the necessity for robust security measures and consumer education to uphold trust in digital platforms and encourage greater use of digital services.

“This research shows how important it is for consumers to monitor their credit records regularly. Early detection of fraudulent activities that could impact their credit scores enables consumers to take timely corrective action,” says Maina.

Consumers can find out more about TransUnion’s Nipashe here.

According to TransUnion’s Q3 Consumer Pulse Study, one of the significant factors contributing to the decrease in household income was job loss, with 27% of consumers reporting that someone in their household lost their job over the past month. Other factors impacting decreased income included wage or salary reductions (16%) and owning a small business that closed, or saw orders dry up.

“Many consumers have been forced to adjust their household budgets in response to these challenges, with 56% cutting back on discretionary spending – such as dining out, travel and entertainment – over the past three months,” said Lara Burger, country manager at TransUnion Namibia.

According to Namibia’s Central Bureau of Statistics, the country’s inflation rate rose to 4.7% in August, going up from a near one and a half year low of 4.5% in July 2023. This is expected to increase some consumer costs, particularly around food prices. GDP grew 5.8% in the first quarter of 2023 over the previous quarter, recovering sharply from a 1.8% fall in the previous period, and pointing to its strongest growth since the first quarter of 2013.

Looking ahead, consumers are bracing for further financial strain. A significant 38% of consumers in TransUnion’s survey expected to increase spending on bills and loans over the next three months, while 33% expected to decrease their in-store and online retail shopping (e.g., clothing, electronics and durable goods). In addition, 48% planned to make cuts to their discretionary spending in the next three months, and 28% expected a decrease in large purchases such as appliances and cars.

The survey also highlighted a low percentage who think they have access to credit and potentially a lack of consumer confidence in the credit market. Nearly all consumers (93%) believed access to credit and lending products is important to achieve their financial goals. However, just over a third (34%) felt they had sufficient access to credit, and 35% intended to apply for new credit or refinance within the next year.

Identity risks and usage

Fraud is on the rise. Seven in 10 respondents (70%) reported being targeted by online, email, phone call or text messaging fraud attempts in the past three months. Among those who said they were targeted, the most reported schemes were money or gift card scams (41%), vishing (fraudulent phone calls designed to trick you into revealing personal data, 35%), and phishing (fraudulent emails, websites, social posts and QR codes meant to steal data, 34%).

Concerns about sharing personal information are high, with 89% of consumers expressing worry. The primary concern cited was the fear of identity theft (80%), followed by invasion of privacy (76%). These findings underscore the need for stringent security measures and consumer education about data protection to maintain trust.

“Overall, it's clear that consumers are increasingly aware of the risks associated with fraud. With rampant scams, consumers are cautious about sharing personal information, fearing privacy invasion and identity theft. This indicates a significant need for stronger security measures and robust fraud prevention strategies,” said Burger.

TransUnion’s Q2 2023 Consumer Pulse Study^[2] shows that nearly a third (34%, up four percentage points from Q3 2022) of consumers expect to be unable to pay at least one of their current bills and loans in full. Of those consumers, almost a quarter (24%) plan to borrow from a friend or family member to help pay some of their current bills and loans. Overall, nearly one in four (38%) anticipate increased spending on bills and loans, over half (53%) expect to reduce their discretionary spending (dining out, travel and entertainment) and nearly a third (32%) say they’ll decrease large purchases such as appliances and vehicles in the next three months.

“Macroeconomic pressures remain top-of-mind for many consumers, and this cuts across all sectors of society. What they used to buy for 10 pula now costs 15. They’re worried about inflation, rising interest rates, affordability of basic needs (housing, transport and food prices), and this is affecting how they are managing their household finances,” said Kabelo Ramaselwana, chief executive officer of TransUnion Botswana.

Despite decreased future spending, there is a welcomed sign of incomes that appear to be growing. Nearly four in 10 (37%, 11 percentage points higher than Q3 2022) Botswana consumers report an income increase over the last three months. A similar number (38%) said their income level stayed the same and one in four (25%) said their income decreased. Encouragingly, more than seven in 10 (75%) expect their incomes to increase over the next 12 months.

While steady or increasing income levels may help mitigate the effects of inflation and increased debt levels, concerns over cost-of-living and interest rate increases continue to impact spending behaviour for many consumers. Shifts in household spending included cutting back on discretionary spending (63%, up 25 percentage points from Q3 2022), cancelling subscriptions or memberships (35%) and reducing digital services expenses (27%, up 8 percentage points from Q3 2022) in the last three months.

“Overall, the study suggests that consumers are taking a prudent approach in managing their finances in the face of economic uncertainty, including reining in spending and managing their debt levels, with nearly a quarter – 24% – saying they were paying down debt faster,” said Ramaselwana.

