Delays to Appoint Bank of Zambia Governor Affecting Injection of Capital

Former Bank of Zambia Governor Caleb Fundanga

The labour movement in the financial sector says lack of a Governor at the Bank of Zambia undermines the respect due to the institution.

Zambia Union of Financial Institutions and Allied Workers–ZUFIAW- President, Cephas Mukuka said the state of affairs is hampering investors’ injection of capital in to the country.

The dismissal of Central bank governor Caleb Fundanga with six months to go on his contract also raised eyebrows among investors, who had approved of his tight grip on prices and oversight of the kwacha currency.

Mr. Mukuka told MUVI TV BUSINESS News that the position of Bank of Zambia Governor is critical to Zambia’s economy.

It is almost three months now since the former governor Dr Caleb Fundanga was relieved of his duties. President Sata is yet to appoint a successor.

Dr Caleb Mailoni Fundanga had served as Governor of the Bank of Zambia since March of 2002.

He was appointed Governor, after serving as Senior Advisor to the President of the African Development Bank in Abidjan, Cote D’voire from 1998.

Dr. Fundanga further served as an Executive Director at the African Development Bank.

Dr. Fundanga also served as Permanent Secretary in the Ministry of Finance for six years at Cabinet Office before finally winding up in the Office of the President as Permanent Secretary in charge of the National Commission for Development Planning.

Dr.Fundanga was at the helm of the sale of Finance bank.Finance bank had been sold to First Rand Bank of South Africa by the previous government for alleged breach of the Banking and Financial services Act.According to a Government Gazette notice on the possession of Finance Bank Zambia Limited,the Finance Bank chairperson Rajan Mahtani had been named as having been involved in indirect acquisition of shares into the bank through complex arrangements that violated the law.

However in a dramatic turn of events,President Michael Sata after taking office instructed Finance minister Alexander Chikwanda to return Finance Bank Zambia Limited to its previous owners after firing Dr.Caleb Fundanga.


  1. vote

    Sata wants to maximise his loot at BOZ with his cousin, Chikwanda while there is no one in full authority.

  2. vote

    Investor confidence! Surely, before dismissing Fundanga, the president should have had someone in mind to replace him. Alternatively, Fundanga had six months left on his contract and the same six months should have been used to search for his successor before dismissing him.

  3. vote

    the bank is still functioning isnt it? Leave the position open, wasnt Fundanga useless enought?

  4. vote

    The president is doing some consultations on who to appoint as BOZ governor its a big position so give president sata time to find a competent personel and stop yapping.

    • vote

      It is you who is yapping!  How can Sata consult for 90 days without finding a replacement?  How incompetent is that!

  5. vote

    Meanwhile, we are left with 7 days to the end of the now infamous 90 days…90 days of no BOZ Board and no BOZ Govverner…

  6. vote

    Has he run out of Bembas? His nephew Miles Sampa said “according to the laws probability of normal distribution, you are more likely to find Bembas than any other tribe!” Whatever school Sampa , I would never send my kids there!

  7. vote

    Theres is so much hate in zambia,you wonder were this country is headed.surely you can not keep insulting your leaders and at the same time wasting time calling each other names,when the rest of the world is making progress.Theres is alot of work that needs to be done in zambia.lets try to put our heads together and save mother zambia.

  8. vote

    Sata is palying delaying tactics so that he will promote his Bemba deputy governor to be full governor with a pretex that the bank had continued to function under him. He wants to put more money in the pockets of Bembas.

  9. vote

    If Chikwanda was recalled why not Wila Mung’omba as BOZ governor? Maybe the regional balancing calls in appointments is causing the delays as consultations are going on or at # 10 we could be close to the truth

  10. vote

    Put HH kaili afwaya ukuba pa top lyonse. The supporters are always praising him as a smart intelligent educated rich Tonga bull who is above board. BUSHE WHEN IS CEEC GOING TO START DISBURSING FUNDS FOR PROJECTS. LUANSHYA HAS NEVER BENEFITTED FROM CEEC PLIZ DG HELP US @ LEAST A RESPONSE TO SAY 1 DOES NOT QUALIFY IS BETTER

  11. vote

    @Chapman thanks for your well thought through comments. The nation needs more people of your thought process. I support you fully.

