Mission

The mission of the Bank of Zambia is to formulate and implement monetary and supervisory policies
that achieve and maintain price stability and promote financial system stability in the Republic of Zambia

ZAMBANKER
A Bank of Zambia Journal SEPTEMBER 2010
“Stop HIV/AIDS,
Keep the Promise.”

Zambia's copper earnings The first-half yearly copper

exceed US $2.5bn
output in 2010 puts the
country on course to hit its
annual target of 750,000mt.
In the first half of this year, the
country exported 392,334mt
of copper compared with the
311,933mt exported during
By Zambanker reporter exceeded US $2.5 billion, with increased production. of this year averaged US the same period in 2009.
Zambia has recorded an the rise being attributed to Zambia earned about US $2.5 $6,571 while in 2009 the Commenting on the
increase of over 100 percent increased copper prices on the billion from copper exports in average price of the mineral in development, BoZ Assistant
in copper earnings in the first international market and the first half of this year the corresponding period was Director - Macro economic
half of 2010 in comparison improved output. compared with the US $1.2 US $3,720. Analysis Division in the
with the same period last year, Most of the existing mining billion earned in the same Copper production also rose to Economics Department, Dr
hitting the US $2.5bn mark. companies increased their period last year. 393,309 metric tonnes (mt) in Francis Chipimo said the
Bank of Zambia preliminary output of copper while new Data obtained from the the first half of 2010 country was on course to
data show that the country's players in the copper Economics Department of the compared with 339,309 produce more base minerals
earnings from copper sales in business, like Lumwana Bank of Zambia show that the tonnes produced in the same this year compared to 2009.
the first half of this year Mining Company, added to the price of copper in the first half period last year. Dr Chipimo said increased
output resulted from the
resumption of operations by
most mines while new mines
were to ramp-up production Dr Chipimo
in view of increasing
international copper prices. biggest cobalt plant, and
He said resumption of increasing output at Lumwana
operations at Chambishi Mine were expected to prop up
Copper Smelter, the country's metal productions this year.

Interest rate determinants revealed

By Zambanker reporter conduct of monetary policy
The Bank of Zambia has following Government's
revealed that the regulatory intention to shift the conduct of
cash reserve requirements, monetary policy from monetary
which include the statutory aggregate to interest rate
reserve ratio, core liquid asset targeting as announced in the
ratio, the weighted average 2010 budget.
deposit rate and taxation, were As part of the research, a survey
some of the common factors was undertaken with the aim of
that banks take into account understanding the interest rate
when determining base decision-making process in
lending rates. Zambian banks. Understanding
Acting Director - Economics Dr of the banks' interest rate
Emmanuel Pamu revealed decision-making process was
these results at a workshop expected to assist the Bank in
hosted to disseminate results of the determination of an
a survey conducted to identify appropriate policy rate and in
qualitative and quantitative ascertaining the transmission
factors that commercial banks channel through which the
consider in making decisions policy rate would be most
regarding their base lending effective.
rates at Taj Pamodzi Hotel in Understanding why lending
Lusaka recently. interest rates were high in
Other factors which were Zambia was also an issue of
First Republican President Dr. Kenneth Kaunda paid a visit to the Bank of Zambia stand at the Lusaka Agricultural and Commercial Show. Above, Bank considered significant in the great policy interest.
staff pose for a group photograph with Dr. Kaunda in the BoZ stand determination of base lending Dr Pamu pointed out that the
rates were treasury bill and survey results showed that only
GRZ bond yield rates, operating one bank took the interbank
costs, return on equity and the rate into account when

'Help us promote public welfare' cost of non-performing loans.

Qualitative factors that were
highlighted included credit risk
deciding on what rate to set,
while four banks indicated that
the BoZ overnight facility rate
By Zambanker reporter affecting it would reduce the the laws they enact would compromised or nullified by premiums due to large was taken into account.
The Bank of Zambia (BOZ) risk of a new law potentially have on its objective to decisions on other areas of information asymmetries and Only half of the banks surveyed
has appealed to Members of harming and restricting the promote public welfare. economic policy. the high default culture, as well considered inflation explicitly
Parliament to continuously ability to achieve its mandated She explained that BOZ laws First, exchange rate policy as the demand and supply for in their determination of base
create conditions that objectives. codify the roles and decisions can significantly credit and industry trend in lending rates, although some
uphold the implementation “Most importantly, such responsibilities, set out constrain options for base lending rates. banks indicated that inflation
of policies aimed at consultative rights would objectives, specify the degree monetary policy,” she said The Bank of Zambia embarked was taken into account when
advancing public welfare. specify that we are of independence and establish She said that reforms of on a research to assess the calculating real returns. The
The Bank adds that such continuously involved in the nature of the central m o n e t a r y p o l i c y feasibility of an interest rate Director, however, pointed out
conditions would help to decisions in the financial bank's accountability. She said arrangements were targeting framework in the To Page 9
create a climate for system, even when the the laws also specify the essentially designed to
consistency among decisions are made by others,” powers of the central bank, enhance the central bank's
INSIDE THIS ISSUE

Stakeholders examine draft BoZ Act Page 2

monetary, exchange rate, she said. including the power to enter ability to maintain price
fiscal and structural policies. Dr Kankasa-Mabula explained into transactions and take stability, but may not always Northern region tours continued Page 3
Speaking during that although the powers and administrative actions such as have been accompanied by Develop payment systems, urges Fundanga Page 4
deliberations of the BOZ responsibilities of the BOZ issuing regulations and reforms that bring greater
2010 MPs seminar in were constituted under a levying charges and fines. discipline to fiscal policy. FINSCOPE 2009 Survey Completed Page 5
Siavonga, Bank of Zambia specific piece of legislation, its Dr Kankasa-Mabula added Dr Kankasa-Mabula stated
SADC ICT gurus look ahead Page 6
Deputy Governor- powers and responsibilities that the laws also determined that financial system stability
Administration, Dr. Tukiya may be affected by other laws the central bank's relationship would, consequentially, result Consistent Performance vital - Kankasa-Mabula Page 7
Kankasa-Mabula said including constitutional with the government and its from the broad social and
providing the central bank provisions, hence its appeal degree of autonomy. intellectual consensus that Zambia attractive investment location-Chinese bank Page 8
with the right to be for Members of Parliament to “The independent authority to low, stable inflation provides Kalyalya commends BSA Page 9
consulted about legislation consider the implications that run monetary policy can be To Page 5
BoZ Madalas discover a winning formula Page 16
 NEWS

Stakeholders examine draft BoZ Act of the act, representatives of central banking and these
from Government ministries, being independence,
other regulatory entities and accountability and
professional bodies transparency.
representing lawyers, Some of the outstanding
accountants and economists features of the draft Act
as well as BoZ representatives include the institutional
who will administer the act. arrangements of the Bank
The Deputy Governor – including the appointment of
Administration mentioned governors, directors and
that the Bank had initiated auditors, internal budgets,
law review to the current reports, reporting
central bank legislation to requirements, preservation of
respond to the demands of the confidentiality and handling of
era. The exercise resulted in a possible offences, adequate
'home grown' draft Bank of mechanisms for good
Zambia Act. governance and security of
She was pleased to report that tenure for governors as well as
the draft had incorporated provisions relating to
principles of international adequate power and
best practice. independence.
The 2002 joint IMF and World The draft Act also looked at the
Bank assessment of Zambia's application of monetar y
financial sector under the policies, including the role of
Financial Sector Assessment lender-of-last-resort, interest
Programme (FSAP) raised and exchange rate policies,
awareness of various and Bank of Zambia's
weaknesses in Zambia's involvement in money and
financial system which foreign exchange markets.
needed to be addressed. For Dr Kankasa-Mabula said the
this purpose, the Government Bank tabled the draft Act
Participants of the stakeholders’ workshop pictured following deliberations attentively approved the establishment of before stakeholders to
the Financial Sector maximise its consultative
By Zambanker reporter legislative process. Central Bank Model Law but at Mulungushi International
Development Plan (FSDP) to process by taking into account
The draft Bank of Zambia Act Deputy Governor – mindful of the fact that Conference Centre on 21st address these weaknesses all views on the layman's draft.
has been finalized and Administration Dr Tukiya provisions had to relate to the September 2010. a n d i m p l e m e n t She further encouraged
presented to various Kankasa - Mabula said the local circumstances. The workshop was attended recommendations. One of the constructive debate and
stakeholders for further Bank had embarked on a Dr. Mabula said this when she by representatives from recommendations adopted assured all stakeholders that
review before submitting to process of reforming and officially opened the financial service providers was the need to modernise their views would be taken
the Ministry of Finance and modernizing its legislation stakeholder's workshop on the whose operations stand to be and harmonise financial into account before the draft
National Planning for the relying heavily on the SADC draft Bank of Zambia Act held affected by the administration sector legislation which could be transmitted to the
included the BoZ Act. Ministry of Finance and
The other reason that National Planning.

BOZ Board gets new members precipitated the need to have

the Act reviewed was the task
given to the SADC Committee
'Therefore I call upon all
participants to openly debate
this draft Act and share
for Central Bank s (CCBG) to opinions which the Bank can
develop harmonised benefit from in its effort to
legislation for SADC Central develop a comprehensive law,'
Banks. she added.
Zambia being a member After submitting to the
country participated in this Ministry of Finance and
process which led to the National Planning, the
creation of a Central Bank Ministry would be responsible
Model Law. for initiating the legislative
Member countries were process that shall see the
expected to domesticate the layman's draft transformed
provisions of the Model Law into a Bill and tabled before
which enshrined three pillars Parliament for debate.

BoZ donates to
Kalabo High School
By Nimon Muleya Mr. Mayondi appealed to the
The Bank of Zambia (BoZ) has public not to relent in
re-iterated the need for ploughing back into the
adequate investment in the community that initially
education sector if sustainable assisted them to be whom
economic development is to there were today.
be made possible. Meanwhile, Former Kalabo
Dr Musokotwane Senior Chief Imwiko Anang'anga Dr Chiwele A n d We s t e r n P r o v i n c e Secondar y/High School
Permanent Secretary Seth Pupils' Association
By Zambanker reporter bestowed upon me, I have Institute of Administrative as Marketing Manager from
Muleya has called for public (FoKaSHA) chairperson
The Minister of Finance and decided to appoint you as Accounts, formerly the 1979 to 1983.
Other posts of note that the private partnership in order to Mundia Nalishebo said his
National Planning, Dr Director of the Bank of Zambia Institute of Book Keepers. This
Situmbeko Musokotwane has Senior Chief has held assist Government in meeting association is committed to
Board of Directors” he said. is a professional accounting
appointed Senior Chief Senior Chief Anang'anga is the course for three years at include being Provincial the Millennium Development mobilizing resources for
I m w i ko A n a n g ' a n g a o f first ever traditional leader to Evelyn Hone College. He Manager at Namboard in Goals (MDGs) their former school.
Lukulu, Western Province as be appointed Director of the further has a Cambridge Monze, Provincial Produce Bank of Zambia Head of Public Mr. Nalishebo pledged that
a member of the Board of Bank of Zambia Board since its School certificate from St Supervisor at Namboard Relations, Kanguya Mayondi his association is geared to
Directors of the Bank. In his establishment. Among the Johns Secondary School in based in Ndola and Assistant said BoZ attaches great do many other things in
letter of appointment to numerous qualifications, the Mongu and he completed his Accountant at Namboard in importance to education as a order to help their former
Senior Chief Anang'anga, the Senior Chief is a holder of a earlier education at Lukulu Lusaka. tool to achieving economic School, Kalabo High School.
Minister said the new Board post graduate diploma in Primary School. And welcoming the Senior development. “We're looking back and
member shall be responsible agriculture development from In terms of work experience, Chief to the Bank of Zambia Mr. Mayondi said this when he want to give back to our
for the formulation of policy the University of London, a Senior Chief Ananag'anga family, Bank Governor Caleb presented a donation of 89 school. Firstly, we want to
and will contribute to the diploma in Trade Promotion worked for the Western Fundanga congratulated the mattresses to Kalabo High get the very things that
general administration of the and Export Marketing from Province Cooperative Union Senior Chief for the School. would give hope to the
Bank under Section 9 (1) of Helsinki School of Economics, (WPCU) as General Manager appointment and trusted “The idea of giving hope to our current crop of pupils at
Cap 360 of the Laws of a diploma in Agricultural from 1983 to 1993. He further that he would assist the current crop of pupils today is Kalabo High School.” he
Zambia. Business Management from worked for the Produce and Bank to provide the vital very important, to a point said.
The Minister hoped that the the Mananga Agricultural Projects Division at Namboard leadership as expected of the
perhaps that can not be over Mr. Nalishebo appealed to all
Senior Chief would College in Swaziland, and a Headquarters as Deputy Board in the maintenance of
price stability and in the emphasized. Education is an former Kalabo High School
unreservedly discharge the diploma in Cooperative Theory Divisional Manager from 1975
functions and live up to the strengthening and important thing. We all would pupils in the country to join
and Practice from the Plunkett to 1979, after which he went
challenge. Foundation, Oxford University. on to work for Zambia development of the banking not be here speaking foreign his association and assist in
“Pursuant to the powers He is also a member of the Horticultural Products Limited To Page 8 languages if it had been not improving the status of the
for education.” he said. To Page 6

A BANK OF ZAMBIA JOURNAL 2 ZAMBANKER SEPTEMBER 2010

 News

Northern region tours continued

By Zambanker reporter urged the Bank of Zambia to which he said were doing agreement that a few of the promise will be communicated the Bank of Zambia and also to
Director Regional Office Mr look into the issue seriously as relatively well. 'I am also in banks need a facelift which I to the proper authority within the banks,' Mr Mulomba added.
Morris Mulomba, who has it was not reflective of the kind
been conducting tours of of development people wanted
commercial banks serviced by to see in Solwezi and the
Regional Office, recently took a Province as a whole.
tour of banks in North-Western The Bank of Zambia entourage
province. Among the banks was further informed that
visited are Finance bank in people from towns like
Mwinilunga and seven other Chavuma where there were no
commercial banks in Solwezi commercial banks had to
which included Standard travel long distances to
Chartered bank, Barclays Kabompo or Solwezi to collect
bank, Investrust bank, their salaries and bank their
Cavmont Capital bank, Finance money.
bank, Zanaco and Stanbic Such transactions were not
bank. only dangerous and costly but
Mr Mulomba who was in the also extremely unfortunate.
company of Senior Inspector He urged the Bank of Zambia
Compliance Mrs Margaret to try and encourage
Siwale and Protocol Officer Mr commercial banks to take up
Lombe Mulanda also visited the challenge of opening
Kansanshi mine and paid a Banks. Mr Hazemba also
courtesy call on the provincial mentioned that there were
administration. prospects of two banks moving
During a courtesy call at to Mufumbwe which was good
Cabinet Office, the Deputy news for the Province. He was
Permanent Secretary, Mr also happy that one bank had
Nkolola Hazemba stressed the opened a branch in Shoprite
need to have more commercial Solwezi. Mr Mulomba
bank branches opened in the informed the District
province especially that the Administrator that it was in
economy was doing well. The the Bank of Zambia Strategic
opening of Kansanshi and plan to have the public's access
Lumwana mines had brought a to financial services increased
lot of economic growth in the as currently only about 38% of Participants to the Stakeholders Workshop on the BoZ Act review, which took place at the Mulungushi International Conference Centre Lusaka recently
area. Zambians had access to are caught registering in readiness for the deliberations
'There are still a lot of business financial services. The
opportunities in the area but as Regional Director alluded to
you can see all around Solwezi,
we do not even have a Bureau
De Change,' he said.
the fact that commercial banks
had a major role to play in this
important strategic focus by
Security official seize K255m in Chipata
However, Mr Hazemba was ensuring that they reached as
happy with the number of many districts as possible
commercial banks in Solwezi within the nation. He further
and the various products they assured the provincial
were offering which he said administration that the Bank
had really empowered the of Zambia would do all it could
people of Solwezi. He added to encourage commercial
that he was happy with the banks to take up the challenge
loans people were getting from of opening more outlets not
the commercial Banks and he o n l y i n N o r t h -We s t e r n
hoped that they were putting province but throughout the
them to good use. Mr Hazemba country. However, he admitted
added that the newly that this was not easy because
introduced salaried loans were banks, like any other
very popular among civil businesses, wanted to make
servants who were busy profit and would only move
constructing houses. into an area where they felt
Nonetheless, the Deputy they would be able to get a
Permanent Secretary said it good return out of their
was very saddening to see investment. Mr Mulomba
some banks operating in what further pointed out that banks
he termed as “illegal should look at long-term
structures”. He said he wanted business growth and not
to see banks take up the concentrate on short-term Mr. Norbert Mumba (r) and other members of the team inspecting Mamarula Lodge in Chipata in readiness for the signing of the tripartite agreement
responsibility of putting up profits if this strategy was to be
By Zambanker reporter legalized system, which would Reserve Bank Governor's Last year, Zambia and
serious structures. Mr attained.
The Zambia Revenue Authority allow for the exchange of Executive Assistant, Mr Ralph Mozambique signed a
Hazemba mentioned that it The Regional Office chief (ZRA), in conjunction with other currency among the three Tseka and Assistant Director – bilateral agreement that
was sad to see some banks expressed happiness with the security forces in Chipata, countries. In the recent past, Currency at the Bank of Zambia, facilitated the repatriation of
operating in shop-like representation of the seven recently thwarted a bid by some ZRA has seized money which Mrs Angela Chileshe. currencies between the two
structures or containers. He commercial banks in Solwezi, unscrupulous persons to was being exchanged illegally”, Also in the team were Mr Banji countries.
smuggle K255 million out of the Mr Siame said. He also said Milambo of the Non-Bank “In addition, the Bank is now
country. And a week earlier, traders would be encouraged to Financial Institutions discussing with Malawi on the

