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A civic group, Justice for Zambian Citizens Against Predatory Lenders (I-ZAP), has raised alarm over what it describes as a “national crisis” — the rampant exploitation of citizens by unlicensed online loan platforms operating illegally across the country.
Speaking at a press briefing in Lusaka on Friday, I-ZAP leader and good governance activist, Daimone Siulapwa, said investigations, corroborated by the Bank of Zambia (BoZ), have confirmed that nearly all online lenders currently operating in Zambia are unlicensed and therefore illegal.
“The Bank of Zambia has confirmed that none of these online loan platforms are licensed or authorized to offer lending services in Zambia. They have no legal standing to do business or demand repayment from citizens. Unless a company can prove it is licensed under Zambian law, it is operating illegally,” he said.
Siulapwa said the proliferation of unregulated digital lenders has led to widespread harassment, financial manipulation, and emotional trauma, with some cases reportedly linked to depression, family breakdowns, and even suicide.
He further blamed the situation on the outdated Money Lenders Act, which he said has created a regulatory vacuum.
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“This gap has led to excessive interest rates, harassment, privacy violations, and emotional trauma. It is shocking, unacceptable, and must be corrected urgently,” he emphasized.
According to I-ZAP, loans issued by illegal lenders “have no legal enforceability,” meaning citizens are not obligated to repay them.
The group urged borrowers to only deal with lenders registered with PACRA, ZRA, and ZICTA.
I-ZAP has since called on ZICTA to establish a dedicated hotline for victims of digital lending harassment and to investigate Airtel and MTN, which it claims are facilitating unregulated transactions.
“Our investigation has shown that most of these illegal lenders originate from East Africa, especially Kenya and Uganda. They are transacting through Airtel and MTN platforms, bypassing the Bank of Zambia, PACRA, ZRA, and ZICTA.
“This places Airtel and MTN at the center of this illegal financial ecosystem,” he said.
He revealed that the organization was considering class-action legal proceedings to recover financial losses suffered by affected citizens.
“If any citizen has been blacklisted for failing to repay illegal loans, we demand their names be cleared within 14 days or we will take legal action,” Siulapwa warned.
He reminded Zambians that no lender—legal or otherwise—had the right to violate their privacy or dignity.
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