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.