BoZ lauds cops ZRA with other security officials

in Chipata, seized 2.5 million
Malawian Kwacha which had
exchange their money at legal
points because there would be
no need to use a third currency
Supervision Department, Mr
Mwelwa Mwaba of Payment
Systems Division and Mr
possibilities of reaching a
similar agreement and that
there was to be a signing of a
By Zambanker reporter allow me to express our been brought into the country like the US dollar to change one Marvin Ilunga of the Public tripartite agreement among
Bank of Zambia (BoZ) has gratitude to the Police illegally. of the tripartite currencies into Relations division. the three central banks, as
commended the Zambia Police Command for responding The revelations were made to a another. The third currency The team was detailed to check well as bilateral agreements
(ZP) Command for continuing favorably to the request which technical team of central exchange causes traders some the border posts in Katete and between Malawi and
to promote the cordial was first made in June 2007. bankers from Malawi, losses which could be avoided Chipata, accommodation, the Mozambique, and Malawi and
relationship which exists The Bank relied upon the Mozambique and Zambia who by direct exchange of the venue for the signing ceremony, Zambia to facilitate this”, Mr
between the two existing relationship with the were in the Eastern province to regional currencies. restaurants, possible locations Mumba said.
organizations. Zambia Police Service as a fall make arrangements for the Preparations for the signing for official visits, the new train And the ZRA Station Manager
BoZ Acting Assistant Director back on experienced resource. signing of a tripartite ceremony, to take place in station in Chipata and other informed the team that the
agreement as well as bilateral Chipata, Zambia have reached facilities that would be of clearing of goods including
– Security, Kedrick Zombe said Since its establishment, the
agreements for the repatriation an advanced stage with a team interest during the visit. motor vehicles, was now
the secondment of the police Bank has continued to
of banknotes between the three of officials from the three Banks Mr Mumba's entourage was being done electronically at
officers to the Bank was as a collaborate and work very countries. having undertaken a pre- also tasked to sensitize relevant Chanida border and that
result of the rationalisation of well with the Police service.” The currencies involved in the signing tour of the possible authorities and interest groups taxpayers were no longer
the security functions to he said. planned tripartite agreement venue in Chipata. of the planned ceremony for the being asked to clear through
enhance the functions of Mr. Zombe added that assets are the Malawian Kwacha, the The Technical team, led by signing of the tripartite Mwami border after entering
security at the Bank. of the Bank needed to be Mozambican Metical and the Bank of Zambia Assistant agreement. Zambia.
Mr. Zombe said this at a protected in order to ensure Zambian Kwacha. Director–Regulatory Policy and At Chanida border, 120 And speaking to team
farewell dinner hosted in that operations of the Bank Mwami border post ZRA Station Liquidation, Mr Norbert Mumba kilometers from Chipata, the members after touring all the
honor of a contingent of were conducted in a safe and Manager, Mr. Victor Siame visited the Eastern Province to team informed ZRA officials possible sites, Mr Mumba said
eleven ZP Officers who secure environment. welcomed the planned lay ground for the signing that the Bank of Zambia had a lot of progress had been
successfully went through the “In order to achieve the Bank's agreement to legalise the ceremony planned for the released a circular to all made and that the final report
recruitment process and mission, which is to formulate exchanging of currencies fourth quarter of 2010. commercial banks and bureau would be made available to
commenced their duties with and implement monetary and between Malawi, Mozambique Others in the team were de change authorising the the respective Governors and
the Bank on 28th February supervisory polices that are and Zambia, adding that it had Mozambican Central Bank repatriation of banknotes their key staff before dates
2008. aimed at ensuring price and come at the right time. Assistant Director for Currency, between Zambia and could be set for the signing
“Before going any further, “There is need to have a Mrs. Benedita Guimino, Malawi Mozambique. ceremony.
To Page 5

A BANK OF ZAMBIA JOURNAL 3 ZAMBANKER SEPTEMBER 2010

 NEWS

Develop payment systems, urges Fundanga

By Zambanker reporter plays an important role in system and is a catalyst for value in the economy. functioning and developed that the regulation of
A well developed and enhancing and promoting creating efficient Bank of Zambia Governor, Dr. payment system is an innovative payment system
regulated payment system soundness in the financial transmission of monetary Caleb Fundanga said a well essential requirement for the products, aimed at ensuring
development of a market that the law contributes to
economy, as well as deep p a y m e n t s y s t e m

Regional Banks visit BOZ financial markets.

Dr Fundanga said this when
he officiated at a workshop
organised by the Financial
Sector Management
developments and
operations, also poses a
challenge to the MEFMI
region.
Dr Fundanga said MEFMI
Programme of the should also overcome
Macroeconomic and Financial challenges such as ensuring
Management Institution of that full utilisation of large
Eastern and Southern African value payment systems by all
(MEFMI), held on 12 July, stakeholders including the
2010 at Intercontinental government are made, and
hotel. ensuring that there is
“Equally important is its role effective cooperation
in the enhancement of the between different regulatory
conduct and transmission of authorities in the regulation
monetary policy. of payment systems.
C o n v e r s e l y, i n e f f i c i e n t He expressed happiness at
payment system operations the fact that the workshop
can be a channel for causing would address the key issues
distortions in the economy and challenges faced by
through inordinate delays in MEFMI through discussions
the monetary policy and lessons of experience.
implementation and in the “I am confident that the rich
settlement of financial discussions you are going to
transactions, which will hold and the lessons of
invariably prevent the central experience you are going to
bank from achieving its share will not only enhance
objectives of price stability your skills, but also bring out
and a sound financial sector,” pertinent issues that require
Dr Fundanga said. to be addressed when you go
He, however, observed that back to your home countries,”
the MEFMI region still faces a Dr Fundanga said.
lot of challenges with respect Dr Fundanga thanked the
to the development and North-West University in
oversight of payment system, South Africa, the South
notable among these being African Reserve Bank, and the
Members of the delegation from the Bank of Uganda, led by former Governor Emeritus Leo Kibirango (l) during a courtesy call on Deputy the regulation of non-bank Reserve Bank of Zimbabwe
Governor - Administration Dr. Tukiya Kankasa-Mabula (not in picture) in the Bank of Zambia boardroom
payment system providers, for releasing their officials to
By Zambanker reporter restructuring, reorganizing, Inevitably, it took the form of department was reorganized such as the mobile phone share their knowledge and
The Bank of Zambia has been fine-tuning, and downsizing of realignment by way of to have four divisions, which companies. experience at the workshop.
a hive of activity with several the BoZ was aimed at downsizing, arising from the were at the time Regulatory He further went on to state
central banks in the region transforming the Bank into a shedding off of peripheral Policy, Banks, Non Banks, and
sending delegations on modern central bank in line functions, thereby Foreign Exchange Agents. This
conducted study tours in
various fields that they
with other modern central
banks. She said for BoZ, this
concentrating on core central
banking. The number of staff
invariably resulted in the
expansion and enhancement of Moonga reaches for the sky in CIPS
consider important to their process had been more or less at the time reduced from 1,400 Inspection procedures. By Zambanker reporter
operations. Amongst the continuous from the early to 600 by the end of 1994. The On the legal side, Dr Mabula Bank of Zambia (BoZ)
central banks that visited the 1990's, while elaborating that gains made from this said the Banking Act was re- Assistant Director of
Bank of Zambia (BoZ) were before the 1990's, BoZ was rationalization exercise were enacted to the present Banking
Procurement, Kizzy Moonga
the Bank of Uganda, the Bank operating like any other acknowledged by the IMF, and Financial Services Act.
has been conferred with the
of Tanzania, the Reserve parastatal organization in the where the process was dubbed Earlier, the Reserve Bank of
Bank of Malawi and the Bank country. Positive steps to the 'Fall and Rise of the Bank of Malawi and the Central Bank of t i t l e o f Fe l l o w o f t h e
of Lesotho. transform the Bank were taken Zambia,” she explained. Lesotho sent delegations to Chartered Institute of
Recently, the Bank of Uganda in the early 1990's which She said in 1994, a further understudy the Bank of Purchasing and Supply (CIPS)
requested for a one-day coincided with a change in the restructuring exercise was Zambia's Risk Management (awarded by the United
study placement with the political dispensation in the carried out to align the system, as well as its Business Kingdom-based institution.)
Bank of Zambia. The Bank of country. organizational structure and Continuity Management Fellowship (FCIPS) is the
Uganda is in the process of She added that the BOZ was jobs to the Bank's strategic Frameworks. highest grade of membership
re-designing jobs and re- still unable to deliver the main objectives. The Bank, through the Risk available at the Institute and
engineering its structure and objectives for which it was The restructuring entailed Management department also is awarded as a hallmark of
processes in a bid to improve created, that is, price stability work on the organizational hosted three officials from the professional standing. It is
the efficiency and and monetary policy structure, salar y scales, Bank of Tanzania, who visited awarded in recognition of
effectiveness of service implementation. This was pension scheme, and staff the Bank from 19 - 23 October achievements within the
delivery. because the design of the placement, amongst others. 2009. The officials from the profession and is a definition
The purpose of the study structure was not in She elaborated that the Bank BOT visited the central bank of professional status, not
placement was to possibly conformity with the design to made a decision to outsource with the aim of familiarizing merely a reward for service.
buy into, and share with the enable the BoZ deliver on its some of its support services, themselves with the Bank of Mr. Moonga becomes the
BoZ business process and strategic objectives. such as retail banking, Zambia Risk Management fourth Zambian to receive
Human Resource systems, She said the BoZ undertook cleaning, catering, and estate Framework. this lucrative award.
institutional challenges and major rationalization or agency. This resulted in the The Bank of Tanzania recently Mr. Moonga is one of the
identify best practices to reorganization exercises in establishment of the General established a Directorate of oldest procurement
support the reorganization 1992, 1994 and 2004-2005, Services Department, which Risk Management and, with practitioners in Zambia, with
process at the Bank of which were aimed at was to direct and control the this in view, sent officials to
a vast experience in the
Uganda. The team comprised improving its operational technical functions of the Bank familiarize themselves with an
procurement field spanning
two Consultants, namely efficiency and effectiveness. pertaining to the property of already existing infrastructure
an unbroken record of 21
Governor Emeritus Leo These rationalization the Bank, Project contracts and by visiting the Risk Mr Moonga
Kibirango and Mr Robert programmes took the form of contracts related to equipment Management Department at years.
Akeny, and an Officer from consolidation, realignment, and materials procured by the BoZ. During their study tour, Prior to joining the Bank of Kitwe, being a holder of a
within the Bank, Mr Solomon reassignment of institutional Bank, as well as fleet the officials were oriented on Zambia family, Mr. Moonga post-graduate diploma of the
Oketcho. priorities, standardization, management. the following important worked for Zambia Chartered Institute of
Deputy Governor- specialization, mutual support Dr Kankasa-Mabula explained components of the Bank of Consolidated Copper Mines Marketing. This is all apart
Administration, Dr Tukiya or improved inter-operability that to strengthen the main Zambia Risk Management (ZCCM) as Assistant from being a CIPS
Kankasa-Mabula said during and greater cooperation within business of the Bank, the Framework: the Operational Superintendent and handled qualification holder.
the Ugandan delegation's and between departments. Financial Markets Department Risk Management; the ver y diverse and huge He is a full member of the two
courtesy call on her that the “Since rationalization is a was created and was aimed at Business Continuity procurement projects in the international professional
Bank of Uganda was in change process, in-between supplementing and Management; the Lender of then state-owned mining bodies, as well as the Zambia
Zambia to understudy the and after these programmes, complementing monetar y Last Resort; Financial Risk giant. Institute of Purchasing and
business process and human the Bank continued to take policy implementation. She M a n a g e m e n t Fr a m e w o r k In terms of academic Supply. He also has a
resources systems, share consistent improvement said a project was set up to focusing on Middle Office Bachelors Degree in Business
achievement and knowledge
institutional challenges, as actions to ensure that the gains strengthen the Bank operations, Open Markets Administration (BBA) and
enhancement, Mr. Moonga
well as identify best practices made were entrenched. The Supervision function in order Operations, Foreign Exchange recently acquired a Masters
to support the reorganization 1992 and the 1994 for it to meet international Intervention and Management informed the Zambanker that
he had also taught CIPS and Degree in Business
process at the Bank of rationalization processes were performance standards. of International Reserves; the
CIM (Chartered Institute of Administration (MBA).
Uganda. undertaken to address the Members of staff were hired to Project Management Office;
Marketing) courses in line The Zambanker congratulates
She explained that in the demands of the changed increase the number of and ICT Governance and
main, the goal of economic policy in the country. inspectors, and the COBIT. with his career path at the Mr. Moonga on his recent
Copperbelt University in achievements.

