The Legal Framework for Digital Lending and Mobile Money Services in Zambia, Analyzing Regulatory Gaps, Consumer Protection Challenges and Prospects, for Reform Drawing Lessons from Kenya

Abstract

This research paper analysed the adequacy and appropriateness of the legal framework governing digital lending mobile money operators and consumer protection. The analysis focused on seeing weather the present legislation addresses the security and privacy challenges brought forth by the mobile user’s specifically digital credits. Through a combination of doctrinal legal analysis and a case study approach, the research explored how laws such as the banking and financial services Act 2017 and the competition and consumer protection act 2010 are applicable to digital lenders. The study drew on the case of Charles Chihinga V new future financial company limited as a foundational example of the legal treatment of disputes between consumers and financial service provider. It also integrated findings from regulatory reports, academic literature, and policy papers to evaluate enforcement gaps and consumer vulnerabilities in the digital lending ecosystem. To answer the question of whether the Acts properly tackle the challenges, risks and consumer protection concerns associated with digital lending. We examined the five Acts. The examination was done by the author of the research by looking at the provisions in the Acts that where relevant to the regulation of digital lending and using questionnaires that where field in by ZICTA and BOZ knowledge intellectuals. The examination by the author and the questionnaires looked at the interconnection of ZICTA, ECT AND BOZ in regulating digital financial service providers and weather the relevant provisions adequately resolve the challenges brought within the digital lending market. The results of the analysis showed that though there existed some provisions that protected users from some of the financial lending related challenges, most of the provisions did not include digital lenders and consumers from these challenges. This study contributes to the growing body of knowledge on fintech regulation in Sub Saharan Africa and offers practical recommendations for aligning financial innovation with consumer protection.