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The latest TransUnion Zambia’s Q1 2026 Consumer Pulse Survey has revealed that Zambian households are feeling more optimistic about their finances, but the cost-of-living pressure, limited credit access and widespread digital fraud continue to weigh on them.
The survey found that 40 percent of Zambians reported earning more than they did at this time last year, up from 34 percent in 2025 and looking forward, 84 percent of consumers expect their incomes to grow in the next 12 months, a slight increase from 82 percent last year.
Released in Lusaka on Thursday, the survey showed that household income trends over the past three months also showed signs of stabilization and the share of consumers reporting no change in income fell to 31 percent from 38 percent, while the proportion reporting a decline held steady at 29 percent.
Despite the improved sentiment, financial strain remains acute for many families with more than a third, 37 pervent, saying they expect they would not be able to pay at least one bill or loan in full over the coming months.
“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,” said Mildred Stephenson, Chief Executive Officer of TransUnion Zambia.
Stephenson said this reflected a growing focus on affordability and long-term financial resilience and to manage commitments, consumers are adopting multiple coping strategies.
The survey found 45 percent have taken on temporary or gig-based work, 42 percent are paying only partial amounts they can afford, 29% are borrowing from friends or family, and 26 percent were drawing on savings.
“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.
Spending discipline has also tightened with some 54 percent of respondents saying they cut discretionary spending in the past three months and within that, 68 percent reduced dining out, 46pervent scaled back travel, and 41percent spent less on entertainment.
Demand for credit remains resilient despite the challenges and overall, 41 percent 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.
“Collectively, these findings reveal a continued disconnect between the importance consumers place on access to credit and their confidence in navigating the credit system,” she noted.
Among those intending to borrow, the focus was on essentials with some 45 percent plan to seek a personal loan, 19 percent student financing, and 13 perceny car finance to support mobility and opportunity.
The survey noted that converting intent into approved credit, however, remained difficult with more than half, 55 pervent, of consumers who considered applying ultimately decided not to proceed.
The main barriers cited were the high cost of credit at 30 percent, concerns about income affecting approval at 29 percent, and doubts that refinancing would deliver savings at 21 percent.
Read More: Zambia targets 82% domestic financing of 2026 national budget
Digital fraud was another persistent concern, as more Zambians transact online, 81 percent reported being targeted by at least one digital fraud attempt in the three months preceding the survey, a figure unchanged from 2025.
“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,” Stephenson said.
She said as threats became more sophisticated, financial institutions had an important role to play in helping consumers understand the steps they could take to protect themselves from fraud.
Stephenson said the most common threats included money and gift card scams, smishing, phishing, vishing, and fraudulent seller activity on online platforms.
In response, 67percent updated their passwords and 42 percent added stronger protections such as multifactor authentication.
“Yet 17percent took no action, with 71percent of that group unsure what steps to take and 21percent feeling overwhelmed by cybersecurity information,” she said.
Stephenson said the findings pointed to a market in transition, with growing optimism about income offset by continued pressure on household budgets, constrained access to affordable credit, and elevated risks in the digital economy.
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