A BANK OF ZAMBIA JOURNAL 4 ZAMBANKER SEPTEMBER 2010

 NEWS

FINSCOPE 2009 Survey Completed demand and supply for Surveys is to provide delivery to their intended
financial services in Zambia. information that is central to customers. Dr Fundanga said
Since its inception, the the sound function of financial the findings would assist in
renowned FinScop project has markets and relevant to both identifying which legal, policy,
been providing annual service providers and policy regulatory or market issues are
insights into how consumers makers,” Dr Fundanga said. considered as obstacles to
source their income and He said similar surveys had growth, innovation and
manage their financial lives. also been undertaken in South competition.
In Zambia, the FinScop project Africa, Namibia, Botswana, He further said the expansion
is sponsored as a national Kenya, Uganda, Tanzania, and and improvement of financial
agenda under the FSDP Mozambique. access in the country was likely
programme, with funding He further said the findings of to contribute to employment
support initially provided by the FinScope Survey are, generation, economic growth,
cooperating partners and among other things, expected human development and
more recently by the private to play an important role in ultimately poverty reduction.
sector development reform profiling demand and needs of Dr Fundanga added that it was
programme. financial services in Zambia. imperative to fully understand
Dr Musokotwane said it was He added that the findings are the landscape of financial
however noted that there was expected to highlight new service provision in Zambia in
improvement in extending market segments and order to be able to open up new
financial services and opportunities which, in the market segments which for a
products, such as savings and long run, should trigger very long time had lacked
credit, through other formal innovation in product design access to financial services.
and informal non-bank by service providers and
financial institutions. On the
Hon. Situmbeko Musokotwane confers with Governor Caleb Fundanga during the official launch of the Finscope
overall, there was a marginal st
Zambia 2009 - Topline Findings Report at Hotel Intercontinental in Lusaka. Also present at the launch were
Mrs. Maya Makanjee (l), Head of Finmark Trust, Dr. Denny Kalyalya, Deputy Governor - Operations (2nd from l)and
Mr. Likolo Ndalamei, Secretary to the Treasury (3rd from r)
increase in financial access to
37.3% in 2009 from 33.7% in
Mirriam is 1 runner-up
2005.
By Cynthia Chiyabu FSDP, which was being economic environment. By Zambanker reporter who, among other issues,
He said government would
Minister of Finance and implemented as a programme Dr Musokotwane said five new Bank of Zambia's Mirriam M. provide extraordinar y
remain committed to increase
N a t i o n a l P l a n n i n g , D r. intended to address observed commercial Banks had so far Mutati from the Regional support and continually
this further, and in the
Situmbeko Musokotwane has weaknesses in the financial been granted licenses to Office in Ndola recently think of ways to streamline
medium term has at least half
said that access to a well- sector, ran for five years from operate during the initial of the adult population in scooped the 1st Runners-up processes, while improving
functioning financial system 2004 to 2009. phase of the FSDP period. Zambia having access to position in this year's Personal performance and output.
has the potential to “In view of various “In the non-bank financial financial services and Assistants Africa award Mr. Evarist Ahimbisibwe,
economically and socially outstanding issues and new institutions sector supervised products. ceremony held on September from the Ministry of Works
empower the poor and low developments arising from the by Bank of Zambia, the And speaking earlier, Bank of 24, 2010 at Sunbird Hotel in and Transport in Uganda
income people, as well as recent global financial crisis, number of market players Zambia Governor, Dr Caleb Lilongwe, Malawi. received the overall award of
micro-enterprises. the Government approved a increased by over 100 per cent Fundanga said the role played The awards are held in the 2010 Personal Assistant
Dr Musokotwane said despite three-year extension under a over the last five years with by the financial sector in recognition of the important of the Year award and walked
the broad consensus on the second phase of the FSDP to further applications still being Zambia's economic role played by Personal away with US$1500 and
importance of financial run until December 2012,” Dr considered. development had been limited Assistants in corporate accommodation gift
inclusion as, among others, a Musokotwane said. This has largely been as a over the recent years with the productivity. vouchers from Sunbird
poverty alleviation tool, it is He said the FSDP represents a result of new entrants in the sector being characterized by This is the fourth time the Malawi Hotel for two.
estimated that between 2 and strategy that was formulated microfinance and bureau de low financial intermediation awards are being held since its Zambia's Mirriam Mutati
3 billion people around the to address the cur rent change sub sectors, which has and high concentration of launch in 2007, with the won herself a laptop
world are still excluded from weaknesses in the Zambian also seen the first Credit bank branches in urban areas. ceremony being held in provided by JTM Technology
access to financial services. financial system in its entirety, Reference Bureau licensed,” He said the government Nairobi, Kenya at that time. Kenya, as well as dinner gift
He said the situation is which is aimed at realizing the he said. formulated the FSDP as a In 2008, the event was hosted vouchers from Sunbird
particularly dire in developing vision of a financial system Dr Musokotwane, however, programme to address various in Kampala, Uganda, while Malawi Hotel for two.
countries where often the that is sound, stable, and said growth in the financial sectoral weaknesses and Tanzania hosted the event in Zambanker joins
majority of the population is market-based and would sector goes beyond just the ultimately broaden and 2009 in the country's all well-
excluded from the formal support efficient resource number of licensed deepen Zambia's financial c a p i t a l o f D a r- e s - wishers in
financial system. mobilization necessary for institutions. This is noted in sector. Salaam. congratulati
Dr Musokotwane said this economic diversification and other indicators such as the “In this regard , Finmark Trust The event, organized ng Mrs.
during the Financial Sector sustainable growth. asset base, outreach through of South Africa was contracted by a management Mutati for
Development Plan (FSDP) He further said the financial branch and agency network, to undertake this activity, development yet again
national launch of the findings sector has witnessed as well as innovation of under what is widely referred organization, the putting the
of the Zambia FinScope 2009 significant growth in the products. to as the FinScope Consumer International country and
survey, which was held at industry during the period of He said one of the priority Survey, initially in 2005 and Renaissance Centre of the Central
Hotel Intercontinental in implementing the FSDP, with areas identified under the subsequently, in 2009 for a Kenya brings delegates Bank on the
Lusaka on 27 July, 2010. new banks opening up to take FSDP relates to the production follow up study. The main together from various global map.
He said the first phase of the advantage of a favourable of market knowledge on the objective of the FinScope countries within the
region.
The awards seek to
From Page 3
financial system stability, the
Bank has various assets, both
material and in the form of
BoZ lauds cops In June 2007, BoZ requested
the office of the Inspector-
General of Police to shortlist
thirty Officers, who were later
recognize
Personal
Assistants

human resource.” he said. subjected to intensive

Mr. Zombe said the BoZ was distribution of currency is He also said that security screening before finally being
responsible for distributing very critical to the support of within the Bank's premises seconded to the Bank.
currency throughout industries and commerce. was of paramount importance Only Eleven Officers have so
Zambia, and as such, the This activity has to be done in in order to ensure that no far successfully gone through
institution is a key and a safe and secure manner to harm is occasioned on Bank the recruitment process and
strategic institution in the avoid delays and disruptions employees and its valued have commenced to discharge
economy. “The physical in the economy.” he added. clientele. their duties at the Bank.

'Help us promote public welfare'

From Page 1 Highvie Hamududu thanked said.
the foundation for high, the Bank of Zambia for He also noted that there
sustainable real growth and conducting the workshop for were various successes that
that this was a goal that the the Members of Parliament. the country had achieved in
BOZ was expected to achieve. He said there was need for the the financial sector in the
And speaking earlier, Bank Bank, together with all recent past. He said it was
Governor Dr Caleb Fundanga Members of Parliament to important for the country to
thanked Members of continue interacting in order begin to take note and
Parliament for accepting the that legislators are informed celebrate such successes.
invitation to attend the on the various developments The MPs that attended the
seminar. He urged them to on monetary policy. “This seminar were from the
contribute freely to the workshop will allow Members Public Accounts Committee,
deliberations and to form a of Parliament to debate from a Committee on Estimates,
platform for future knowledge stand-point. Committee on Economic
consultation and networking. It is also important for the A f f a i r s a n d L a b o u r,
And giving a vote of thanks on Bank to give us comparative Committee on Legal Affairs
behalf of the MPs, Chairperson information on the and the area Member for
of the Committee on performance of the financial Siavonga, Honourable
Mr Hamududu Estimates, Honourable sector in the SADC region,” he Douglas Siakalima.

A BANK OF ZAMBIA JOURNAL 5 ZAMBANKER SEPTEMBER 2010

 NEWS

SADC ICT gurus look ahead

By Zambanker reporter Continuity Management team had been tasked to medium and long term ICT finalized after which the continuity management
Chairperson of the SADC ICT (BCM) team to prepare high prepare high level terms of requirements. database would be frameworks.
Forum, Mr Paulo Maculuve level terms of reference for a reference for a working group The paper is also expected to popularized. He said it was important that
has observed that demand for working group to address to address infor mation consider ICT learning The Chairperson said that the the coordinating team of the
infor mation security is information security. security, subject to the programmes involving other SADC website upgrade was BCM collect information on
increasing the world over, He said that the Forum had, approval by the ICT Forum. stakeholders such as banking being coordinated by the the status of BCM projects in
especially with the growth of through the Reserve Bank of He added that the Forum was and educational institutions, Reserve Bank of South Africa, each central bank and that
ICT-based products. South Africa, also offered to in the process of developing a how to continuously up-skill which had delivered the these needed to be presented
He adds that accordingly, host an information security concept paper on regional ICT staff and how to share the detailed requirements, at the next meeting.
there is need to work out workshop to deliberate on skills developed so far and existing ICT skills with SADC design and development Meanwhile, the chairperson
measures to address any how to address issues that that the concept paper was central banks. plan. He added that the has said the SADC central
issues that may threaten its would negatively affect the expected to be completed by He said that so far, a skills development begun in June bank's ICT architecture being
positive growth in the region. operations of the regional the beginning of the fourth database development had 2010 and would be completed coordinated by the Banco de
Speaking during the SADC central banks. quarter. been finalized as part of the by 15 October this year. Mozambique had developed a
ICT Forum hosted by the He explained that the Bank of Mr Maculuve explained that SADC Committee of Central The team consisted of concept paper regarding the
Bank of Zambia in Zambia, would at this the skills development Bank Governor's (CCBG) developers from the Banco de ICT Architecture and the
Livingstone recently, Mr workshop, provide concept paper would include website upgrade. Mozambique, Bank of Zambia concept includes scores of
Maculuve said that the Forum information on cyber security concepts like how to create He added that a skills survey and the Reserve Bank of projectives, payment
had since tasked its Business and that the Forum's BCM ICT capacity building for was in progress and would be South Africa. applications, exchange
And giving an update on the control applications,
projects that had either been settlement applications,
completed or were under way, financial and money market,
Mr Maculuve said the Central c o l l a b o r a t i o n
Bank of Lesotho, the Bank of communications research and
Tanzania and the Reserve statistics.
Bank of Malawi had visited The project deliverables are
the Bank of Zambia to study information data architecture
its risk and business and network architecture.

Performance of NBFIs analysed

By Zambanker reporter to an increase in the sub-
Bank of Zambia (BoZ) sector's primary earnings of
Governor Dr Caleb Fundanga K5,583 million, coupled with
has described as fair, the a profit after tax of K2,171
overall performance and million recorded during the
condition of the Non-Banks period under review.
Financial Institutions (NBFIs) And speaking on bureau de
in the second quarter of change sub-sector, the
2010. Governor said the financial
Dr. Fundanga said this condition and performance of
during the Gover nor's the bureau de change sub-
quarterly meeting with Chief sector was rated satisfactory.
Executive Officers of Non- “The volume of purchases
Bank Financial Institutions and sales of foreign currency
th
held on 4 August 2010 at by the bureau de change sub-
the Bank of Zambia. sector in the quarter under
Participants to the SADC Information and Communication Technology Forum pose for a group photograph in Livingstone recently “The overall financial review amounted to
performance and condition US$123.5 million
of the non-bank financial (equivalent to K608,643

BoZ donates to Kalabo High School institutions was rated fair

during the quarter under
review. The sector was
million) and US$123.7
million (equivalent to
K612,559 million)
From Page 2 thank the Bank of Zambia. Secretary urged all well glad that former pupils have adequately capitalized with respectively, compared to the
Apart from their own wishers to come on board and remembered the need to fair asset quality, while previous quarter's volume of
school.
donation, they agreed to help in improving not only improve the welfare of pupils earnings and liquidity were US$106.8 million
The chairperson thanked
marginal” he said. (equivalent to K491,805
the Bank of Zambia for not transport other mattresses Kalabo High School, but all at Kalabo High School” he
The Governor said the million) and US$107.1
only donating the mattress, that were bought by schools in Western Province. said. FokaSHA donated 48
leasing subsector reported million (equivalent to
but for also providing FokaSHA. That is a great “I want to thank you most mattresses and one football
some regulatory capital K493,805 million)
transport for the donated sacrifice”. sincerely, FokaSHA and Bank while BoZ donated 36 respectively” he said.
deficiencies owing to four
items up to Mongu in Mr. Muleya thanked the Bank of Zambia for coming to mattresses and provided The volume of foreign
leasing companies not
Western Province. of Zambia and FokaSHA for We s t e r n P r o v i n c e a n d transport for the entire having adequate capital. exchange transactions
“At this stage I want to the donation. The Permanent bringing this donation. We are consignment. The Governor also said the represented an increase of
decrease in the sub-sector's 15.6% over the previous
aggregate regulatory capital quarter.
was largely due to a loss after And Governor Fundanga
tax of K6,749 million revealed that the United
reported in the sub-sector in States dollar remained the
the quarter under review. most traded currency in the
“The overall liquidity p e r i o d u n d e r r e v i e w,
position of the leasing and accounting for 95.9 percent
financial sub-sector as followed by the South African
measured by the ratio of Rand at 2.7 percent.
liquid asset to total deposits
and short-term liabilities
was 9% (March 2010: 15%).
The liquidity was below the
prudential minimum of
15%” he said.
The Central Bank Governor
also described the financial
condition and performance
of the micro finance sub-
sector as fair.
“The sub-sector had
satisfactor y regulation
capital position and asset
quality and earning
performance. The regulatory
capital of the MFI sub-sector
was K217,805 million
(March 2010: K208,375
million) and was above the
aggregate minimum
regulatory capital position of
K67,141 million by
K150,664 million” he said.
Dr. Fundanga attributed the
increase in regulatory capital Dr. Fundanga
Mr Mayondi handing over the matresses to Mr Nalishebo Mundia, as Mr Seth Muleya (c) looks on

A BANK OF ZAMBIA JOURNAL 6 ZAMBANKER SEPTEMBER 2010

 NEWS

No effective leadership, no true development

By Zambanker report The workshop, which was growth for the past 10 years inflation has since returned to remained a key challenge in realise how to apply.
Deputy Governor – organised by Human and over the last five years, single digit levels. the face of limited resources, The participants further said
Operations, Dr Denny Resources department in real GDP growth rate had Further, the financial sector infrastructure and financial that the topics covered by
Kalyalya has said that there conjunction with MCA a v e r a g e d 6 % a n n u a l l y. recorded tremendous growth inclusion. MCA International and its
can be no true development in international of South Africa, Inflation and exchange rate since the commencement of And participants spoken to by facilitator, Mr. Dave Boreham,
the Bank without good and covered topics such as self developments have also been liberal economic and financial the Zambanker expressed were relevant to their being
effective leadership. awareness, time favourable. In 2006, a single policies in the early 1990s and happiness that they were able able to achieve the objective of
Speaking at the High management, action or goals digit inflation level was equally positive to attend the workshop as the Bank.
Per for mance Leadership required to achieve a mission, attained. developments have been they were given an Topics such as emotional
workshop for senior emotional intelligence and Although inflation rose to registered in the payment opportunity to refresh their intelligence and values and
management staff at Lilayi values, power to take action double digit levels at the end systems. individual and collective power to take action proved to
Lodge recently, Dr Kalyalya and ability to manage of 2008 owing to the effects of Dr Kalyalya said sustaining memories on what they be some of the more popular
said leadership was required direction successfully. the global economic crisis, macroeconomic stability already knew, but did not ones during the workshop.
in order for the Bank to Dr Kalyalya alluded to the fact
achieve its objectives. that some of the topics that
'We live in a dynamic world were lined up may not have
which calls for good been entirely new to
leadership dedicated to hard participants, but he firmly
work, daily learning, fast believed that they could be
thinking and acting swiftly necessary for purposes of
and prudently at all times,' he reinforcing what was already
added. known. Courses such as high
Dr Kalyalya further reminded performance leadership are
participants that not too long intended to facilitate the
ago, they were involved in the exchange of information and
review of the Bank's strategic views on appropriate
plan that brought into leadership attributes in order
existence the 2009-2012 to help in enhancing
strategic plan. performance for leaders in
In order to fully implement various positions.
the goals and objectives of the The Deputy Governor
strategic plan, there was need reminded participants that
to enhance leadership skills. the role of the Bank was to
The Deputy Governor said it deliver low and stable prices
was against this background and maintain financial system
that this workshop was stability.
organised. The Bank's desire In spite of the global economic
was to constantly upgrade downturn, Zambia was
leadership skills for the enjoying relative economic
attainment of goals and stability with good prospects
objectives even in the face of for the future following the
daunting challenges. recent and on-going
He further underscored the significant transformation of
importance senior the economy.
management attached to Due to implementation of
capacity building appropriate macroeconomic
programmes for all Bank policies, the country had
employees. registered positive real GDP

