Bank of Zambia



Dr. Denny Kalyalya

Headquarters Lusaka 10101
Established 1964
Currency Kawacha - ZMK (ISO Code )

As the view grew stronger that a currency board was inappropriate, the Bank of Rhodesia and Nyasaland was established in March, 1956. It was equipped with the full powers of a conventional central Bank such as conducting monetary policy, banker to government and commercial banks, manager of foreign exchange reserves and so on. The bank was also empowered to lend to the territorial and the Federal governments up to a limit based on their expected revenues in that fiscal year.

The Bank of Zambia was established to take over from the Bank of Northern Rhodesia on the 7th of August,1964 although its Act was only passed in June, 1965. The Bank of Northern Rhodesia was itself constituted from the Lusaka branch (established in September, 1961) of the Bank of Rhodesia and Nyasaland after it broke up together with the Federation of Rhodesia and Nyasaland on the 31st of December, 1963.

The Bank started operations with about 100 staff organised around only two departments, namely the Chief Cashier's or General Manager's department and the Secretary's department. The former was responsible to the Governor for monetary policy implementation, currency issue, banking, government securities, exchange control and foreign exchange management. The Secretary was responsible for personnel, administration, internal auditing and the Board.

With time, the number of departments at the Bank started to increase. One of the earliest to be established was the Research Department in 1967. The Operations Department was created in 1976, and later, especially in the 1980s, the pace accelerated when other departments such as Personnel and Administration (1977) Exchange Control. Import and Export Control, Estate and Properties (all in 1981) were created. They were followed in 1982 by Banking and Currency, Small Scale Industries, Inspection and in 1984 by National Debt, Transport, and Government Securities.

The increase in the number of departments at the Bank partly reflected the increased demand on the functions which it had to perform, most of which centred around administering government imposed regulations such as exchange controls and import and export controls. In turn there was higher demand by the Bank on support services for these core activities. In addition, however, it is also true that the Bank, like many other organisations both inside and outside Zambia then, did not make hard distinctions between core and peripheral responsibilities and, hence, utilise resources accordingly. To give a concrete example, it was an accepted practice in Zambia that employers should find accommodation for their employees and in some cases, even furnish that accommodation. Institutions therefore acquired substantial property which required manpower and organisation to manage. In some cases there were economic arguments, which were considered sound then, which led to organisational expansion. In the foreword to Ten Years of Banking in Zambia, a Bank of Zambia publication, former President Kenneth Kaunda wrote as follows:

"Our highest priority now is the rapid development of the rural areas where the masses of our people live. In this connection, I am confident that the Bank of Zambia would not restrict itself to the orthodox central banking concept of monetary stability only. I would like to see the banking system as a whole take the challenge and devise effective tools in order to facilitate the dawn of a new era of prosperity for the rural areas in particular and the other sectors of the country in general ...,"

As already indicated above, this was an acceptable position at the time in the developing world and one of its strongest proponents among practitioners was the Reserve Bank of India. Applied to Zambia, it included the establishment of a department for Small Scale Industries and, later, a credit guarantee scheme. The expansion of the functions of the Bank saw a rise in the number of staff from 400 by 1975, to 1 226 in 1988 and to 1 400 in 1994. The Bank premises therefore had to be extended to accommodate the numbers. The new building (currently corporate head office) opened in 1975 while the Regional office in Ndola opened in 1979. Annex buildings were subsequently added to Lusaka and Ndola.

This expansion resulting from this extension of functions was unfortunately, not underpinned by a strong organisational structure. Instead, and in the words of a consultant in 1989. "The Structure of the Bank has evolved over time more in response to staffing factors than the real needs of the Bank". One major cause for this has been the extreme rapid turnover of Governors. Since 1964, there have been ten appointments to the post (excluding the current Governor) over a period of 28 years making an average tenure of 2.8 years for each. With instability at the top, continuity and strategic planning for the future were bound to suffer.


Last updated : May 5, 2014


Structure of the banking industry as at end 2005: The Bank of Zambia and 13 commercial banks. 8 foreign owned, 4 owned by local private investors, 1 by the Zambian Government, and 1 jointly owned by the Zambian Government and the Indian Government.


Non-bank Financial Instituions as at end 2005: 9 leasing companies, 3 building societies, 1 development bank, 1 savings and credit bank, 32 bureaux de change and 3 micro-finance instituions. Regulated and supervised by the Bank of Zambia under the Banking and Financial Services Act of 200.