  12. vote

    Sata  wanted to appoint another Bemba, he was challenged on facebook, so i guess he is trying to buy time. The day he appoints another Bemba, I would like to call for national protest by the civil society with they are worth any salt.

  13. vote

    The Bank of Zambia is working business as usual the world is not falling apart. There are economists and managers working hard to keep the country going at the Bank of Zambia.Give the Sata Govt time to pick the right person to be the Governor of the Bank of Zambia.Stop the NON-SENSE of doom-say about investor confidence and foreign investment flight what a joke.Grow up and understand there are alot of problems in Zambia which needs immediate and urgent attention Clinics and Hospitals without MRI,T-Scan,EKG,X-Ray, and the basic drugs,The country has too many Primary Schools without desks the list is long.

    • vote

      You are blank on many issues especially about the BOZ chief.There should be one all the time and there should be continuity.In organised countries the mere sickness of a central bank Governor plunges the currency but we can afford not to have one!It defies logic.GOD BLESS ZAMBIA.

  14. vote

    Its just unbelievable that you can run a country without a central bank governor!I just dont know where this country is headed.Mr Sata must come clean on this one.BOZ is life and is everything.GOD BLESS ZAMBIA.

  15. vote

    Can Caphas Mukuka explapn in DETAIL how this situation has affected investor confidence. Please give us real examples. Our KEY investors have not complained. The bank is functioning. Lets not just issue statements for the sake of some publicity.

  16. vote

    Sata is buying time to elevate the current Deputy Governor into the top slot. Its sad the blatant tribalism that is going on. That which we sow, is what we reap. The day of reckoning will sure come!

  17. vote

    Prof. Oliver Saasa is eminently qualified for the job. He has so far proved to be non-political or non-partisan in his constant advice to govt on economic / financial matters. Let us avoid being petty in debating this national crucial matter.

  18. vote

    if yo have a sevant whom you want to fire, must you wait until you replace or you just fire and replace at your own will? i think the later makes more sense than have someone you dont need around.

  19. vote

    Wrong move Miles, you could have been BOZ governor by now. Anyway you are dumped minister for Lusaka. Smart quick advise, resign as minister and mp and became governor. How cool is that? Ney…………. too late for you, u need more qualification than just being a nephew and bemba. You probability will not work this time.

  20. vote

    # 24 mind you

    Oliver Saasa is not a cadre and I doubt where he is from? The position needs someone with a political inclination and should come from area suitable for appointment.

  21. vote


  22. vote

    I am sure they want to appoint Bwalya Ng’andu. Now they are trying to fake external pressure so that they can justify appointing this Psychologist as central bank Governor. SHAME!!!!!

  23. vote

    Ati he has run out of bembas lol. But seriously whats the hitch? To say BOZ is operating smoothly without a Governor is serious lack of basic understanding of Business.

  24. vote

    I think this governor issue is being politicised to far. A new regime needs to change a governor because he does not necessarily carry forward the economic policies of the regime. There are many suitable persons who can take that job. The position of governor is more of a ceremonial one than a functional one. The two deputy governors can perform this duty whilst a governor is being sort after.

  25. vote

    A timely warning was sounded earlier at birth of PF govt. to appoint credible individual as BOZ governor and international community scrutinise that appointment. You may say O! its Zambian BOZ or PF govt priority to appoint, yes but BOZ governor has to be acceptable internationally failure spells doom to Zambian finacial and monetary accessibility,borrowing arrangements, donor and investment confidence. Bwalya Ng’andu is not better suited for that post as has a failure tag over him with DBZ and personal integrity. There atr credible Zambians out there let PF government do some searching.

  26. vote

    @32 Character Assassin 00 the remit of a central Bank Governor does not change no matter who is in power. The role of the Governor is to manage monetary policy. Period. This task does not change whichever party is in power. In the USA the Chairman (Governor) of the Federal Reserve Alan Green Span served Reagan, Bush 1 and Clinton. The Current one Bernanke was appointed during Republican Bush II’s term. Bernanke is still serving under Obama. In the UK George the Governor of the Bank of England got his job during Blairs Labour reign and he is still serving under Cameron’s Conservatives. The point is whoever Sata is going to appoint as Governor that person is expected to do the same things that Fundanga was doing.