BoZ employees urged to write wills Copperbelt Universty Management and Accountancy Association (CUMAA) members who visited the Bank of Zambia recently captured in front of the
BoZ building with Bank staff members
By Zambanker reporter law and one's wishes would
Bank of Zambia employees not be followed.
have been encouraged to Some of the formalities
write wills so that adequate
provision for their loved ones
is taken.
required include the fact that
the will has to be in writing,
signed by the testator or by
Consistent Performance vital - Kankasa-Mabula
Speaking at a will writing some other person and signed By Zambanker reporter competence levels of its took on board topics that were individual performance goals
session in the Bank of Zambia or acknowledged in the Deputy Governor – employees. crucial for management skills and measures such as
Auditorium and organized by presence of two witnesses. Administration, Dr Tukiya T h e m a n a g e m e n t such as change management, exploring the concept of
Human Resources Any person except a minor, is Kankasa-Mabula has advised development programme was performance management, accountability and
department for employees in allowed to make a will, and that no organisation can designed to strengthen team building and human responsibility, indicating how
Lusaka recently, Mr Charles any one can be a witness to a consistently perform at a high managerial and supervisory resource management among appraisals could be applied as
Chanda of Chanda Chizu & will except an insane person, level unless the capabilities of capabilities among its middle others. an effective tool for managing
Associates said reasons why it minors and illiterate persons middle management and top management employees. The The Deputy Governor also said individual performances and
was advantageous for an and beneficiaries unless in management are aligned. Bank recognised that this that while most organisations discussing a systematic
individual to write a will the presence of two Speaking at the official category of employees was viewed training as an expense, approach to personal
include choosing a person one independent witnesses. opening of a management very important and critical in the Bank considered training development planning.
wants to run their affairs or A person making a will can development programme the implementation of Bank as an investment with tangible The Bank, in this regard,
estate when they are gone, to choose as administrator, organised for middle programmes and objectives. returns. Despite its dwindling pledges to continue with the
prevent property grabbing anyone they wish to management employees at 'The programme deliberately financial resources, the Bank staff development
and to ensure that life savings administer their will once Chrismar Hotel in Lusaka included topics on the core continued to invest in training programmes as a means to
go to the designated people. they have passed on. Mr recently, Dr Kankasa-Mabula functions of the Bank so that as a way of ensuring that its improve individual and team
Laws on inheritance and Chanda also clarified on the said for the Bank, aligning of you are all aware of what the employees kept pace with performance management as
succession in Zambia are provisions for cancellation or capabilities meant that both Bank does and how the global changes and trends. it implements its objectives.
governed by two pieces of revocation of a will. levels of management must different departments One of the facilitators, Mr
legislation, and these are “It is possible for one who has steadfastly uphold the vision complement each other. These Adamson Sinyangwe who
Intestate Succession Act and made a will to cancel it. This which was 'to be a modern, topics are essential because made a presentation on
the Wills Act. can be done by a document dynamic, credible and effective they allow you to have a performance management,
A will is a legal paper that known as codicil, which is central bank' and be able to deeper understanding of the said the performance
describes who should receive another will. identify specific roles in Bank and to understand the management process attempts
one's probate property after A will can also be cancelled or realising this vision. role that each one of you plays to systemise good practice to
they are dead and is typically revoked through a written 'It has been observed that a in meeting the Bank of Zambia ensure that what all managers
prepared by a lawyer and declaration of intention to number of organisations tend objectives which are enshrined aimed for and achieved was
signed by the testator in front revoke or through tearing or to have weak middle in the BoZ vision and mission,' what the organisation
of at least two appropriate burning”. management teams and strong she said. required. He added that
witnesses and a public notary. Section 20 of the Wills Act top management or vice versa. Dr Kankasa-Mabula further performance management
A will can also be described as gives the High Court power to W h i c h e v e r w a y, n o stated that the Bank preferred should incorporate
a legal declaration of intention vary a will where there are organisation can consistently in-house courses because they performance improvement
to confer a benefit on another, unreasonable provisions for perform at a high level unless allowed facilitators to make throughout the organisation,
which will take effect upon the the spouse, children or the capabilities of middle programmes which were as well as the continuous
death of the writer. dependants. management and top tailored to the needs of the development of individuals
Mr Chanda explained that In order to write a will and in management are aligned,' she institution. The management and teams.
wills are generally governed order for it to take effect, the said. development programme was The aim of this topic was to
The Deputy Governor further tailored to meet the Bank's help managers reflect on the
by the law and therefore the testator must identify
stated that the Bank attached requirements with regard to process that must underpin
Wills Act provides formalities themselves, identify the
special importance to staff developing managers with the performance management by
to be followed when preparing assets, name the
training and development as a knowledge, skills, attitudes outlining a systematic model
a will. The law requires that beneficiaries, name personal
way of benchmarking its and behavioural attributes to of performance management,
formalities should be followed representatives and their
operations, learning best meet the Bank's current and highlighting some of the
or else the will could be authority and revoke all other
practice and enhancing future needs. The programme potential pitfalls of setting Dr Kankasa-Mabula
disregarded by the courts of wills, that may exist.

A BANK OF ZAMBIA JOURNAL 7 ZAMBANKER SEPTEMBER 2010

 FEATURE

Is there a Case for Consumer Protection in a

By Nambula Wamulungwe the actual product and the lending

Liberalised Financial Sector?

There are growing calls for increased
consumer protection in credit
markets, globally. Proponents of
financial inclusion now observe that in
process. It typically includes the
following aspects (Porteus 2009):
! Right to cancel; this includes the
right of the borrower to repay
the absence of consumer protection, early with a pre-agreed and often
the gains of financial inclusion could
be lost. Retail consumers have less
A Case Study Of The Zambian Micro-Finance Industry limited penalty.
! Prohibited behaviour; this entails
information about their financial the prohibition of certain forms of
transactions than do the financial dilemma as follows: 'unchecked welfare in the context of the financial are frequently low, consumers are selling or collection behavior. In
institutions providing the services, market forces and policies that relax sector in Zambia, particularly the mostly badly informed about their some cases this has been further
which can result in excessively high regulation in an effort to open micro-finance sub-sector, as well as rights and unable to enforce such referred to as reckless or
interest rates paid, lack of financial markets to serve the bottom to propose an appropriate framework. rights through either negotiation or predatory lending. However, the
understanding about financial of the pyramid can result in legal action…' challenge is often in how to
options, and insufficient avenues for consumers that are harmed as a result Motivations And Approaches For The economic basis for the uneven define such activities.
redress. Consumer protection is of financial access. Harm can range Consumer Protection playing field between lenders and ! Right of grievance redressal: this
therefore, viewed as a regulatory from over indebtedness due to Regulation and Consumer borrowers partly stems from the mandates credit providers to put
response to a market failure. This excessively high prices and predatory Protection problem of information asymmetry. in place clear grievance
paper reviews the arguments for as lending, to loss of savings or pledged Regulation is generally viewed as a The Alliance for Financial Inclusion procedures for their customers.
well as the pit falls in consumer assets when unscrupulous actors proxy for competition. Industries that summarises the issue as follows: This provides effective channels
protection and evaluates the enter the market for short-term are subject to regulation are typically 'Retail consumers have less to resolve credit disputes,
relevance of the debate for Zambia gain'(Alliance For Financial Inclusion, those that do not easily lend information about their financial outside the more onerous court
with a greater focus on the 2010). themselves to competition. As a transactions than do the financial p ro c e s s . T h i s i s u s e f u l
microfinance sector. Finally the paper The demands for increased consumer result, they lack the discipline of the institutions providing the services, particularly in the case of small
proposes a relevant framework the protection in the financial sector are market that would normally facilitate which can result in excessively high amounts.
Bank of Zambia could adopt to not unique to Zambia and other the enhancement of consumer welfare interest rates paid, lack of In addition to legislative and other
enhance consumer protection. developing countries. Porteous in its various forms. understanding about financial direct frameworks set up by
Financial inclusion is a topical theme (2009) observes that calls for Invariably, therefore, calls for options, and insufficient avenues for regulators, there is also a growing
in development literature today, consumer protection in credit markets consumer welfare are synonymous redress...Although many financial drive towards the development of self
particularly as it relates to its are global and growing (Porteous, with some form of market failure. institutions adopt practices to ensure Mr Wamulungwe regulation mechanisms in the
perceived ability to leverage 2009: Consumer Protection in Credit Eisner, et al, 2006 describe consumer they are well served, some have used financial industry. A case in point is
multitudes in developing countries Markets). The motivation for these protection as a regulatory response to their information advantage(often Despite concerns over high interest
the launch of an initiative promoted by
out of poverty. Several developing concerns largely stems from the a market failure (Alliance for Financial abated by regulatory loopholes rates in some cases, many analysts
micro-finance leaders, investors,
countries have made progress in the apparent imbalance of power between Inclusion 2010) intended to promote financial warn against the temptation to re-
practitioners, researchers and donors
development of their financial sectors consumers and credit providers, It is common to see strong consumer inclusion) to increase profits at the establish interest rate ceilings.
from around the world in 2008 in New
over the past two decades. Most of coupled with the generally low levels movements in utility services, for expense of consumers who may find Porteous (2009) observes that
York in 2008 dubbed the 'Campaign
this success could be attributed to the of consumer education (Making instance. This is largely so in view of themselves over-indebted, under interest rate ceilings have been
for Client Protection' (Porteous,
liberalisation of financial sectors of credit Markets Work, 2005: Porteous, the market structure of these insured or without a return on their resisted on grounds that 'they impede
2009). The initiative came up with a
these countries and the 2009). The liberalisation of financial industries which typically leans investment (Alliance for Financial the flexibility of new types of lenders
set of industry principles based on self
implementation of broader financial markets globally has resulted in towards monopoly or oligopoly. Inclusion (2010): Consumer to offer appropriate size loans at
regulation. These included the
sector reforms. increased competition to lend, the It is therefore, generally perceived that Protection, Leveling the playing field sustainable rates'. He further observes
following actions;
relaxation of interest rate ceilings and firms in these industries would have in financial inclusion). that the lack of access to appropriate
Most analysts therefore observe that a) Prevention of over-indebtedness;
consequently, fears of over- market power and therefore lack the Widespread over-indebtedness has credit is largely considered a greater
the financial sectors in most African b) Transparency in pricing and
indebtedness in the wake of the incentive to act in the interest of the been linked to inadequate consumer challenge than the 'exploitation' which
countries have begun to deepen their advertising of loans;
phenomenal growth in retail credit consumer. It could be argued that the protection. Porteous (2009) observes would affect a smaller group of
lending and increase access with new c) Privacy of client data;
(Porteous 2009). financial industry does not share the that with the liberalisation of financial people.
products and technologies (Honohan d) Fair loan collection practices;
and Beck, 2007). It is further observed Invariably, the category of financial same characteristics as a utility markets in many developing Approaches to Consumer Protection
e) Ethical staff behavior; and
that the microfinance sector is fast sector consumers with the greatest company in the energy, telecoms or countries, there has been an explosive in the Financial Sector
f) Dispute resolution mechanisms
developing on the continent. need for protection are the low water sectors whose regulation entails growth in retail credit particularly While the regulatory measures for
As part of broader structural reforms income clients who largely depend on clear regulations for consumer among first-time borrowers who are consumer protection are varied in
nature, they could broadly be Structure of Consumer Regulation
to the Zambian economy over the last borrowing from micro-finance protection. However, this argument typically the low income borrowers Different countries have different
two decades, the Zambian institutions which typically have a may be a case of degree, as financial (Porteous 2009) resulting in categorised into three conventional
g ro u p s , n a m e l y, d i s c l o s u re structures or regulatory frameworks
government has continued to higher cost and usually subject to industries though admittedly with widespread over-indebtedness. for consumer protection in credit
implement financial sector reforms much lighter regulation. more players than the latter, are far These low income borrowers are regulation, product based regulation
and provider based regulation. markets. Generally, however, most
since the early nineties as part of the In response to these growing calls for from being considered perfectly typically customers of micro-credit countries either have consumer
broader drive for economic c o n s u m e r p ro t e c t i o n , s o m e competitive. institutions. Disclosure regulation largely relates
to the standardisation of information protection agencies or industry bodies
liberalisation. This included among developing countries such as South Consumer protection is therefore Over indebtedness is not only a that self-regulate.
others, the removal of interest rate and Africa, Mexico and India have meant to level the playing field problem at the individual house-hold given out by lenders regarding their
products (Porteous, 2009). This is Even countries that have consumer
credit controls, restructuring and tightened their regulatory frameworks between suppliers and consumers of level. On a larger scale, it could protection agencies have wide
privatising commercial banks by either introducing new legislation financial services (Alliance for become a systemic risk in the aimed at better informing the
consumers and thereby empowering variations with some countries such as
(Gelbard and Leite, 1999). As part of to protect borrowers or tightening Financial Inclusion 2010). financial sector as has been the United Kingdom (UK) having
the continuing financial sector existing lending laws (Porteous, experienced by some developing them to make decisions based on a
better appreciation of the terms and general consumer protection
reforms, the Zambian government 2009). Motivations for Consumer countries. Porteous (2009) observes regulators (e.g. the Office of Fair
embarked on an ambitious four-year Despite the growing consensus Protection in Credit Markets that Bolivia in 2009 and South Africa conditions of the loans. A typical
component of this is usually a Trading) working alongside a an
Financial Sector Development Plan among policy makers and regulators As with all other regulated industries, in 2002 witnessed credit 'busts' with industry specific regulator (e.g. the
(FSDP) in 2004. One of the major on the need to increase consumer systemic consequences. The US sub- prescription of how interest rates and
the major call for consumer protection FSA for Mortgage Credit) (Porteous,
thrusts of this programme was to protection in credit markets, this is not prime crisis is a classic example of other charges should be calculated
stems from concerns of inequality 2009). In South Africa and Mexico,
increase financial access to the necessarily without cost. Intervention t h e s y s t e m i c r i s k o f o v e r- and disclosed. Porter (2009) however
between the consumer and the specialised statutory credit regulatory
unbanked majority. A 2006 Finscope in credit markets is perceived to have indebtedness in developed countries. brings out an important caveat as he
provider of a good or service that agencies attend to consumer
study indicated that 77% of Zambians negative consequences of slowing In addition to high prices, over- observes that 'disclosure
compromises the former's bargaining complaints and provide financial
did not have access to financial the expansion of access to credit indebtedness, loss of savings and requirements work best when
power. Porteous (2009) in 'Consumer education, among other roles.
services (Finscope Zambia, 2005). (Porteous, 2009). There is therefore a collateral, etc., other authors site consumers are literate and able to use
Protection in Credit Markets' In some countries without specialised
As a result of the comprehensive trade-off to be made between the over-zealous collections resulting in effectively the information provided.
summarises this view in an extract regulatory agencies devoted to
reforms over the last decade, the benefits and costs of further physical or emotional abuse of But even literate consumers may be
from a policy document by the South consumer protection, industry bodies
financial sector in Zambia has intervention in credit markets. customers (Alliance for Financial confused by complex choices' (Porter
African Government: '…There is play a self regulatory role. These
experienced substantial growth over (To be continued in the next edition) Inclusion (2010)) as another 2009, Consumer Protection in Credit
considerable imbalance of power bodies define standards of lender
the past few years with the This study seeks to evaluate the consequence of inadequate Markets).
between consumers and credit behaviour in form of codes of practice
microfinance sub-sector being one of arguments for increased consumer providers, consumer education levels consumer protection. Product based regulation relates to
for members.
the fastest growing. Between To be Continued
December 2007 and December 2009,
the number of microfinance
institutions (MFIs) increased from 8 References
1. Alliance for Financial Inclusion (2010) Policy
to 25 (Bank of Zambia, 2009), a Note. Consumer Protection, leveling the
growth of over 200% in only two years. playing field in financial inclusion. www.afi-
global.org
Given that the financial sector in 2. Bank of Zambia (2009). Annual Report 2009.
Zambia is still relatively under- 3. Bank of Zambia (2010). Banking and Financial
developed, the growth in access to Services Act. www.boz.zm
4. Bank of Zambia (2010). Banking and Financial
credit arising from increased Services Act Microfinance Regulations
competition in lending has brought (2006).www.boz.zm
with it increased awareness about 5. Bank of Zambia(2010). Circular No. 5/2010 :
Penalty Interest.www.boz.zm
consumer welfare issues in the 6. Finscope Zambia (2005). Measuring
financial sector. Complaints abound Financial Access in Zambia. November 2006.
over exorbitant interest rates, high 7. Gelbard E. and Leite S. (1999). Measuring
Financial Development in Sub-Saharan
charges and fees, lack of Africa. International Monetary Fund,
transparency, etc. (Finscope, 2005) WP/99/105, August, 1999.
8. Honahan, P. and Beck, T. (2007). Making
in both the more formal banking Finance Work for Africa. The Worldbank,
sector and the microfinance sector. 2007.
Proponents for financial inclusion 9. Porteous David (2009). Consumer Protection
in credit Markets, Policy Focus Note 1.
now observe that in the absence of Financial Access Initiative.
consumer protection, the gains of www.financialaccess.org
10. National Credit Regulator (2008) Media
financial inclusion could be lost. An Release. March 2008. www.ncr.org.za
Alliance for Financial Inclusion 11. National Credit Regulator (2008) NCR Act.
(2010) report summarises this www.ncr.org.za

