By HELEN ZULU –
THE Bank of Zambia (BoZ) in collaboration with the Zambia Electronic Clearing House (ZECHL) are expected to start the implementation of the first phase of the National Financial Switch (NFS) next year.
ZECHL chief executive officer, Willie Chishimba said the NFS project which intends to interconnect all commercial banks’ electronic payment system is expected to be implemented in January 2018.
The project is also meant to increase financial inclusion since all payment systems will be interconnected thereby lowering transaction costs.
He said the Automated Teller Machines (ATMs) and Point of Sale (PoS) machines for the project would be up and running  by January next year.
Mr Chishimba said the project had two phases – the first phase would be implemented next year while the second one would be executed by the commercial banks soon after the first development.
He said the implementation of the NFS would help to facilitate interoperability.
He was speaking in Lusaka at the masterclass training for business reporters organised by the Zambia Institute for Policy Analysis and Research (ZIPAR) and Financial Sector Deepening Zambia (FSDZ) recently.
“Next year, we should be up and running on ATMs. We are going live somewhere in January next year. We were supposed to operate the ATMs this year.
“The system is of international standards. It is based on very solid security. Customer education is, however, needed. Let us use more secure and efficient methods of making and receiving payments,” he said.
Mr Chishimba said the NFS which was also meant to amplify digital payments was for small-value transactions.
He said the project would support commercial banks as it would encourage their clients reduce on handling cash thereby providing the economy with liquidity.
“An economy grows on the velocity of money. The switch will also reduce money laundering because a cash economy leads to money  laundering,” he said.