  27. vote


    It is you who is yapping!  How can Sata consult for 90 days without finding a replacement?  How incompetent is that!!

  28. vote


    You don’t qualify as you are under-educated with your CIMA etc etc and your unpatriotic attitude, too.  And a foreign boyfriend like Nicky is a big zero against you.  Is Scotland becoming too cold?  We thought you were enjoying it so much over there stacking shelves!

  29. vote

    Someone is calling the shorts at BOZ… whatever title you give him, he is doing the job of governor. The beauty of the plan is that he is actually governor without ratification by parliament as required by law.

    They know that if they appoint him officially, ratification will be a messy affair: tribalism issues, drunkard, womanizer, past malfeasance at DBZ, wrong academic back ground (psychologist, human resource officer).

    I don’t think they are in a hurry to ride the storm over this one!

  30. vote

    How is this hampering injection of capital by investors?

    Can someone explain please. May be Mushota can explain, seeing she’s interested in the Job.. Please do if you can, they may just give you the job.

  31. vote


    Admit it, you have no clue what you are talking about!  The BOZ Governor is not a ceremonial role.  He runs BOZ with the help of the management team, but he should know what he is doing.  The Governor even chairs the BOZ Board of Directors.  He is also the Executive Chairman, effectively. If there are so many people who can do the job, why has it taken Sata close to 90 days and crisis level without an appointment?  BOZ is not a kantemba where you let things run themselves that “fikaisova”.  Your attitude and that of your presido shows why Zambia is headed for disaster with you kaponyas.  This is not politicisation.  It is called IMMINENT DISASTER!!

  32. vote

    Ka Mushota has no accounting qualifications at all! A qualified Zambian accountant cannot fail to know that the big four accounting firms have branches in Zambia…she is just here to give us a good laugh with her weird and outrageous blogs.

  33. vote

    Can someone please explain to us in DETAIL the problems we have encoutered so far without a GOVERNOR. We are not inetersted in speculations, we need pratictical information.

  34. vote

    This is the only countryn atthe moment in the world running its economy with a central bank governor. Sata though he was smart by firing Dr. Caleb Fundanga just coz his wife stood for Chilubi constituency on MMD ticket. Now he is stuck he cant find a replacement in 90 days and time is fast ticking off. There are alot of qualified guys for the job such the current MD for DBZ dr. Abraham Mweenda and others out there. The hunt for a TRIBESMAN IS STILL ON.

  35. vote

    interesting comments all round.. if investor confidence is being impacted by the non appointment of a governor then we need to look at the type of investors we are targetting. any serious investor looks at the institutions and how they are functioning and within what framework or law. particular positions do not affect their decision to invest. having said this, it is important for the sake of good order to have this important position filled once and for all to remove all this unnecessary speculation. i can imagine that it may even affect the morale of some of the staff in the central bank.

  36. vote

    @ALL CRITICS- A central bank’s roles can be performed by the two deputy governors. Are you claiming that monetary policy has gone astray, I do not think so. And you must know that Caleb Fundanga’s ability to make decisions was compromised. His wife stood on an MMD ticket. The central bank also clearly acted as a clearing house for MMD’s revenge tactics on Mahtani.
    I know that Ben Benanke and Sir Mervin King have operated in different administrations but then you see, in developed countries there is a huge divide between monetary policy and political policy, in third world places, such divides cannot be too large!

  37. vote

    @ALL CRITICS- A central bank’s roles can be performed by the two deputy governors. Are you claiming that monetary policy has gone astray, I do not think so. And you must know that Caleb Fundanga’s ability to make decisions was compromised. His wife stood on an MMD ticket. The central bank also clearly acted as a clearing house for MMD’s revenge tactics on Mahtani.
    I know that Ben Benanke and Sir Mervin King have operated in different administrations but then you see, in developed countries there is a huge divide between monetary policy and political policy, in third world places, such divides cannot be too large!

  38. vote

    I agree totally with Chapman , well done my friend .
    I would further add that there is no place for tribalist comments in modern Zambia , If a person has being given a post by President Sata it is because of merit not tribe. Read the backgrounds of Minister Chikwanda and Deputy BOZ governor N’gandu before you judge these very capable and able men . GDP

    Growth in Zambia is 6.9% in the UK it is a pathetic 0.5 % , …… not doing too badly are they ? ? ?

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