A BANK OF ZAMBIA JOURNAL 10 ZAMBANKER SEPTEMBER 2010

 FEATURE/FAQ

Board Practices & Procedures: A Basic Primer

attempt to reach an amicable states: ! Acting as an early warning ineffective
settlement of their dispute arising out “The board should conduct an annual system, which will allow
of or relating to a contractual or other evaluation of its performance and that changes to be implemented Characteristics of successful
legal relationship. The conciliator of its key committees. Evaluation before problems set in; evaluations include:
does not have the authority to impose criteria linked to board and committee ! Identifying and overcoming any ! The purpose, objectives,
upon the parties a solution to the responsibilities and goals should be differences among board process, and outcomes have
dispute.” set forth in the charter and governance members; been fully explained and
Mediation has successfully been policies. In addition to providing ! Leading some directors to discussed with all concerned
introduced to solve commercial, director orientation and education, the conclude that they are neither parties
labour, and cross-border investor board should consider other ways to able nor willing to invest in the ! Strict confidentiality is
disputes. Corporate governance strengthen director performance, time and effort to add value to the maintained at all times
disputes could increasingly benefit including individual director board, and decide that the ! The chairman and the CEO play a
from this trend. evaluations.” company's interests would be key role in developing and
better served by a change in approving the process
Board Evaluation An evaluation should have clear terms board personnel. ! Regular, annual review
International corporate governance of reference for the: ! Benchmarks of board,
Dr Kalinde - Assistant Bank Secretary Litigation standards and codes are increasingly ! Board Typical questions that directors committee, executive, and
emphasizing the need for boards to ! Individual director performance should ask prior to an evaluation company effectiveness should be
By LEONARD NKOLE KALINDE
*
is relatively new and limited in evaluate their effectiveness. For ! CEO include: used as performance indicators
Continued corporate governance practices, example, the UK's Combined Code ! Chairman ! Is the board clear about its ! A written format that is discussed
! Litigation: Court litigation of it can prove useful in preventing states: “The board should undertake a function and responsibilities? by all concerned parties
corporate disputes and, disputes, and could be used formal and rigorous annual evaluation The evaluation should also state the ! Is each director clear about their ! The chairman should provide the
e s p e c i a l l y, c ro s s - b o rd e r more systematically to efficiently of its own performance and that of its reasons why it is being undertaken. role? full board with a report
disputes, has been replaced to a and effectively deal with committees and individual directors.” Typical reasons may include: ! Do the committees understand ! The process itself should be
large extent by litigation before corporate governance disputes. Also, financial institutions are ! Identifying board weaknesses their roles? evaluated for improvements to be
international arbitration Mediation (or conciliation) is formally recommending that companies' and providing the board with an ! What performance metrics will undertaken in the following year
tribunals. Both arbitration and defined in Article One of the 2002 boards should undertake regular opportunity to take action to be used?
litigation are burdened with the UNCITRAL Model Law on evaluations. For example, the US improve itself; ! Who will collect the information? Conclusion
many drawbacks of court International Commercial Teacher Insurance and Annuity ! Allowing the board to assess the ! How will the information be This paper has attempted to highlight
proceedings, including time and Conciliation as: “A process … Association– College Retirement value it creates for the company collected? best board practices and procedures
cost. whereby parties request a third person Equities Fund's (TIAA-Cref) Policy and the efficiency of its internal that could assist organisations achieve
! Mediation: Although mediation or persons … to assist them in their Statement on Corporate Governance functioning; A typical evaluation process is led by good corporate governance standards.
the chairman, but frequently Shareholders, directors and senior
o u t s i d e e x p e r t s p ro v i d e management should be champions for
a s s i s t a n c e . T h e p ro c e s s good corporate governance in their

Frequently Asked Questions comprises:

! An evaluation instrument
! A board presentation involving a
description of the process
organisations. They should realise that
both domestic and foreign investors
place an ever greater emphasis on the
way that corporations are operated and
ability to deal with both being issued e.g. Anti- ! A questionnaire, which directors how they respond to their needs and
internal and external money laundering complete individually and demands. Investors are increasingly
risks. Under the risk- directives, corporate privately willing to pay a premium for well-
based approach, the governance guidelines ! One-on-one confidential governed companies that adhere to
supervisor is able to etc. Continuous capacity interviews good board practices, provide for
assess whether the risk is building for all ! Data collection and analysis information disclosure and financial
increasing, stable or supervisory staff.
decreasing. ! A presentation and board transparency, and respect shareholder
discussion involving the rights. Therefore, good corporate
8. How does Bank of Zambia
7. How effective is bank monitor/ supervise development of a plan to remedy governance is essential in
supervision? / Is Bank of banks? any identified deficiencies establishing an attractive investment
Zambia supervising ! The Bank Supervision climate that is characterised by
banks properly? department supervises, One technique for reducing directors' competitive companies and efficient
! Bank supervision has regulates and monitors opposition to the evaluation process financial markets.
been made effective over banks by using a is to recast them as “performance
the years through: combination of two main improvement plans” (PIPs). These
o The enactment of To Be Continued
methods namely, On-site plans emphasize that the exercise's *
Mr Kanguya Mayondi, Head of Public Relations the Banking and Financial examination and off-site PhD (Kent), LL.M (American), LL.B
objective is to improve performance
Services Act of 1994 monitoring mechanism. (UNZA); Advocate and Commissioner for
Continued from last Edition continue operating. If rather than criticizing performance or Oaths; Commonwealth and USAID
5. Why doesn't Bank of allowed to remain in (BFSA) and the This is in fact a behavior. Treating reviews as a Scholar; Assistant Bank Secretary
Zambia take action operation, depositors accompanying Statutory prerequisite for effective forward-looking planning process, (Litigation) at Bank of Zambia. The
against management / funds may be depleted Instruments. The BFSA banking supervision and rather than a backward looking Interpretation and conclusions
directors involved in and the affected banks was strengthened by the is regarded as expressed in this paper are entirely
critique, may make the process
criminal activities and could seriously jeopardise amendment in the year international best those of the author. They do not
appear more goal oriented and
why is it that the whole the entire financial 2000. practice. represent the views of the Bank of
o The inspection of banks is positive. Zambia, its Board or Management.
institution is closed in system and depositors' o O f f - s i t e
now risk focused. Risk- monitoring is intended to Board evaluations are inevitably Corporate governance is defined as
instances where it is funds may be completely challenging for board members. The Corporate governance refers to the
only the directors at lost. based supervision assigns provide an early warning
evaluation process can be made mechanisms through which corporations
fault? / Why are the highest priority to system. It is a method of
easier, however, by using facilitators, (whether private, publicly traded, or state-
directors and managers 6. In supervision of banks, is areas of highest risk. monitoring or evaluating owned) and their management are
o Banks that do not conform banks' performance using and by treating it as a forward looking
of failed banks not your approach forward governed. It involves a set of relationships
looking or are you only to the rules and periodical prudential p ro c e s s w h o s e g o a l i s t h e between a company's management, its
prosecuted?
! The Bank of Zambia does looking at a particular regulations are penalized reports and statistical improvement of the board's workings, board, its shareholders, and its other
not allow persons who date in the past? or closed. returns submitted by rather than an implicit critique. stakeholders, and also provides the
were directly ! Bank of Zambia uses a o Zambia is substantially in bank management. structure through which the objectives and
compliance with the Basel o On-site inspections the monitoring of performance are
responsible for bank Risk-Based approach to Common reasons why evaluations do
Core Principles for determined.
failures to hold key supervision of banks involve verification of the not take place include: Henry Bosch, The Director at Risk
positions in any other (RBS). RBS is a forward Effective Banking accuracy of reports ! Some directors may feel (Melborne:Pitman, 1995) p.142
bank or financial looking process in that it Supervision (i.e. received through planned uncomfortable about being Jon J. Masters and Alan A. Rudnick,
i n s t i t u t i o n s . provides for an analysis of international best practice or impromptu visits to the Improving Board Effectiveness: Bringing
evaluated
Furthermore, the Bank the direction that a principles). The Core banks' offices. the Best of ADR into the Boardroom – A
! Day-to-day pressures cause the
of Zambia is alive to the particular risk area is Principles comprise Practical Guide for Mediators
twenty-five basic board to delay the evaluation (Washington, DC: American Bar
fact that the individuals impacting on the bank's 9. Why do foreign exchange
Principles that need to be ! Evaluation may be perceived as a Association, 2005).
directly responsible for financial condition. Risk- rates differ between
in place for a supervisory banks? sign that the board lacks trust or Eric Runesson and Marie Laurence Guy,
the failed institutions based supervision confidence in the CEO's Mediating Corporate Governance
must be prosecuted. In requires a greater system to be effective. ! Foreign exchange rate is a
performance Conflicts and Disputes (Washington, DC:
this respect, the Bank of understanding of the This is regarded as global price for trading in foreign Global Corporate Governance Forum,
supervisory best practice. currency; therefore, the ! The board feels it lacks the skills
Zambia has in the past institutions being 2007). Available at: www.gcgf.org.
o The enactment of the price is bound to differ and expertise to undertake L. Bouchez and A. Karpf, Exploratory
caused the removal from supervised and of the
office and prosecution of environment in which Prohibition and from bank to bank effective evaluations Meeting on Resolution of Corporate
such persons. they operate. It requires Prevention of Money depending on various ! The board has not been Governance-Related Disputes
! The closure of a bank or an understanding of the Laundering Act of 2001 is business reasons affecting emphasizing planning or (Stockholm: OECD, March 2006).
aimed at curbing the demand and supply. Available at: http://www.oecd.org.
financial institution is risk profile of the evaluation. There are no
crime of money Official Records of the Genral Assembly,
primarily undertaken to institution under performance targets for the Fifty-seventh Session, Supplement No. 17
protect depositors' funds examination in order to laundering and financing 10. What is the minimum board, committees, or executive (A/57/17), annex I.
and the financial system. identify areas of greatest of terrorism. capital required to set up managers “The Combined Code” (London: Financial
When a bank is facing risk and therefore o Continuous review of the a commercial bank? ! Dysfunctional board Reporting Council, 2006), p.9. Available
serious liquidity deserving of greatest law in line with the ! The minimum primary at:www.ecgi.org/codes/all_codes.php.“P
! The CEO, chairman, and/or
problems, it is more attention. It requires an current developments in paid-up capital was olicy Statement on Corporate
the financial sector has founder may be dominating the Governance” (New York: Teacher
beneficial to depositors understanding of the revised to K12 billion from
resulted in the various board and be concerned about Insurance and Annuity Association –
and the financial system nature of risks, together K2 billion as of 2nd January
directives and guidelines the issues that an evaluation may College Retirement Equities Fund, 2007),
to close it than to let it with management's 2007. To be Continued p . 1 4 . A v a i l a b l e a t w w w. t i a a -
raise
! Previous board evaluations were c r e f. o r g / p u b s / p d f / g o v e r r n a n c e _
policy.pdf.

A BANK OF ZAMBIA JOURNAL 11 ZAMBANKER SEPTEMBER 2010

 PHOTO FOCUS

Governor Caleb Fundanga, together with Bank of China General Manager Wang Hongwei and BoC Board Member Deputy Governor - Administration Dr. Tukiya Kankasa-Mabula (front row, 3rd from r) treated former Director - Audit
Chita Chibesakunda sharing a light moment during the Chairpersons’ luncheon at Hotel Intercontinental in Lusaka Department Mrs. Avet Hamuwele (front row, 2nd from r) to lunch at Sandy’s Creations. in attendance were some
Directors and Assistant Directors at the Bank

Director at ZESCO, Mr. Masiye Mwale seems to be giving Members of Parliament and BoZ staff members an Governor Caleb Fundanga congratulating one of the happy winners of cash prizes during the draw of the Bank of
impromptu lesson in the chinese language during a familiarization tour of the Kariba North Bank expansion Zambia quiz at the Lusaka Agricultural and Commercial Show
project in Siavonga

During the show in Lusaka, the Governor took time to visit all the players in the financial sector who had mounted Mr. Musapenda Phiri of the FSDP Secretariat at BoZ explains some aspects of the Top Line findings during the
exhibitions. above, Governor Fundanga poses with members of staff of ZANACO after visiting the bank’s stand Copperbelt launch of the Finscope Zambia 2009 - Top Line Findings in Ndola recently

Chairpersons of commercial banks, together with Governor Fundanga and members of the BoZ team, Regional Director Morris Mulomba (2nd from l) handing a gift to Mr. Mathews Zulu during the latter’s farewell f
posing for a group photograph after the luncheon at Hotel Intercontinental in Lusaka recently unction in Ndola. looking on are Mrs. Zulu (2nd from r) and Assistant Director - HRA Mr. Patrick Mulenga (l)

A BANK OF ZAMBIA JOURNAL 12 ZAMBANKER SEPTEMBER 2010

 NEWS

Zambia attractive investment location-Chinese bank attractive investment rate (WALBR) to 21 per cent
destinations in Africa”, Mr from 22.5 per cent as recorded
Wang said. in the previous quarter.
Mr Wang was speaking at The average lending rate also
L u s a k a ' s H o t e l declined to 27.7 per cent as at
Intercontinental at a Quarterly end June from 29 per cent in
Luncheon for Commercial March.
Bank Chairpersons held in In the foreign exchange
September 2010 and market, the Kwacha
sponsored by BoC. depreciated against major
He said his institution would traded currencies except for
continue to contribute to the the euro, thus reversing gains
country's economic made in the previous quarter.
development through the The Kwacha depreciated by 9.1
provision of financing to local per cent against the US dollar,
businesses and the payment of ending the period at an average
taxes for the well-being of the of K5,122.89.
Zambian people. H o w e v e r, t h e G o v e r n o r
Mr Wang said the economic reported that latest data for
strides Zambia was making end of July showed that the
were also as a result of the rate of depreciation for the
existing healthy and dynamic Kwacha to US dollar had
financial system under the slowed down, to the point of
efficient supervision of the posting marginal gains by the
Bank of Zambia. end of August.
And Bank of Zambia Governor, “As at the close of the trading
Dr Caleb Fundanga thanked Mr session on 27 August, 2010 the
Wang for his kind words, Kwacha was trading at
Governor Caleb Fundanga compares “notes” with Chairpersons of commercial banks at the luncheon held at Hotel Intercontinental in Lusaka, while noting that it was not too often K4,974.32 against the US
Deputy Governor - Operations Dr. Denny Kalyalya keeps vigil that regulators were lauded for dollar in the interbank
their work. market”, Dr Fundanga said.
By Zambanker reporter by a leading Chinese Bank. potential had been supported per cent. He thanked BoC for making it In the real sector, the Governor
Zambia has been described as Bank of China (BoC) General by economic fundamentals like “Zambia recorded a six percent possible that Chairpersons of said most of the selected
one of the most attractive Manager, Mr Hongwei Wang last year's Gross Domestic GDP last year and the country the 18 commercial banks indicators of economic activity
investment locations in Africa said Zambia's investment Product (GDP) growth of six has become one of the most registered in Zambia could during the second quarter
meet and review happenings recorded an increased output.
of the last quarter in a cordial For instance, during the second

Mudenda Reviews Polymer Performance manner.