Debt levels remain a key concern for many consumers, with higher interest rates affecting decisions to apply for additional credit or refinance. A third of Botswanans (33%) plan to apply for or refinance credit in the next 12 months. Of those who plan to apply, new personal loans are the most common product (27%), followed by new mortgages (22%) and new credit cards (21%).

Managing financial choices

Nearly all consumers (94%) believe access to credit and lending products is important to achieve their financial goals. However, around two in three (65%) believe they lack adequate access to credit and lending products. Younger generations are especially concerned: 73% of Gen Z (born 1995–2004) and 62% of Millennials (born 1980–1994) were unsatisfied with their credit access.

Most consumers (93%) acknowledge the significance of credit monitoring, but less than half of consumers (43%) reported checking their credit reports at least monthly. Ramaselwana says it is especially concerning that nearly a third (32%) of consumers said they didn’t monitor their credit reports at all. This highlights the need for more education and tools to support regular credit monitoring.

Almost half (46%) of respondents believed their credit scores would increase if financiers incorporated non-standard information into their assessments, such as rental payments and nontraditional payment data (i.e., gym memberships) to help ease or make full assessments of the individual if credit information is limited.

Identity risks and usage

Digital fraud attempts are becoming an increasing issue, with 72% of those surveyed reporting being targeted by online, email, phone call or text message fraud attempts over the past three months. The most common types of fraud schemes among those reporting being targeted included money or gift card scams (51%), vishing (fraudulent phone calls to trick consumers into revealing their data, 38%) and phishing (fraudulent emails, websites, social media posts or QR codes designed to steal data, 35%).

As a result, consumers are concerned about the security of their personal information, with 94% expressing concern about divulging their details. Eight in 10 (80%) are worried about identity theft, and nearly the same number (77%) worry about invasions of their privacy when asked about the reason for being concerned with sharing personal information. The data highlights the crucial importance of trust and robust cybersecurity measures in financial transactions and interactions.

ENDS

Notes to Editors:

TransUnion’s Consumer Pulse Study was conducted in Botswana for the first time in Q3 2022. The Study was conducted again in region in Q2 2023.

^[1] Trading Economics source here.

^[2] The survey polled 401 adult Botswana consumers between 5–22 May 2023.

According to the TransUnion Consumer Pulse Study for Q2 2023, millennials (born between 1980-1994) and Gen Z (1995-2012) are seeing the biggest increases in their incomes, mainly due to new business ventures and wage rises. Nearly four in 10 (37%) are using that additional money to repay their debts, and a quarter (25%) of Zambian households are working to boost their emergency savings.

Part of the reason for this prudent approach is that nearly four in 10 (39%) Zambian consumers are expecting increased financial obligations, which will cause nearly half (49%) of consumers of all ages to cut back on their discretionary spending and four in 10 (40%) to limit large purchases in the next three months.

This cautious outlook on future expenditure suggests that Zambian consumers are prioritising financial responsibility, indicating a noteworthy shift in spending habits, says Weihan Sun, Director of Research and Consulting at TransUnion Africa.

Respondents are taking different approaches to managing debt and loans in times of financial uncertainty. Of those unable to pay their bills in full, 43% choose to pay off their debts in instalments. Close to a third are prepared to dip into their savings to meet their financial commitments, while 29% are considering borrowing from friends and family.

The survey also highlighted a decline in access to credit and consumer confidence in the credit market. Nearly all consumers (96%) believe access to credit is crucial. However, less than a third (30%) said they have adequate access to credit, and six in 10 (62%) do not plan to apply for new credit or refinance existing loans, with rising interest rates as a contributing factor. In May, Zambia’s central bank increased its key lending rate to 9.5% from 9.25% as it battles inflation. 

For those planning to engage with credit (38%), personal loans are the product of choice (41%), followed by refinancing personal loans (25%) and new student loans (22%).

Managing financial choices

Most consumers (94%) acknowledge the significance of credit monitoring, and the survey indicates that more than half of consumers (53%) regularly check their monthly credit reports. However, Sun says it is ‘concerning’ that 30% of consumers do not monitor their credit reports. This highlights the need for more education and tools to support regular credit monitoring.

Opinions were mixed around the question of whether consumers believed their credit scores would improve if businesses used alternative data sets not included on a standard credit report, like rental payments, gym membership dues and short-term loan histories. While a significant proportion (47%) believed their scores would improve, a smaller number (15%) expected no change, and 7% predicted a decrease. Almost a third (31%) needed clarification on the impact, suggesting that educating consumers on the potential benefits of alternative data is important.

