Zambia seeks global financial reform, touts remittances as pillars of sustainable development

Zambia has called for fundamental shifts in the global financing agenda, urging world leaders and development partners to recognize the untapped potential of remittances and diaspora contributions as strategic tools for inclusive and sustainable development.

Ministry of Foreign Affairs and International Cooperation Permanent Secretary, Etambuyu Anamela Gundersen, emphasized that Africa was not lacking in solutions but was constrained by a global financial architecture that offers limited fair opportunities.

Gundersen made the call in Lusaka on Thursday, during a virtual high-level event in the lead-up to the 4th International Conference on Financing for Development (FfD4) in Seville, Spain.

With Sub-Saharan Africa receiving over $50 billion in remittances in 2023, Gundersen noted the vital role these flows play in countries like Zambia, supporting families, financing education, promoting entrepreneurship, and strengthening informal safety nets.

She, however, raised concern that remittances continue to be undermined by high transaction costs, fragmented regulatory frameworks, and underdeveloped investment pathways.

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“There is a need to shift from viewing these flows as private transfers to recognising them as drivers of investment, inclusive growth, and economic resilience,” Gundersen said.

She stated that as co-facilitator of the upcoming FfD4, Zambia was advocating for deeper reforms in the global financial system that will enable African nations to better leverage domestic and diaspora resources.

“This includes pushing for fair taxation rights, innovative financial instruments such as diaspora bonds, and scalable public-private partnerships involving diaspora communities,” Gundersen said.

She also pointed to Zambia’s own cross-ministerial efforts, led by the Ministries of Foreign Affairs and Finance, the Bank of Zambia, and tax authorities to actively engage the diaspora not only as remitters but as investors, innovators, and drivers of change.

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