The luncheons have become
tradition amongst commercial
banks in Zambia and are
quarter of 2010, copper output
rose by 0.7 per cent to 189,257.
3 metric tones (mt) from
188,088.1 mt the previous
By Zambanker reporter introduction of the polymer faded notes to the Bank of arrangements as may be sponsored by a different bank quarter, while in
Director, Banking Currency substrate in 2003. At the Zambia through commercial necessary for the printing of on each occasion. manufacturing, cement
and Payment Systems Mrs introduction of polymer note banks for subsequent notes, the minting of coins and And in his review of the period, production increased by 18.5
Edna Mudenda has said the use, circulation was infused destruction after for the issue, re-issue, the Governor said inflation had per cent to 185,702 mt from
K1000 and K500 low value side by side with paper notes authentication. exchange and destruction of slowed to 7.8 per cent at the 156,706 mt during quarter
polymer banknotes have in the two denominations until The Bank of Zambia has the notes and coins, and for the close of the second quarter one.
performed as anticipated and the complete withdrawal of exclusive power to issue the safeguarding thereof.' from 10.2 per cent in the In the agriculture sector,
have remained relatively paper notes. The exercise of currency which is the legal Having successfully previous quarter ending March results of a Crop Forecasting
longer in circulation when withdrawing the paper notes tender in Zambia, namely the transcended the barriers of 2010. Survey for 2009/2020
compared to other low value was, by 2005, accomplished. Kwacha. The mandate to printing all the Zambian D r Fu n d a n g a s a i d t h e agricultural season indicated
paper banknotes. “An in-house study was manage the national currency banknotes on the traditional favaourable outcome was that maize production
Reviewing the performance of conducted in 2006 to is drawn from Section 32 of cotton based paper substrate, largely on account of the fall in increased by 48 per cent to 2.8
polymer notes recently, Mrs determine the durability of the Bank of Zambia Act of the country is the first country food inflation to 3.8 per cent in million mt from 1.8 million mt.
Mudenda reiterated the Bank polymer banknotes using 1996, which states that 'the in Africa to adopt polymer the second quarter from 9.3 Regarding the financial sector,
of Zambia's commitment to K1000 and K500 polymer Bank shall have all such banknotes. percent recorded in March he said the overall financial
ensuring that banknotes of banknotes. The study powers and make all such 2010. condition of the banking sector
high quality are issued to the established that the The slowing of food inflation was satisfactory, although
general public. She added that proportion of unfit banknotes The Family of Banknotes – Paper banknotes was mainly driven by reduced financial performance
at the time of introduction, the on account of fading was prices of maize, millet, recorded deterioration
public did not easily accept the small, amounting to only 6.2 Denomination (K) Comment breakfast and roller meal, compared to the previous
“plastic” banknotes and that per cent and 4.8 percent of a various vegetables and quarter.
the Bank had to undertake, sample of 20 thousand pieces Paper mutton, following the increase The Credit Reference Bureau
and continues to undertake each for the K1000 and K500, in seasonal supply of the Africa Limited held a meeting
several currency campaigns to respectively” she said. 50,000 High value note introduced in 2003 products. with Chief Executive Officers of
sensitise the public on the The Director explained that Developments in commercial banks and their credit officers.
benefits of polymer polymer banknotes last longer bank nominal interest rates Following this meeting, the
banknotes. in circulation than paper 20,000 Same as the 50,000 were said to have been mixed organisation reported a 1,000
She said currently, the two banknotes, accounting for during the second quarter but per cent improvement in the
banknotes were widely about 12 to 16 months while 10,000 Middle value note, upgraded in 2008 by still recorded a decrease in the submission of credit reports by
accepted, such that even when in circulation, which was three replacing the multi redundant hologram with a weighted average lending base the banking sector.
the notes fade on account of to four times longer than metallic strip
wearing out of the ink, the paper banknotes. She added
public continued using them. that paper notes could not be 5,000 Middle value note upgraded in 2003 with
Low value notes are mostly processed on automated
machines due to heavy soiling,
security features and durability BOZ Board gets members
used for purposes of acquiring
change in smaller and that processing of paper From Page 2 policy over the previous six
denominations. notes needed to be done 100 Low value note for change purposes and financial system of the months and recommending
Initially, the low value notes manually. Another advantage country. measures that may enhance
were printed on paper she cited was their 50 Same as the 100 Dr Situmbeko Musokotwane the credibility and objectivity
substrate, until the characteristic of generally not also appointed Dr Dennis o f t h e M o n e t a r y Po l i c y
being prone to mutilation, Chiwele to the Board of Statements as submitted to the
unless subjected to extreme 20 Same as the 50, although this note currently
is Directors of the Bank of Minister of Finance and
conditions. not in wide circulation due toits low purchasing st
Zambia effective 31 July, National Planning in
She, however, added that due power 2009 for a period of three accordance with the Bank of
to rubber banding of years. In his letter of Zambia Act.
banknotes, efficiency was Denomination (K) Comment appointment to Dr Chiwele, Dr Chiwele holds a doctorate
affected when processing the Minister trusted that Dr degree in Philosophy of
them on the automated Polymer Chiwele would assist the Bank Development Economics from
machines. She advised that provide the vital leadership the Institute of Development
automated machines needed expected of it in the Studies at the University of
1,000 • Low value note used for change purposes,
to be calibrated and that this strengthening and Sussex in Brighton, United
initially was printed on paper substrate, development of the banking Kingdom. Dr. Chiwele is also a
was currently proving to be a
introduced on polymer substrate in 2003. and financial system of the holder of a Masters Degree in
challenge in that there was no
recycling of substrate to make • Paper and polymer banknotes circulated side country. International Economics from
plastic products in Zambia, as by side in this denomination. Further, the 302 n d Board the International University of
was the case in other • Withdrawal from circulation took place as Meeting appointed Dr Chiwele Japan in Uraasa, as well as an
to the Monetar y Policy under graduate degree in
countries. Consequently, and when the paper K1,000 banknotes were
Advisory Committee, whose Economics with Distinction
polymer is mixed with paper, deposited at the central bank. functions include providing from the University of Zambia.
shredded and disposed of by • By 2005, paper notes were virtually sound advice to the Board on Dr Chiwele has, hitherto,
landfill.
withdrawn from circulation and therefore, monetary issues, reviewing conducted consultancy
The Director added that it was and recommending assignments both within and
encouraging, however, to note none are in circulation.
appropriate monetary policy outside Zambia for a numerous
that members of the public objectives, assessing the number of organisations.
500 Same as the 1,000
were currently surrendering performance of monetary

A BANK OF ZAMBIA JOURNAL 8 ZAMBANKER SEPTEMBER 2010

 FEATURE

Kalyalya commends BSA

By Zambanker reporter for BSA stakeholders to discuss problems may have not been system. Further, the BSA integrated in order for it to bank supervisors and ICT
Deputy Governor-Operations, issues affecting the unique to Zambia”. Support Office has, to a large enhance the risk-based administrators was organised,
Dr Denny Kalyalya has said the implementation and use of the Dr. Kalyalya also said that the extent, accommodated the supervision of supervised and was tasked to develop this
Bank Supervision Application system over the past year. B S A Ve r s i o n 2 . 1 , w a s requirements of the various institutions,” he said. infor mation management
(BSA) has so far played a vital Prior to the 2010 Stakeholders' introduced to remedy the stakeholders' needs. He further said the BSA solution which has since
role in helping bank Meeting, the BSA Executive shortcomings of BSA Version 1. He added that the BSA Support Support Office should enhance transformed the region's
supervisors in member Committee (BEC) met in He added that BSA Version 2.1 Office was currently working the user manuals to make supervisory landscape in terms
countries to efficiently collect, August 2010 at the same also faced a number of on the BSA Version 3, which is training of new users easier. of effectiveness and quality of
store and manage prudential venue. challenges, some of which expected to be more robust in He said dedicated instruction risk analysis in banking
information from the The role of the BEC, which is were that the system failed to terms of workflows and other manuals should also be supervision. The BSA was
supervised institutions. comprised of Zimbabwe, meet all the users' processes. He expressed hope developed for users from initially deployed in 2003.
Speaking at the official Zambia, Kenya and expectations, non- that upon completion, the BSA central banks, as well as There are currently eleven (11)
opening of the BSA Mozambique, is to provide functionality of certain Version 3 would overcome the supervised institutions. Stakeholder member countries
stakeholders meeting hosted strategic and operational expected operations, slow challenges faced by the “The recent global financial using the BSA. These are
by the Bank of Zambia in direction to the BSA Support processing speed, and that currently applicable systems. and economic crises Zimbabwe (Chair), Kenya (Vice
Livingstone recently, Dr Office (BSO), hosted by the some ratios in RAAS could not “It is our wish that the system demonstrated the urgent need Chair), Zambia, Mozambique,
Kalyalya said the BSA had Central Bank of Mozambique be easily calculated. All these, will be developed in such a way for timely access to reliable Uganda, Swaziland, Lesotho,
demonstrated its effectiveness and which holds the he said added to the IT related that it becomes a one-stop information at all times. Going Namibia, Malawi, DR Congo
and potential to benefit the intellectual property rights of technical problems which were centre for supervisors to do all forward and in order to remain and Cape Verde. Further, the
supervisors in a number of the BSA on behalf of the encountered along the way. their supervisory work. It must relevant, the BSA should BSO during the year hosted and
ways including data integrity, stakeholders. Nevertheless, Dr Kalyalya said be capable of being fully incorporate the following conducted a site visit to the
consistency, validation and T h e D e p u t y G o v e r n o r, it was heartening to note that integrated with common capabilities: statistical and Central Bank of Seychelles for
security of data and h o w e v e r, s a i d t h e s e despite the many challenges Microsoft Office applications, forecasting capability; bank B SA d e m o n s t r a t i o n a n d
information. achievements had not been encountered, the BSA Support such as, the mail system. In valuation; risk modelling and awareness. As a subsequent
He further appealed to all without their own challenges. Office had endeavoured to addition, all the common macro prudential analysis. result, the Seychelles was
stakeholders to continue He said the implementation of ensure that all the BSA supervision processes such as The BSA was conceptualised formally admitted as the
helping the BSA Support Office the BSA Version 1 was m e m b e r- c o u n t r i e s m a ke licensing and regulation, on- by the SADC IT Forum as early twelfth member of the BSA
in order to enhance and deliver problematic to the BOZ reasonable strides with regard site inspections and off-site as 1997. In the subsequent Stakeholders during the
an efficient and effective because of some technical to the implementation of the surveillance should be fully years, a team comprising of meeting in Livingstone.
system. problems.
The BSA is an information “The system was not capable
technology platfor m for of performing some of the
regional central banks used in critical functions in bank
the collection and risk analysis supervision. For instance, both
of supervisory information the Risk Automation and
from the supervised financial Analysis System (RAAS) and
institutions, such as the Bank Supervision
commercial banks. Application System (BSS)
The BSA Annual Stakeholders' modules had challenges,
meeting, which rotates among which impacted negatively on
the member countries, is the pace of the rollout. I am
intended to provide a platform reliably informed that these

Training Update
By Zambanker reporter employees have so far
Training of staff in any successfully completed their
organization including the studies this year, and seven
Bank of Zambia, is important in have already proceeded on full
that it helps companies to train time studies.
have more productive and The following is a list of
qualified employees. members of staff who have
The Bank of Zambia has successfully completed their
employees who go for further studies and those who have
Studies in various programmes proceeded on full time studies:
Participants to the stakeholders meeting pose for a group photo with Deputy Governor Operations
every year.
Bank of Zambia Training PhD in Economic

Interest rate determinants revealed

Manager, Patson Banda told Anthony Simpasa
the Zambanker that 14 Jonathan Chipili

Masters Degree Programmes

Name Course Department From Page 1 is partly supported by a would need to be considered: economic system like Zambia,
1. Chishimba Yumbe MA in Public Policy Finance
that there was a strong link correlation coefficient of 0.72 The need for improvement in macroeconomic factors
and Management
2. Eric MBA (Heriot Watt) Finance between the weighted lending between weighted lending the transparency and should dominate the
Masumbu base rate (WLBR) and inflation base rate and open market credibility of the BoZ monetary determination of rates.
3. Danny Kaliba MBA (Heriot Watt) Financial Markets and a strong positive operations rates,' Dr Pamu said. policy in order to anchor In this regard, commercial
4. Lyness Mambo MBA (Heriot Watt) Bank Supervision relationship between the Other issues that arose from inflationary expectations, the banks were urged to develop
5. Bertha Chisola MBA (Heriot Watt) Internal Audit
treasury bill yield rate and the the survey included a need for further development formal frameworks for the
6. Diana Chisulo MBA (Heriot Watt) Finance (R/O)
7. Felix Sinkala MBA (Heriot Watt) Finance WLBR. suggestion from banks for the of the money market for interest rate decision-making
8. Muuka Madubeko MBA (CBU) BCPS 'Even though half of the banks credit culture to be improved, effective and efficient process.
9. Besnat Mwanza MBA (Nelson Mandela Bank Secretariat Dr Pamu said that BoZ, on its
Metropolitan) surveyed indicated that they among other things, by interactions between
consider inflation when setting widening the scope of commercial banks and BoZ, part, will continue to foster
ACCA lending rates, our analysis information captured by the and the need for the competition by encouraging
Name Course Department suggests a strong link between Credit Reference Bureau. Most development of a deeper and the entry of new banks for the
1. Florence Pandala ACCA Finance the WLBR and inflation and banks indicated that although liquid secondary market. purpose of improving the
2. Harriet Chishimba ACCA Financial Markets also a strong positive the introduction of the BoZ It was clear from the survey provision of banking services.
relationship between the overnight facility was a that there were several issues
ACT treasury bill yield rate and the welcome development, the that required to be addressed
WLBR. Correlation coefficient margin that was added to the before a significant reduction
Name Course Department between the two is 0.75 and interbank rate was too high. in lending rates on the market
1. Kabwe Kandeke ACT Bank 0.89 respectively,' Dr Pamu Banks also noted that the could be visibly observed and
Supervision said. interest rate on the overnight more importantly before an
Employees who have Proceeded on Full Time Studies this Year
Key implications of the findings facility should be effective interest rate targeting
for the interest rate targeting independently determined framework could be
Name Course
Department
framework were that a policy with the policy rate as a implemented.
rate that was linked to the reference. And on the issue of the high
1. Abel PhD (Economics) University of Economics interbank or overnight facility Further, operational costs in interest rates, it was pointed
Shimba International Business and Department
Economics – China
Economics – China
rate may not have the desired the banking industry were out that banks needed to
2. Ernest MA in Banking and Finance (Moi NBFI effects on interest rates in the found to be high and that this improve efficiency by lowering
Chisongo University)
economy and that the use of had a bearing on the operational costs and that they
3. Patrick MA in Banking and Finance (Moi BCPS qualitative or judgemental determination of the base should be consistent in the use
Phiri University) factors in the interest rate lending rates. of macroeconomic factors such
4. Eddie MSc in Project Management ICT decision-making process may 'The high operational costs may as inflation, exchange rates and
Bwalya (CBU) dampen the intended effect of a be a reflection of inefficiencies treasury bills. All things being
5. Donald BA in Development Studies Security
policy decision. For this reason, in the banking industry, which equal, it was expected that
Mandeva (UNZA) a policy rate linked to either the banks could be passing on to when inflation or treasury bill
interbank or the overnight their clients in the form of high rates were low, lending rates
facility rate would be lending rates,' the Director should also be adjusted
6. Maeke BA in Development Studies Security ineffective. added. downwards.
Njunju (UNZA)
'The option available for the Commercial banks indicated Dr Pamu also mentioned that
policy rate is linking the policy that in order for the interest while qualitative factors were
7 Charles BA in Development Studies
Mukuka (UNZA) Security rate to the open market rate targeting regime to be important in the determination
(R/O) operations rate. This possibility success, the certain factors of lending rates, in a liberalised Dr Pamu

A BANK OF ZAMBIA JOURNAL 9 ZAMBANKER SEPTEMBER 2010

 PHOTO FOCUS

Deputy Governor - Operations Dr. Denny Kalyalya explaining developments in the economy to journalists at a press First Republican President Dr. Kenneth Kaunda receiving a gift from Head of Public Relations Kanguya Mayondi
briefing in the Bank’s stand during Lusaka Agricultural and Commercial Show before leaving the BoZ stand at the Lusaka Agricultural and Commercial Show

Members of the Regional Office Managers’ Circle captured in a relaxed mood at the scenic Mutanda Waterfalls in
Solwezi recently Part of the contingent of Parliamentarians and BoZ staff listening attentively during the Bank’s Seminar for MPs in
Siavonga

The Bank of Zambia team which participated in festivities to mark the commemoration of World Population Day in Head of Public Relations, Kanguya Mayondi (l) receiving “some valuable tips” on the trade from former Head of
Lusaka take time off to pose for a momentous group photograph at Mulungushi Inter9national Conference Centre Public Relations and current Minister of Foreign Affairs, Hon Kabinga Pande at the Lusaka Agricultural and Commercial

Deputy Governor - Administration Dr, Tukiya Kankasa-Mabula conferring with Hon. B.Y. Mwila and Hon. Geoffrey Members of the Bank of Zambia team who represented the institution at the Lusaka Agricultural and Commercial
Mwamba during the Seminar for MPs in Siavonga Show pose with Governor Fundanga at the BoZ stand

A BANK OF ZAMBIA JOURNAL 13 ZAMBANKER SEPTEMBER 2010

 VESS/ORBITUARY

Separation from the Bank List of Banks and Other Financial

Service Providers
Licenced Under The Banking and Financial Services Act, Cap 387 of the Laws of Zambia
Zambanker reporter
A. Commercial Banks
Five members of staff Names of Banks Head Office Address Tel No:
separated from the Bank 1 Access Bank Zambia Ltd P O Box 35273
2 African Banking Corporation Zambia Ltd P O Box 39501, Lusaka 234541, 232991-3
during the third quarter of 3 Bank of China Zambia Ltd P O Box 34550, Lusaka 235350
2010 of which four 4 Barclays Bank Zambia PLC P O Box 31936, Lusaka 228858-66, 227659- 61
separated through the 5 Cavmont Capital Bank Zambia Ltd P O Box 32222, Lusaka 224280/6/7
6 Citibank Zambia Ltd P O BOX 30037, Lusaka 229025-8
Voluntary Early Separation 7 Ecobank Zambia Ltd Stand No. 22768 (Formerly FTJ Chiluba Institute) Corner Great East/Thabo Mbeki Roads
Scheme (VESS) and one 8 Finance Bank Zambia Ltd P O Box 36762, Lusaka 221808/ 229733 42
resigned. 9 First Alliance Bank Zambia Ltd P O Box 33959, Lusaka 229303-6
10 First National Bank Zambia Ltd P O Box 36187
Those who took VESS are 11 Indo-Zambia Bank Ltd P O Box 35411, Lusaka 224653/225080/ 228074/224652
Mr Boaz Musamvu, Mr 12 Intermarket Banking Corporation Zambia Ltd P O Box 35832, Lusaka 227227-8
13 International Commercial Bank of Malaysia
Re u b e n M b e w e , M r s 14 Investrust Bank Zambia Ltd P O Box 32344, Lusaka 238733/5
Mirriam Banda and Ms 15 Stanbic Bank Zambia Ltd P O Box 33611, Lusaka 229285-6
Mwango Kasutu while the 16 Standard Chartered Bank Zambia PLC P O Box 32238, Lusaka 222046/229242-60
17 United Bank for Africa Zambia Ltd Stand No. 22768 (Formerly FTJ Chiluba Institute) Corner Great East/Thabo Mbeki Roads
one who retired is Mr 18 Zambia National Commercial Bank Ltd P O Box 32111, Lusaka 221355
Graeme Mutantabowa.
Mr Mutantabowa resigned
from the Bank on July 2, NON BANK FINANCIAL INSTITUTIONS LICENCED BY BANK OF ZAMBIA
2010 after working for Licenced Under The Banking and Financial Services Act of 1994 (and as amended in 2005)
Mr Musamvu
over 8 years. Mrs Banda
A. LEASING COMPANIES POSTAL ADDRESS TEL. FAX
His last appointment was 1 ALS Capital Limited P O BOX 31986, Lusaka 0211-222807 0211-236726
that of Assistant Manager 2 Afgri Leasing Services Limited P O Box 37956, Lusaka 0211-240331 0211-240321
– Maintenance in the 3 Commercial Leasing (Z) Limited P O Box 38293, Lusaka 0211-229427 0211-229428
4 Commercial Capital Corporation Ltd P O Box 36706, Lusaka 0211-225429 0211-225429
Procurement and 5 Executive Financial Services Limited P O Box 39275, Lusaka 0211-230631 0211-230634
Maintenance Ser vices 6 Industrial Credit Corporation Limited P O Box 75543, Ndola 0212- 611233 0212-618621
7 IMS Financial Services Limited P O Box 35722, Lusaka 0211-286562 0211-286565
Department. 8 Leasing Finance Company (Z) Limited P O Box 72543, Ndola 0212-618844 0212-615481
Mr Musamvu left the Bank 9 Madison Premier Finance Company Ltd P O Box 34738, Lusaka 0211-255121 0211-255121
on August 31, 2010 after 10 Alios Finance Zambia Ltd P O Box 33703, Lusaka 0211 256592 0211-256682
11 Stechas Financial Services Zambia Ltd P O Box 33604, Lusaka 0211-222736 0211-222736
working for over 18 and
half years. At the time of B. BUILDING SOCIETIES
leaving the Bank, Mr 1 Finance Building Society P O Box 31060, Lusaka 0211-239755 0211-239756
2 Pan African Building Society P O Box 30053, Lusaka 0211-220690 0211-220688
Musamvu was an Assistant 3 Zambia National Building Society P O Box 30420, Lusaka 0211-229191 0211-225510
Manager – Planning in the
C. MICRO FINANCE INSTITUTIONS
Executive Office. 1 Bayport Financial Services Limited P O Box 33819, Lusaka 0211-212772 0211-212713
Mr Reuben Mbewe left the 2 Blue Financial Services Zambia Limited P O Box 30516, Lusaka 0211-232082 0211-232083
Bank on August 31, 2010 3 Bomach Finance Limited P O Box 36298, Lusaka 0211-222802 0211-223039
4 Butala Finance Limited P O Box 35087, Lusaka 0211-235273 0211-235130
after working for over 17 5 Capital Solutions Limited P O Box 34366, Lusaka 0211-231983 0211-231986
years. 6 Cetzam Financial Services Limited Private Bag E760, Lusaka 0211-222991 0211-222961
He was a note examiner in 7 Elpe Finance Limited P O Box 35560, Lusaka 0211-237505 0211-237505
8 FINCA Zambia Limited P O Box 50061, Lusaka 211-251828 211-251736
the Banking, Currency and 9 Letshego Financial Services Limited P O Box 51499, Lusaka 0211-257741 0211-257735
Mr Mbewe Ms Kasutu
Payment Systems 10 Meanwood Finance Limited P O BOX 31334, Lusaka 211-236165/7 211-236170
Department at the time of years. She was a Chimota, Mr David Phiri, 11 Mtawila Financial Services Limited P O Box 30958, Lusaka 26 0955 830005 26 0977 832000
separating from the Bank. Technologist – Electronics Ms Mirriam Mukwasa and 12 Microbankers Trust P O Box 51122, Lusaka 0211-290852 0211-291393
Mrs Banda left the Bank on in the Procurement and Ms Caroline Mashakalati. 13 Microfin Africa Zambia Limited P O Box 32482, Lusaka 0211-227691 0211-227694
14 Nedfin Limited P O Box 37029, Lusaka 0211-234306 0211-234307
September 24, 2010 after Maintenance Ser vices Others are Mr Victor 15 Pelton Finance Limited P O Box 320187, Lusaka 0211-237031
working for almost 18 department at the time of Chisenga, Mr Pontino 16 Pulse Financial Services Limited P O Box RW 51269, Lusaka 0211-233137/8 0211-233136
years. Mrs Banda was a her separation. Phiri, Mr Felix Shantimba,
17 Royal Microfinance of Zambia Limited P O Box 32188, Lusaka 0211-228455 0211-228456
18 Unity Finance Limited P O Box 35721, Lusaka 0211-233084 0211-221179
stenographer at the time of Ten security officers who Ms Veronica Lungu, Mrs 19 Yakabutala Musa Limited P O Box 36634, Lusaka 0977 494340
separating from the Bank were on secondment Maggie Zimba and Mr 20 Genesis Finance Limited C/O Lukona Chambers, Lsk 211-845653 211-845653
21 Microcredit Foundation Limited P O Box 510637, Chipata 0976 294311
in the Procurement and separated from the Bank Conrad Lianda. 22 Prime Circle Microfinance Limited P O Box 34959, Lusaka 0211-281694 0211-281694
Maintenance Ser vices on July 28, 2010 after their Zambanker wishes all 23 Kungoma Financial Services Limited P O Box FW 260, Lusaka 260 211 235195
Department. contracts expired. employees who separated 24 Credit Finance Limited P O Box 50713, Lusaka 260 211 233420 260 211 222202
25 Wide and Deep Services Limited P O Box 32081, Lusaka 260 211 252185 260 211 252185
Ms Mwango Kasutu left the The ten, who separated from the Bank ever y
Bank on September 30, after working for 2 and half success in their future
2010 after working for 15 years, are Mr Davies endeavours.
D. DEVELOPMENT BANKS
1 Development Bank of Zambia P O Box 33955, Lusaka 0211-222821 0211-228576

E. SAVINGS AND CREDIT INSTITUTIONS

Obituary 1 National Savings and Credit Bank P O Box 30067, Lusaka 0211-227534 0211-223296

By Zambanker reporter worked in various with the Bank as a Security F. OTHER FINANCIAL INSTITUTIONS
The Bank of Zambia has lost departments as a messenger Officer – Operations.
1 Credit Reference Bureau Africa Limited P O Box 31199, Lusaka 0211-224263 0211-224257
four members of staff in the and tea maker before his Mr Kamanga was born on G. LIST OF BUREAUX DE CHANGE
third quarter of 2010. Of demise. November 1 APT Bureau de Change Limited P O Box 34553, Lusaka 0211-225637 0211-221993
those who died, two were He was born in 1957. 30, 1975. 2 Atics Bureau de Change Limited P O Box 31407, Lusaka 0211-223443 0211-223443
from Security Division, one 3 A and I Bureau de Change Limited P O Box 35443, Lusaka 0211-224350 0211-224350
Mr Lewis Lupupa died on Mr Kamoza 4 Becky's Bureau de Change Limited P O Box 50727, Lusaka 0211-228217 0211-228394
from Procurement and August 21, 2010 at the Zimba died 5 Bimm Bureau de Change Limited P O Box 34656, Lusaka 0211-220647 0211-229149
Maintenance Services University Teaching Hospital o n 6 Bullion Bureau de Change Limited P O Box 33322, Lusaka 0211-235196 0211-235196
Department while the other after an illness. He joined the September
7 C & A Bureau de Change Limited P O Box 32007, Lusaka 0211-235543 0211-235543
8 Casha Bureau de Change Limited P O Box 32543, Lusaka 0211-232923 0211-223160
was from Internal Audit Bank on March 31, 2003 as a 18, 2010 9 CFB Bureau de Change Limited P O Box 38074, Lusaka 0211-226588 0211-231787
Department. Those who died Security Officer - Operations. following a 10 Challenge Bureau de Change Limited P O Box 36020, Lusaka 0211-229369 0211-229358
were Mr Francis Phiri, Mr On April 28, 2009, he was road traffic 11 Choice Bureau de Change Limited P O Box 50895, Lusaka 0211-220262 0211-220262
12 Chuvic Bureau de Change Limited P O Box 60660, L/stone 0213-327011 0213-322524
Lewis Lupupa, Mr Micheal appointed Senior Security accident. Mr 13 Citizen Bureau de Change Limited P O Box 34284, Lusaka 0211-221394 0211-230411
Kamanga and Mr Kamoza Officer - Operations, the Zimba joined 14 Dondou Bureau de Change Limited P O Box 23110, Kitwe 0212-232017 0212-232017
Zimba. position he held at the time of the Bank on 15 EL Thomas Bureau de Change Limited P O Box 31343, Lusaka 0211-222879 0211-222879
Mr Francis Phiri died on July his demise. May 5, 2008 Mr Kamanga 16 Elite Bureau de Change Limited P O Box 60987, Livingstone 0213-322660 0213-322660
17 Flex Bureau de Change Limited P O Box 37804, Lusaka 0211-225316 0211-231344
19, 2010 at the University B e f o r e as an Internal 18 FS Bureau de Change Limited P O Box 34882, Lusaka 0211-222064 0211-223879
Te a c h i n g joining the Auditor in the 19 Forex King Bureau de Change Limited P O Box 36175, Lusaka 0211-236730 0211-236730
Hospital after Bank, he had Internal 20 FX Africa Bureau de Change Limited P O Box 51086 RW, Lusaka 0211-232363 0211-232276
21 Golden Coin Bureau de Change Limited P O Box 36552, Lusaka 0211-235850 0211-235851
an illness. Mr worked for A u d i t 22 Goldfield Bureau de Change Limited P O Box 32253, Lusaka 0211-233847 0211-233847
Phiri joined Zambia Police department. 23 M & T Bureau de Change Limited P O Box 31249, Lusaka 0211-251438 0211-251438
the Bank on as a Police B e f o r e 24 Mill Bureau de Change Limited P O Box 34647, Lusaka 0211-235974 0211-235974
October 1, officer based joining the
25 NyamiNyami Bureau de Change Ltd P O Box 60936, L/stone 0213-322489 0213-322489
26 Northmead Bureau de Change Limited P O Box 36648, Lusaka 0211-290426 0211-290426
1980 as a at State Bank, he had 27 Roseco Bureau de Change Limited P O Box 39044, Lusaka 0977-108060
g e n e r a l House. worked for 28 Runnymede Bureau de Change Limited Private Bag 383X, Lusaka 0211-261978 0211-261958
worker in the Mr Lupupa National 29 Saints Bureau de Change Limited P O Box 51428, Lusaka 0211-227939 0211-227939
30 Sterling Bureau de Change Limited P O Box 70658, Ndola 0212-620825 0212-621415
Estates and was born in Pe n s i o n 31 Stero Bureau de Change Limited P O Box 33604, Lusaka 0211-222736 0211-222736
Properties 1973. S c h e m e 32 Struts Bureau de Change Limited P O Box 36341, Lusaka 0211-256378 0211-268320
Department Mr Micheal Authority 33 Swift Bureau de Change Limited P O Box 32882, Lusaka 0211-223012 0211-222788
Mr Lupupa Mr Zimba 34 Unifinance Bureau de Change Limited P O Box 35495, Lusaka 0211-237575 0211-227342
n o w Mr Phiri Kamanga (NAPSA) as 35 Variety Bureau de Change Limited P O Box 32152, Lusaka 0211-235445 0211-233481
Procurement and died on September 6, 2010 an Assistant Internal 36 Walk Tall Bureau de Change Limited P O Box 73819, Ndola 0212-621929
Maintenance Services after an illness, less than two Auditor. He had also worked 37 Zampost Bureau de Change Limited P O Box 30003, Lusaka 0211-220563 0211-220567
Department. months after joining the for Ernst & Young as a Pre- 38 Zanwiche Bureau de Change Limited P O Box 31129, Lusaka 0211-233282 0211-233282
39 Gobena Bureau de Change Limited P O Box 34247, Lusaka 0211-287262 0211-287262
In 1991, Mr Phiri was Bank on secondment. Mr Senior Auditor. 40 RADOX Bureau de Change Limited P O Box FW 467, Lusaka 0211-227864 0211-227864
appointed as Office Orderly Kamanga was seconded to Mr Zimba was born on 41 Crusade Bureau de Change Limited P O Box 31879, Lusaka 0211 264601 0211-264601
under the General Services the Bank from Zambia Police February 14, 1975. 42 Dilt Bureau de Change Limited P O Box 36413, Lusaka 0211-228749 0211-228749
department. Mr Phiri had 43 Presans Bureau de Change Limited P O Box 38723, Lusaka
on July 28, 2010. He was May their souls rest in peace. 44 Floodgates Forex Bureau de Change Limited P O Box 34559, Lusaka 0211-234658 0211-234658

A BANK OF ZAMBIA JOURNAL 14 ZAMBANKER SEPTEMBER 2010

 FEATURE

Regional office visits Kansanshi mine actual construction only road in Chingola was not
began in 2003 and was enough, the second night in
completed in 2005. Solwezi brought with it some
Kansanshi produced its first exciting revelations.
copper cathode on 23rd March The team had to endure a
2005. rather long wait for a meal in a
From that time production has local restaurant, after having
steadily increased and more taken the bold decision that
than USD 600 million has they would not leave the
been invested in the mining North West without sampling
operations by First Quantum the local cuisine.
Minerals since inception. Assistant Manager Banking -
The Mine currently employs Front Office, Mukuka Puta
about 4,000 people across the who was also part of the
Mine site. group, described the visit to
It has also created a lot of the caves as because it was as
business opportunities for good as seeing God's hand at
business houses in Solwezi work.
who either supply or service He said the view points are at
contracts with the Mine. different height levels, and so
The Manager's circle, entirely managing the whole walk
financed by individual around proved too strenuous
contributions from members for some of the staff members.
of staff on a monthly standard “The literature and pictures
token to an account in depicting other recognized
banking office, has through sites in the country proved
the years done exceptionally very educative and the staff
well in trying to encourage managing the site was found
and maintain the visit Zambia to be highly informed and
campaign which was helpful to the team,” Mr Puta
Some members of the Regional Office Managers’ Circle seem to be “marooned” aboard the “mariner” at Mutanda Falls in Solwezi. They, launched sometime back. said.
however, don’t appear to be looking for any help at all! The tours, which are taken He said it was always a
once every so often, are in challenge to organise a group
By Zambanker reporter excursions to Mfuwe National borders with Angola and the government. as diverse as a team of
recognition of the fact that
The Regional Office Park, visits to Chaminuka and Democratic Republic of The Mine which is probably Managers, because once in a
within the confines of the
Manager's Circle recently took the world famed Victoria Falls Congo. one of the oldest in Zambia while someone puts their
offices, people are not able to
an excursion to North- in Livingstone, to mention but Kansanshi Mine produces and dates back to the 4th adequately reach out to each interest before the collective
Western Province to tour what a few. about 40% of the total copper Century over 1, 600 years interest of the group.
other as individuals to a level
is currently one of Zambia's This year the team was exported from Zambia. In ago. In 1899 the mine was He, however, said dealing
where they can know one
largest copper producing treated to a magnificent tour that respect, Kansanshi is rediscovered by Mr. George with these types of people
another sufficiently to
mines, Kansanshi. of the Kansanshi Copper Mine helping the country to earn Grey, who hailed from added to the fun as long as it
understand the other's
The Manager's Circle has in in Solwezi, found in the the much-needed foreign Scotland. remained within reasonable
strengths and weaknesses.
the past few years taken North-Western Province of exchange and is also First Quantum Minerals, a limits, and adding that
The tour to the North West
excursions to the famous Zambia, which happens to be contributing to economic Canadian Company bought attempts had been made in
comprised of twenty-two
Chimfushi orphanage in the second largest province development through the the business from Phelps the past to rotate the
members, including Regional
Chingola, four separate after Northern Province and payment of taxes to the Dodge in the year 2001, but organizers, but there were not
Director Morris Mulomba,
who also took some time off to too many volunteers and at
visit the Mine. times the ones that
CROSSWORD PUZZLE 26 The tour was deemed exciting
and fulfilling in that it
volunteered were not able to
negotiate accommodation
ACROSS spanned over education and rates.
1 2 3 4 5 6 leisure, and offered them the After viewing the caves, the
7. Computers (6) opportunity to visit one of team had a sumptuous lunch
8. Trustworthy (4, 4) Zambia's oldest mines. at Chabanga Lodge Solwezi,
9. Repairs (6) As the trip was reaching some after which they started off on
levels of crescendo, the team the 30km journey to Mutanda
12. Penniless (5) woke up to a rather rude Waterfalls.
7 shock after some of the team To add to the exciting
13. Adjust (5)
members found themselves moments of their visit, the
14. Present (5)
wading in pools of water as team held a cocktail at the
16. Consider (5) 8 their rooms were flooded due Chabanga Lodge swimming
19. Delight (6) to leaking pipes at a pool area, although it was
prominent Hotel in Chingola, reported that their guests only
20. Connectable (8) 9 10 11 started arriving for the
where they spent their first
21. Continent (6) night on the road. function after 20:00 hours.
23. Deadlock (9) Upon reaching their The team started their journey
12 back to Ndola the following
destination, the site visit
started off in the boardroom day only to develop a
DOWN with an overview of the Mine, mechanical fault, forcing the
13 14 15 conducted by Kansanshi team to stop at least every
1. River (7)
Mines Plc Manager in Charge three kilometers to manually
2. Volume (9) of Public Relations, Godfrey assist the fuel pump, resulting
16 17 18
3. Apprentice (6) Msiska. in the journey taking longer
4. Transcend (6) The team then embarked on a than expected.
tour of the whole mine works, After arrival in Chingola, the
5. Uproar (3) 19 team had to leave the BoZ bus
ranging from the pit which is
6. Charges (5) cited as a vintage point, to the at Chingola Police Station and
20 crusher plants and the copper transfer onto a chartered bus,
10. Fable (4)
cathode plant. which brought them back
11. Sugar Estate (9) The Kifubwa River caves, home to Ndola.
12. Tidings (4) recognized as a heritage site Though the team experienced
21 22
and now adopted by the Bank some problems on the way,
15. Designation, they still look forward to the
of Zambia was their next stop.
Period (4, 3) While there, the group learnt next outing which points
17. Fish, Insect (3, 3) more on the history of the towards a nearby intensive
caves and its surrounding dairy, beef, poultry, and
18. Gracious (6) areas. vegetable farm and managed
23
19. Ideas (5) As if their first night on the by expatriate missionaries.
22. Knock (3)
Views expressed in this publication are not necessarily
those of the Bank of Zambia Management or the Editor
Head Office Regional Office
Accross Bank of Zambia, Bank of Zambia,
7. Counts 8. Bona fide 9. Amends 12. Needy 13. Inure 14. Token 16. Weigh 19. Please Bank Square, Cairo Road Buteko Avenue,
P. O. Box 30080 P. O. Box 71511
20. Linkable 21. Africa 23. Stalement Lusaka 10101, Zambia Ndola, Zambia
Tel: + 260 1 228888/228903-20, Tel: +260 2 611633-52,
DOWN Fax: + 260 1 221764/237070 Fax: + 260 2 614251
Telex: Za41560, E-mail:[email protected], Telex: Za30100, E-mail:[email protected],
1. Zambezi 2. Magnitude 3. Novice 4. Exceed 5. Din 6. Costs 10. Myth Website: www.boz.zm Website: www.boz.zm
11. Nakambala 12. News 15. Name, Age 17. Eel, Ant 18. Genial 19. Plans 22. Rap Produced and Published by the Public Relations Division,
Bank of Zambia

A BANK OF ZAMBIA JOURNAL 15 ZAMBANKER SEPTEMBER 2010

16 A BANK OF ZAMBIA JOURNAL SPORTS NEWS SEPTEMBER 2010

BoZ Madalas discover

a winning formula
By Zambanker reporter score sheet in the 13th minute fulltime, Nimon Muleya was
Jacob Lungu scored a brace, when he connected a superb introduced for Kelvin Seta,
while Willard Chuulu, James cross from overlapping who limped out of the game
Chonya and Mickey Phiri had defender Lazarous Siluonde with a hamstring injury.
their names added onto the who was on the left flank. The madalas were further
score sheet with a goal each, BoZ commanded the midfield awarded a penalty after the
after the Bank of Zambia (BoZ) marshaled by Morgan Kamwala High School team
madalas football team Kalunga and Joseph Tembo goalkeeper committed a foul
thrashed Kamwala High and the exchange of passes in in his 18 yard when he brought
School members of staff the area made them create a down Willard Chuulu barely
football team in a friendly chance for Willard Chuulu, five minutes to fulltime.
match played at the BoZ who did not miss the Mickey Phiri converted the
Recreation Club. opportunity to put the spot kick after sending the
The game ended at 5 – 1 in Bankers two up. g o a l ke e p e r i n a w r o n g
favour of BoZ. Lungu scored his second goal direction.
With this result, the BoZ team in the first half, giving the Defender James Chonya put
recorded three games madalas a 3 – 0 lead at half the icing on the cake when he
unbeaten consecutively, after time, courtesy of a pass by scored during added time
a 1-7 win against Rhodes Park defender, James Chonya. making it his first goal this
employees played at Rhodes After the break, the teachers season.
Park School and a 7-0 white- looked a bit more organized The next game on the cards is
wash against MTN played at and managed to get a between madalas and the law
the BoZ Social Club. consolation goal through their enforcers – Road Transport
Members of the BoZ Madalas team caught strategizing at half-time during their match against Kamwala High School Top scorer Jacob Lungu had top man. and Safety Agency (RTSA).
Teachers at the Lusaka BoZ Social Club. Kamwala humbly lost 5-1. his name added first on the With 15 minutes before

Madalas emerge victorious over Book World

Counterfeit Banknotes By Zambanker reporter
Book World kicked off in high gear
scoring their first goal in under a
sprawled on the turf feeling the effects
of the whirl wind generated by the
shot. With scores at 1-1, Book World
The Bank of Zambia wishes to Check the quality of printing: the lines minute after the first whistle. The turned a new chapter with clear intent
alert members of the public the Bank of Zambia goal minder Mr. to restoring their lead. While BoZ was
should be sharp, well defined and
Severiano Tembo could not live up to still celebrating the equaliser, Book
need to take precautionary colours should be both clear and
his old reputation of “Seve save us” as World scored a superb volley forcing
measures, especially when distinct; and Book World flipped pages in quick the BoZ goal keeper to stretch beyond
dealing with high value Zambian Check the Security thread: genuine succession towards the BoZ goal human limit but could not still stop the
Kwacha and foreign currency banknotes have an embedded mouth. Seve's old legs could not ball from going in.
notes as these are the most thread that appears as a bold generate sufficient torque to lift off and BoZ, who had momentarily
frequently targeted by continuous thread when held dive as the Book World striker placed slumbered, only to be awoken by Book
counterfeiters. against light and has a series of the ball into the far post, well beyond World's second goal pushed forward,
dashes under normal light Seve's reach. pinning their opponents in their own
If you suspect a banknote to be conditions. In addition for K50, After cranking their aging engines for half. The pressure paid dividends just
counterfeit, please compare it 000.00 and K20, 000.00 notes, the about 20 minutes, the BoZ team got before half time, BoZ was awarded a
with a genuine banknote. Avoid colour of the thread changes into the rythm, displaying fascinating penalty after a Book World defender
dealing with banknotes in dark football, dominating the midfield with handled the ball inside the 18 area.
depending on the viewing angle.
Goodson Kataya and Joseph Tembo The spot kick was executed by the no-
places or in areas where there is
controlling affairs in the middle of the nonsense defensive midfield dynamo
poor lighting. Never be in a hurry Hologram: This appears as a silvery park. Goodson Kataya.
when dealing with the banknotes, or gold colour patch in form of a Book World succumbed to immense At half time scores were level at 2-2. Jacob
particularly, when dealing with flying eagle, map of Zambia and pressure mounted by the fast On resumption, with old engines up Mickey and Kedrick. BoZ continued to
bulk cash. Always ensure that the head of an eagle on a K50, 000.00, improving and bullish BoZ. In the 25
th
and running, the Bankers sterilised make in-roads, with the visitors
banknotes face the same side K20, 000.00 and K10, 000.00 note minute, a well calculated defence- every move made by their opponents chasing shadows as BoZ madalas
and are of the same size and respectively. splitting pass from slick Willard and mopped up all their scoring interchanged neat passes. Man of the
denomination before you start Chuulu to Jacob Lungu, who rounded chances. To reinvigorate the team, match, Slick Willard Chuulu scored a
counting your banknotes. Always feel, tilt and look at your up two defenders and unleashed a BoZ made changes in the 60th minute brace, scoring the third and fourth
Remember that you do not need banknotes before transacting to power shot inside the 18 area left the bringing in Abel “2 minutes” Shimba, goals. The match ended 4-3 in favour
special machines to detect a youthful Book World goal keeper Andrew Phiri and Tobias for Jacob, of BoZ madalas.
avoid being cheated.
counterfeit banknote. Usually,
the following simple checks will Remember that it is a criminal
suffice: offence to possess or tender a
counterfeit note.
Feel the quality of the paper and
intaglio print: the security paper If in doubt or for further clarification,
and special printing process give please contact the Police or:
genuine banknotes a unique feel.
If the note is in reasonable
condition, it should be crisp, not
limp or waxy.

Look at the watermark: the

watermark should be barely
visible until the note is held
against light and a clearly defined
portrait of a Fish Eagle should be
visible from both sides of the note.

Scrutinise Serial numbers: all HEAD OF PUBLIC RELATIONS

banknotes have unique serial Bank of Zambia,
numbers that run vertically and P. O. Box 30080
horizontally. If you come across LUSAKA
two notes with the same number,
one or both of them may be Tel: 211 228888 Fax: 211
counterfeit. 221764
E-mail: [email protected]
www.boz.zm BoZ netball team players Caron Hamafonko, Team Trainer Timothy Kalenga, Lubinda, Rebecca Njovu, Luckness
Msiska and Sheila Kasaro after a gruelling match against Kamwala High School Teachers at the BoZ Social Club

PRODUCED AND PUBLISHED BY THE BANK OF ZAMBIA, PUBLIC RELATIONS DIVISION, GRAPHICS: CHISAMBA EVANS,