Only 28% of Zambian consumers conduct more than half of their transactions online, indicating a continued reliance on traditional methods. This presents a significant growth opportunity for digital channels.

Identity risks and usage

Digital fraud attempts remain a pressing issue for Zambian consumers, with 76% of those surveyed reporting that they had been targeted by such schemes in the last three months. Unfortunately, 9% were targeted and fell victims.

The most common types of fraud schemes included money/gift card scams (46% of respondents), 'smishing' (fraudulent text messages aimed at tricking the recipient into revealing personal data; 43% of respondents), and phishing or vishing scams (one in three consumers). Smishing was reported most frequently by Millennials and Baby Boomers, with the latter also reporting a higher occurrence of vishing attempts, at 56%.

As a result, Zambian consumers are highly concerned about the security of their personal information, with 95% expressing apprehension about sharing their personal details. The data highlights the crucial importance of trust and robust cybersecurity measures in financial transactions and interactions.

“Overall, it's clear that consumers are increasingly aware of the risks associated with digital fraud. With rampant scams, consumers are cautious about sharing personal information, fearing privacy invasion and identity theft. This indicates a significant need for stronger security measures and robust fraud prevention strategies in the digital space,” said Sun.

Consumers can get their free annual credit report from TransUnion here.

According to the TransUnion Consumer Pulse Study for Q2 2023, the major drivers for increases in income included starting a new business (22%), increased salary (20%) or finding a new job (14%). Conversely, job loss (20%) was the primary cause of decreased incomes, highlighting the significance of employment stability for households’ financial well-being.

As a result, many families made budget adjustments in the past quarter, including cutting back on discretionary spending (63%), canceling subscriptions or memberships (35%) and reducing digital services expenses (27%).

This cautious outlook on expenditures suggests that consumers are prioritising financial responsibility, indicating a noteworthy shift in spending habits, says Weihan Sun, Director of Research and Consulting at TransUnion Africa.

To meet their financial obligations, consumers are employing a range of tactics. Overall, 41% plan to make partial payments, 28% will dip into their savings and 24% will look to borrow money from friends or family members. And while 38% anticipate increased bills and loans and 53% expected a continued decline in discretionary spending, nearly a third (32%) expected to reduce large purchases such as appliances and vehicles.

Managing financial choices

Nearly all consumers (94%) believe access to credit is crucial. However, around two in three (65%) believe they lack adequate access to credit and lending products. Younger generations are especially concerned: 73% of Gen Z (born 1995–2004) and 62% of Millennials (born 1980–1994) were unsatisfied with their credit access.

One in three consumers plan to acquire new credit or refinance existing credit. In all, 44% of Gen X (born 1965–1979) respondents plan to apply for new credit products within the next year. Overall, 27% of respondents plan to apply for a personal loan, 22% a new mortgage, and 21% a credit card. Four in 10 (41%) of respondents considered applying for credit but ultimately abandoned their plans, either finding an alternative source (26%) or feeling the cost of new credit or refinancing was too high (24%).

Most consumers (94%) acknowledge the significance of credit monitoring, but less than half of consumers (43%) regularly check their monthly credit reports. However, Sun says it is ‘concerning’ that 32% of consumers do not monitor their credit reports. This highlights the need for more education and tools to support regular credit monitoring.

Almost half (46%) of respondents believed their credit scores would increase if businesses incorporated non-standard information into their assessments, such as rental payments, gym membership payments, short-term loan history, and buy now, pay later (BNPL) services.

Half of respondents conduct at least 25% of their transactions online, with Gen Z leading this trend, but Gen X and Millennials (at 58% and 50%, respectively) are also conducting significant numbers of online transactions.

Identity risks and usage

Digital fraud attempts remain a pressing issue, with 64% of those surveyed being targeted by such schemes over the past three months, and 8% were targeted and fell prey to these schemes. The most common types of fraud schemes included money or gift card scams (51%), vishing (fraudulent phone calls to trick consumers into revealing their data, 38%) and phishing (fraudulent emails, websites or social media posts designed to steal data, 35%).

As a result, consumers are concerned about the security of their personal information, with 94% expressing concern about divulging their details. Eight in 10 (80%) are worried about identity theft, and nearly the same number (77%) worry about invasions of their privacy. The data highlights the crucial importance of trust and robust cybersecurity measures in financial transactions and interactions.

“Overall, it’s clear that consumers are increasingly aware of the risks associated with digital fraud. With rampant scams, consumers are cautious about sharing personal information, fearing privacy invasion and identity theft. This indicates a significant need for stronger security measures and robust fraud prevention strategies in the digital space,” said Sun.

Consumers can get their free annual credit report from TransUnion here.