Capital Market

Stock exchange: Lusaka Stock Exchange (LuSE)

Investment Opportunities

Zambia is richly endowed with natural and agro-mineral resource base, which present significant investment potential and opportunities. Vast expanses of rich undeveloped land and natural habitat with free-flowing and easily accessible water provide extensive potential for tourism investment and agriculture production. All this is complimented with a ready supply of quality labor force at competitive rates and a stable political environment.

Agriculture Sector

Enormous potential to become a major grower and exporter of agricultural and horticultural produce. An abundance of quality land, water and ideal climate all suited to an amazing range of agricultural products. Only 15% of the 60 million hectares of arable land is under cultivation.

Manufacturing Sector

Opportunities for further diversification exist, particularly in agro-processing, wood and leather products. Profitable avenues are also abounding in food processing and textile production and mineral products. To help realise this potential Government established a Duty Drawback Scheme (DDS) under which manufacturers producing export goods are entitled to claim a refund for duty paid on raw materials used in the production process. The Government is in the process of implementing a new initiative called the Multi-Facility Economic Zone (MFEZ) which will focus on special industrial zones for both export and domestic oriented industries.

Tourism Sector

Untapped tourism opportunities exist in all the 19 National Parks and 34 game management areas as well as the 23 million hectares devoted to the conservation of an amazing variety of animals. Major attractions include the Victoria Falls (one of the seven natural wonders of the world), the Kariba Lake (the largest man-made lake in the world), the Kalambo falls (one of the deepest falls in the world), Lake Tanganyika (the deepest lake in Africa). Specific areas of investment in this sector include:

  • Game ranching;
  • Provision of accommodation (i.e. high quality five and four star hotels, Lodges and Camp sites near the popular tourist areas);
  • Transport service - Investment potential exists in air charters in form of helicopters and/or small planes to service game areas;
  • Adventure holiday packages;
  • Organised tours;
  • Out door sports facilities (golf courses and stadia); and
  • Zambia’s cultural heritage.
File Statistics for Zambia42.19 KB
Central Banks: 



Southern Africa, east of Angola, between latitudes 8°S and 18°S and between 20°E and 35°E, landlocked with eight neighbours ( Angola, Namibia, Botswana, Zimbabwe, Mozambique, Malawi, Tanzania, and Democratic Republic of Congo)

Area total: 752,614 sq Km Land: 740,724 sq km Water: 11,890 sq km

Population: 11,089,691(2005 estimate)

GDP per capita: K2,923,474 (equivalent to US$654.90)

Population Growth Rate: 2.11% (2006 estimate)

Birth Rate: 41 births/1,000 population (2006 estimate)

Death Rate: 19.93 deaths/1,000 population (2006 estimate)

Sex Ratio

At birth: 1.03 males/female Under 15 years: 1.01 males/female 15-64 years: 0.99 male(s)/female 65 years and over: 0.74 males/female total population: 0.99 male(s)/female

Infant Mortality Rate

Total: 95 deaths/1,000 live births

Life Expectancy at Birth

Total population: 50 years


Noun: Zambian


English is the official language and is widely spoken. There are 73 dialects in Zambia, including Bemba, Tonga, Nyanja, Lozi, Luvale, Lunda. Literacy

Total population 55%

Major Religions

Christianity, Islam-Hindu and indigenous beliefs

Capital City and Weather

Lusaka (Altitude 1,277 meters above sea level) hotest month, October (18°C to 31°C); coldest, July (9°C to 23°C) and wettest, December (231 mm). In a normal year, the rainy season lasts frm October to April.

Climate: Tropical

Terrain: Mostly high plateau with few hills and mountains

Natural Resources

Copper, cobalt, gold, nickel, diamonds, coal, emeralds, uranium, water.

Land Use

Arable land: 60 million hectares. Only 15% of arable land is cultivated.

Major Tourist Attractions

Victoria Falls (one of the 7 natural wonders of the world); Kariba Dam (one of the largest man-made lake); Kalambo Falls (one of the deepest falls in the world); 19 National Parks and 34 game management areas as well as 23 million hectares devoted to the conservation of an amazing variety of wild animals and bird species. The country also holds a number of traditional ceremonies including the Kuomboka, Ncwala, Likumbi Lyamize, Shimunenga, Mutomboko.

Time: +2 hours of GMT

International Dialing Code: +260

Internet Domain: .zm

Measures: Metric system

Currency: Zambian Kwacha (ZMK) = 100 Ngwee

Central Banks: 

Zambian Kwacha

Data : not available

Central Banks: