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The Bank of Zambia has noted that weakening economic growth, load shedding and tightening liquidity in Zambia are threatening financial stability in the market.
And the Central Bank’s Monetary Policy Committee has maintained the policy rate, a key determinant in lending rates, at 10.25 percent.
BoZ Governor Denny Kalyalya says the committee took into account projected inflation remaining above the upper bound of the 6.8 percent target range, tightened liquidity and reduced production owing to electricity challenges.
Dr. Kalyalya noted that increased food prices owing to droughts in the last farming season have also had a negative toll on inflation.
He says the above factors required the upward adjustment for the policy rate but the Central Bank had to hold it pending some measures by the Ministry of Finance.
Speaking during the MPC quarterly briefing in Lusaka today Dr. Kalyalya noted that global growth has equally weakened with demand for copper by China having reduced owing to decline in investment in emerging markets and reduction in global trade due to ongoing trade tensions between the USA and China among others.
And Bank of Zambia Deputy Governor Operations Francis Chipimo said access to finance has remained a challenge for private sector growth and investment.
Dr. Chipimo however said there are a lot of developmental issues being undertaken aimed at enabling the financial sector mobilize savings and lend money to investors with ideas.
HH and President Lungu meet at late Munkombwe’s burial in Choma
By Chimwemwe Mwanza
Vicious, vindictive and vengeful aptly describes the Zambian political arena. Former Presidents, Kenneth Kaunda, Rupiah Banda and the late Frederick Chiluba all have scars to prove this. In the 80’s, Kaunda locked up Chiluba on flimsy charges that failed to hold in a court of law. After he became Head of State, Chiluba retaliated by sending Kaunda to Mukobeko maximum prison.
The irony for Chiluba is that his handpicked successor, Levy Mwanawasa motivated Parliament to waive off the latter’s immunity thereby exposing Chiluba to several graft charges formulated by the now defunct Task Force on Corruption. With his legacy tainted by a skewed narrative, only death saved Chiluba from possible jail time. To erase his predecessor’s legacy and ensure his humiliation, the late Sata’s PF re-created this trend by consigning Rupiah to a life of court appearances.
Off significance to this conversation, UPND leader, Hakainde Hichilema (HH) served time in Lilayi prison on a laughable treason charge – this at the hands of the current PF regime. For a fact, HH has never hidden his disdain for President Edgar Lungu and his stint in a tiny Lilayi prison cell has probably served to reinforce the UPND leader’s contempt for the President.
Just why such vindictiveness and blatant abuse of power seems to gratify incumbents is hard to understand. In the absence of reason, one might well speculate that this show of brutality is all about a naked flexing of political muscle – a bit more like, ‘can I show you who is the boss’. Whatever the reason, the difficulty is that this trend erodes the very democratic tenets and political maturity that Zambia is renowned for in the rest of Africa and the world over.
Which makes 2021 an interesting contest. Other than bread and butter issues, the fore mentioned factors will weigh heavily on the minds of both President Lungu and HH heading closer to the polls.
Who is likely to win?
The tiny but seismic shift in fundamentals on the ground seem to suggest that this will be a closely fought contest. Besides, recent electoral predictions across the globe – even by the most experienced pundits have gone against the grain making it even more difficult to provide an accurate outcome.
For example, in 2012, several analysts predicted an outright victory for Rupiah’s MMD only for the PF to spring a surprise. Suffice to acknowledge that, while characteristics of the Zambian electoral landscape may differ in comparison to mature democracies, there are similarities to draw from – especially in elections where the voter’s desire for change outweighs any other considerations.
Unaware of a groundswell desire for change, an over-confident former British Premier, David Cameroon called a snap referendum to determine Britain’s future in the European Union (EU). He was stunned at the outcome. Against odds, the British electorate voted for Brexit thus paving the way for what has now become Britain’s messy divorce from the EU trade block.
Humiliated by a razor thin loss to Brexit supporters, Cameroon was forced to call his time as leader of the conservative party. In yet one of the biggest election upsets of the 21st century, Donald Trump steam-rolled establishment candidate, Hillary Clinton to become the 45th President of the US. Therefore, the notion that either the PF or UPND might have an edge over the other heading towards 2021 is fallacious. Truth is, this is an election that could swing either way.
Why ECL will be desperate to win
Despite the PF’s public show of confidence, their determined focus on HH and constant whip-lashing of his perceived tribal inclinations, best illustrates their genuine fears and by extention their desperation. Rightly so, they can’t afford to be complacent. 2021 will be a referendum on their ten years in power. Be rest assured that this is one election where the PF’s well – oiled propaganda machinery will likely throw both the sink and kitchen at the UPND bearing in mind what is at stake. In fact, the proposed amendment to the constitution is intended to disadvantage the opposition ahead of the polls.
What troubles the mind is that the current constitution which the PF is attempting to discard was signed into law by the sitting President amid a jam-packed Independence stadium. Three years later, it’s tempting to ask. What has changed to warrant an amendment to this sacred document? By now, PF knows too well that the much-punted humility of their candidate might be a hard-sale more so to an electorate that appears too desperate for change. They can’t afford lethargic arguments such as they being the only party with a manifesto. Need they be reminded that having a manifesto is one thing and delivering on its content is another.
What about the promise that they would lower taxes and put more money in the pockets of the working class? Did they deliver on such including creation of job opportunities? You be the judge. The President is aware that he will be facing an electorate that is weary of rising food costs. A persistent drought over the last two seasons has only compounded the hunger situation – more so in outlying areas of the country. In addition, the policy uncertainty in mining taxation and the stand – off between government and sections of the mining community is taking its toll on economic growth. Perceptions around inaction on corruption might not help his cause either. While some of these challenges might not be, the PF’s making, the electorate always tend to punish a sitting government for their suffering – sometimes unfairly so.
Never mind whether HH has genuine or has yet to formulate charges against the PF, he has consistently warned that the PF leadership will be called to account for wrong doing once he becomes President. The tacit implication of this threat is that, HH is already extending bed spaces at Chimbokaila, Kamwala Remand and possibly Lilayi prisons for use by the PF leadership. And knowing fully well what is at stake, a possible loss is too ghastly for the PF to contemplate. For President Lungu, there will be no better motivation to win the polls than lose to a sworn rival.
Its State House or bust for HH
PF has over-exposed the country to a mountain of debt that will outlive generations to come. It is precisely why the 2021 polls will boil down to the economy. As a businessman, HH knows too well the implications of our foreign debt on the fiscus. Zambia can’t afford to keep borrowing to fund consumption and expenditure on non-productive sectors of the economy.
This is the message he has been selling the grassroots. For a fact, he has the support of the broader investment community, including some global mining giants. Most important though, the International Monetary Fund appears to have factored in his possible victory in 2021 hence their reluctance to engage the current government on a possible economic rescue package.
The question is, has the UPND leader’s message of change found resonance with the electorate? While he appeals to the affluent and middle class in Parklands, Kansenshi and Kabulonga, the grassroots in Mandevu, kwa Nagoli and Chamboli seem to be struggling to grasp his vision for the country. Be reminded that he desperately needs this voting block to win the elections.
Against the backdrop of challenges, this looks like HH’s election to lose. Fact is, he can’t afford a record of 4 election loses on the trot. Such a scenario will certainly cast him into political wilderness and the glue that’s bound the UPND together over the years will finally loosen. Is this what he wants?
It’s entirely up to him and how he manages his campaign otherwise it might just well be that he will once again fall short of expectation and hand the PF another 5 years in power. And him being such a vexatious litigant, our Supreme and Constitutional courts will likely be kept busy. Watch this space.
The author is an avid reader of political history and philosophy. He loves Nshima with game meat. For feedback contact him on kwachaoneATgmailDOTcom
Writing on his Facebook page recently, UPND Kankoyo Member of Parliament, Heartson Mabeta is wondering what has happened to the political party that Antonio Mwanza gave birth to upon severing ties with Fred M’membe’s Socialist party.
“We have laboured and sacrificed for others in the hope that they would do the best for this country. There comes a time in a man’s life when you have to take the mantle and lead and that time is here!” the former PF spokesman, renowned for his arrogance and pomposity made the grand announcement.
In apparent reference to the much hyped Ichabaiche, Mabeta took to his social media platform again, “To fund a successful Presidential campaign in Zambia, you need a minimum of 1 million dollars!”
What do we make of all this?
President Hichilema delivered a knockout punch to Edgar Lungu in the previous elections by an astounding 1 million votes, thanks to the power of the youth whom he was able to effectively engage via social media even as his opponents lampooned him as a Facebook president! Realising the significance of this particular demography in elections as they are in majority, Mpundu obviously saw a golden opportunity and came up with his so-called, “Ichabaiche.”
Mabeta obviously has his bearings wrong! One can only ignore Ichabaiche at their own peril. President Chiluba was practically penniless when he outsmarted many to be the one to slay the proverbial Goliath – Kenneth Kaunda! Ba Lungu was equally as broke as a church mouse when he surprised many to emerge as PF candidate out witting more colourful candidates such as Bob Sichinga, Miles Sampa and Christine Kaseba.
Simply put, Chiluba and Lungu’s campaigns were bankrolled by well wishers and party members who pumped in collosal sums of money for obvious reasons. Binwell is simply trying to ride on the backs of dissatisfied and disillusioned youths to hitch a quick ride to plot 1 Independence Avenue.
While we appreciate the power of the youth, we however have serious reservations about Binwell’s suitability to inspire and lead the youth movement…. maybe Christopher Kango’mbe as he’s of sober character and obviously possesses the necessary credentials such as political experience and reasonable education, and he’s not given to unnecessary theatrics.
Why do we insist Binwell is not suitable to even start dreaming about State House? When we found ourselves at the Lusaka Magistrates Court last year to offer solidarity to our dear friend, Kevin Soper who was due to testify, we were shocked to eavesdrope on a conversation of Binwell Mpundu and his colleagues from PF as they happened to occupy the benches behind us.
“Ah! Ngechi ichimusungu chaisangamo shani?” Binwell remarked upon seeing Soper.
We squirmed as we heard about their desire to castrate Soper and stuff his essentials into his mouth! We confronted the prosecutors after court session and urged them to cite the PF battalion for contempt of court as PF lawyers pleaded with us not to take that route. At this point, Binwell came demanding to know what was going on but we told him off and informed him we had heard about their evil plans. For those of you in doubt, you may search for Bill Kaping’a and Binwell Mpundu confrontation on Google; it was well captured by Kalemba. Ba UPND naimwe, you should know how to look after your foot soldiers at times; no wonder the youth keep on complaining.
As for Binwell, he should stop misleading the youth; he doesn’t have what it takes to lead this country!
Prince Bill M. Kaping’a
Political/Social Analyst
Zambezi
The nation yesterday came together in a solemn and heartfelt ceremony to honour the life and service of the late Honourable Ackson Sejani, former Cabinet Minister and Member of Parliament, who passed away while serving as Chairman of the Local Government Service Commission.
The funeral church service was held at the Anglican Cathedral of the Holy Cross on Church Road in Lusaka, attended by President Hakainde Hichilema, Vice President Mutale Nalumango ,senior government officials, members of the clergy, politicians, and mourners from across the country.
Speaking at the service, President Hichilema paid glowing tribute to the late Hon. Sejani, describing him as a “consistent, candid, and principled public servant” whose dedication to the public good shaped his every decision.
“He was a man who read the times with clarity and used every moment to advance the greater good of Zambia,” President Hichilema said.
Hon. Sejani was widely respected for his integrity, commitment to democratic ideals, and a long-standing dedication to improving local governance and public service delivery. Over the years, he held several ministerial portfolios and remained active in civic affairs up until his death.
As the Cathedral echoed with hymns and tributes, family, friends, and colleagues remembered Sejani not only for his public service but also for his humility, courage, and tireless efforts in championing transparency and justice in Zambia’s political landscape.
President Hichilema extended his deepest condolences to Mrs. Jessie Munsaka Sejani, the widow of the late minister, their children, and the wider family.
“In this time of sorrow, our thoughts and prayers are with his family and the entire nation,” he added.
In a sweeping immigration policy shift, the United States has announced that tourists from Zambia and Malawi will be the first to face mandatory visa bonds of up to $15,000 when applying for U.S. visitor visas, according to a statement released by the U.S. Department of State.
The controversial policy, set to take effect on August 20, 2025, requires B1/B2 visa applicants from the two African nations to post refundable bonds of $5,000, $10,000, or $15,000 at the time of their visa interview. The exact amount will be determined by consular officers based on individual cases.
The funds will be returned if the applicant leaves the U.S. on time or if the visa is denied or canceled before travel. However, the U.S. government will retain the bond if the individual overstays, seeks asylum, or violates the terms of their stay.
This move revives a 2020 policy proposed by former President Donald Trump but never enforced due to the COVID-19 pandemic. Now in his second term, Trump is intensifying his hardline stance on immigration, citing the need to address high overstay rates and improve screening from certain nations.
“This targeted, common-sense measure reinforces the administration’s commitment to U.S. immigration law while deterring visa overstays,” said State Department spokesperson Tammy Bruce.
A spokesperson added that the bond requirement is aimed at countries with “high overstay rates, screening and vetting deficiencies, and foreign policy considerations.” More countries are expected to be added to the list as the pilot program expands.
Implications for Travelers from Malawi and Zambia
The announcement has drawn concern from immigration experts, diplomats, and travelers alike. While the bond is technically refundable, critics argue it creates a significant financial barrier for legitimate tourists and families.
High upfront cost: Many potential visitors may struggle to raise $15,000 in advance, even if the funds are later returned.
Limited flexibility: The visa comes with a single-entry and a maximum 30-day stay, making it unsuitable for extended visits or emergencies.
Complex logistics: Travelers must navigate a bond posting system, departure compliance tracking, and refund procedures, with any errors risking forfeiture.
“This program could unintentionally punish honest visitors from lower-income backgrounds while doing little to curb actual visa violations,” said one immigration attorney.
The private sector is also sounding alarms. Companies that depend on international travel for meetings, partnerships, and technical training fear operational disruptions.
“Business travel from Zambia and Malawi will become more difficult,” said a trade consultant. “These rules could push companies to move their meetings or investments elsewhere.”
Tourism operators in the U.S. also worry the policy will drive away much-needed visitors, especially from Africa, a region where U.S. tourism is trying to gain ground.
As the world watches how this visa bond experiment unfolds, one thing is clear: U.S. immigration remains on a path of increasing scrutiny, with growing costs and complexity for many would-be visitors.
Minister of Finance and National Planning, Situmbeko Musokotwane has announced government’s extension of the International Monetary Fund (IMF) Extended Credit Facility (ECF) programme by one year.
Dr Musokotwane says the IMF-ECF programme, which commenced in August 2022 and was scheduled to end in October, 2025, has been extended by the government following a recent Cabinet resolution.
He also said the IMF-EFC programme will among other things help build Zambia’s investor confidence and offer financial support of about US$145 million to Zambia.
The Minister was speaking in Lusaka during a media briefing.He also clarified that the export tax on copper concentrate has only been suspended for three months and not abolished as reported by some sections of the media.
Dr Situmbeko explained that the suspension of the said tax was done in agreement with mining companies so as to increase the processing of copper locally.
A sharp correction in US stock markets is now a “real and rising” threat, warns Nigel Green, CEO of global financial advisory deVere Group.
His warning that a decline of up to 10% could hit this quarter joins a growing chorus of global financial institutions that see the current optimism in US markets as dangerously disconnected from deteriorating fundamentals.
“This market appears confident, but beneath the surface, the risks are accelerating,” says Nigel Green.
“We believe a US correction of as much as 10% is a growing probability. The disconnect between buoyant sentiment and weakening economic signals can only stretch so far.”
Despite Wall Street’s strong performance this year—fueled by a 30% surge in the S&P 500—key macro indicators are pointing in the opposite direction.
He continues: “Inflationary pressures remain persistent, consumer demand is softening, and wage growth is beginning to erode corporate margins.
“Meanwhile, President Trump’s revived trade war is already leaving its mark: businesses are grappling with rising input costs, while consumers are starting to feel the squeeze.”
Trade frictions are feeding directly into prices and margins. That’s slowing consumer spending, weighing on growth, and pushing companies to reconsider hiring plans.
The ripple effects are becoming clear. “This is policy-induced pressure that will take time to work through the system.”
US job growth, long a pillar of the post-pandemic recovery, has shown signs of cooling in recent weeks.
New hiring data reveals a steady uptick in unemployment claims, while wage pressures persist—raising the risk of stagflation if inflation re-accelerates while growth stalls.
Earnings guidance across sectors has also turned cautious as margins tighten and companies brace for softer demand.
“Markets are behaving as though the best-case scenario is guaranteed—continued growth, tame inflation, political stability. But that narrative is fraying,” Nigel Green says.
“Investors who are heavily concentrated in US equities need to start repositioning now.”
The danger isn’t just that a correction is coming; it’s that few investors appear ready for it. Underneath the rally, core indicators are deteriorating.
The latest ISM services index showed its first contraction in more than a year. Consumer confidence is down. Inflation in core goods categories is beginning to edge higher again as tariffs feed through supply chains.
“This rally is being held together by hope and habit. Once sentiment turns, there won’t be time to rethink positioning. That’s why we’re urging serious global diversification now—not later,” adds the deVere chief executive.
deVere is helping clients reduce US overexposure and seek more balanced opportunities abroad—particularly in markets where policy risk is lower and fundamentals are stronger.
Singapore remains a standout. The Straits Times Index has advanced nearly 5% over the past month, supported by stable exports, healthy services demand, and ongoing confidence in the region’s financial hub status. Its inflation remains well-controlled, while business confidence remains robust.
Europe, too, is drawing fresh attention. Germany’s DAX has gained over 3% as industrial output improves and recession fears ease. The FTSE 100 continues to attract yield-seeking capital, while European policymakers adopt a steadier stance amid global volatility.
“The time for global diversification isn’t after the correction. It’s before it,” Nigel Green says.
“Those who wait for confirmation will miss the opportunity to protect gains and capture global upside.”
He insists this isn’t just a risk-mitigation exercise—it’s a strategic realignment.
“We’re identifying opportunity where fundamentals justify it. This means parts of Asia, selective European sectors, and emerging markets with disciplined policy frameworks and long-term demographic support.”
The warning is clear. Inflation may rise again, growth is losing pace, the labor market is softening, and trade tensions are worsening. The illusion of US exceptionalism is vulnerable.
“Should a correction hit, it might be sudden. But the signs are already here for anyone who’s looking,” says Nigel Green. “Global exposure is no longer optional, it’s essential.”
About 500 uniformed officers have been deployed to Mfuwe Constituency ahead of the parliamentary by-election scheduled for Thursday, August 7, 2025, in Lavushimanda District of Muchinga Province.
The deployed personnel include officers from the Zambia Police Service, Department of National Parks and Wildlife and Council Police.
Muchinga Province Police Commanding Officer, Dennis Moola, said the number of officers is sufficient to ensure safety throughout the election period.
“This is to ensure total security for people, materials and property before, during and after the election,” Mr Moola stated during a briefing at Pentecostal Assemblies of God Church in Mununga.” he added.
And Electoral Commission of Zambia (ECZ) Commissioner Major General Vincent Mukanda (Rtd) acknowledged the importance of law enforcement in the electoral process.
Mine Workers Union of Zambia (MUZ) General Secretary George Mumba says effective dialogue is needed urgently to sort out the impasse surrounding mining by small scale miners at Senseli Open Pit Mine in Chingola.
One person died and several properties were destroyed as fresh riots erupted in Chingola after the informal miners were denied access to the Senseli Open Pit Mine this week.
Mr. Mumba said there should be real engagement involving the mine owners, Government and the youths involved in informal mining at Senseli.
He said minerals should benefit the people through formalised and safe mining.
”I think the engagement in Chingola should be real. I think there is a need for serious dialogue so that overall the win-win situation is found. If you look at the youths in Chingola that is the only thing they have so obviously an indicator is that it is because they are being told to move out and when they reflect they realise that it is literally cutting their source of living,” Mr. Mumba told Radio Icengelo News at Katilungu House in Kitwe.
”So how best can we have a win-win situation? That’s why there is a need to sit around the table so that overall we can have safe mining, local empowerment and we have the owners of the mine benefit,” he said.
The first time I read somewhere that the Attorney General of Zambia had submitted the “suspended benefits” argument to the High Court in Pretoria, I thought it was just fake news. There’s no way the Attorney General of Zambia with his entire team of lawyers can make such a simple blunder in logic. Or so I thought.
To my utter shock, I could not believe my ears when I watched a brief segment of the televised court case and heard the South African lawyer present this argument on behalf of the Zambian government. Even more surprising, neither the family’s lawyer nor the judges pointed out the simple blunder they made, which should have ended the Attorney General’s case immediately.
So what is this “suspended benefits” blunder?
Let’s examine it briefly. The Zambian law says that if a former president of Zambia goes back into active politics, he loses all his former-president benefits. Which means, as long as you are in active politics, the state won’t assist your family with burial costs if you die. In order to give some legal standing for the government’s imposing involvement in the Edgar Lungu burial case, the AG argued that when a president dies, those benefits are restored even if he lost them while alive, which gives the state the legal duty of executing it. Which means these benefits were just suspended when he got into politics, according to the AG. This includes his benefit of a burial sponsored by the state, which he lost due to active politics, but now is restored.
However, it makes zero logical sense that your burial benefit can be restored once you die. How can it be restored by your death when it was precisely a statement about what should happen if that death happens while you are in active politics? It essentially says if you die while in active politics, you are going to lose something: you won’t get any burial assistance from the state. That can’t be unsuspended by the same act of dying!
This obvious blunder should be clear to anyone who thinks about it now. But let’s give a hypothetical example, just in case someone still can’t see the blatant contradiction.
Suppose there was a law of benefits that says that a president’s face will be put on future currency after he dies. But if you get back to active politics, the law warns, you will lose this “honour.” Well, if the person dies while in active politics, it’s logically impossible that that same death can be what restores that benefit. It’s a clear self-contradiction because it means that both the presidents who got into active politics and those who did not end up getting the same posthumous benefit!
By arguing that the benefits are restored by one’s death, the AG was saying they were not even suspended in the first place, since they were still going to happen anyway, no matter what. In short, you might as well just say that a president never loses posthumous benefits even if he goes into active politics since there is no scenario in which they are truly lost. But that would contradict the same law because it explicitly says you lose all your listed state benefits, including posthumous ones.
What this means is that the AG or the state actually had no legal authority whatsoever for making any demands on the family of former president Lungu.
The funny thing about all this is that the family of Edgar Lungu will end up gaining all the other benefits illegally, just because of the logical blunder made by the AG. Since he is saying all the benefits are restored, the government is now obliged to give them the cars, house, and so on. My expectation, however, is that the UPND government will later still have someone challenge this illogical interpretation of the law made by their own AG so that they can rescind the benefits from the Lungu family.
The author, Chanda Chisala, is the Founder of Zambia Online and Khama Institute. He is formerly a John S. Knight Fellow at Stanford University and Visiting Scholar to the Hoover Institution, a policy think tank at Stanford. He was also a Reagan Fellow at the National Endowment for Democracy (NED) in Washington, DC. You can follow him on Facebook at https://www.facebook.com/chandachisala
The Bankers Association of Zambia (BAZ) has raised serious concerns over the continued use of cash in the Zambian economy, warning that it remains a key enabler of money laundering and other illicit financial activities.
The remarks were made following the launch of the Financial Intelligence Centre’s (FIC) 2024 Money Laundering and Terrorism Financing Trends Report. In a media statement released to the media, BAZ applauded the FIC for its tenth consecutive report and expressed appreciation for the recognition given to the banking sector’s strong compliance with Anti-Money Laundering and Countering the Financing of Terrorism and Proliferation (AML/CFTP) requirements.
According to the report, Zambia recorded Illicit Financial Flows (IFFs) amounting to USD 3.5 billion in 2024, largely driven by commercial activities linked to multinational enterprises. One of the more notable incidents included a ZMW 10 million fraud case, where funds were siphoned primarily through cash withdrawals at ATMs and mobile money agents. BAZ confirmed that the matter is currently under investigation by law enforcement agencies.
While digital financial services (DFS) have become more prevalent, BAZ highlighted that cash remains a dominant method of transaction, often facilitating illegal financial flows due to its anonymous and untraceable nature.
“Cash transactions are often used to obscure the source and destination of illicit funds, posing challenges for financial institutions to detect suspicious activities,” the Association emphasized in its statement.
BAZ echoed the FIC’s caution that continued reliance on physical currency increases money laundering risks and undermines national efforts to improve financial transparency and security. The Association pledged its full support for the Bank of Zambia’s Go Cashless campaign, which is aimed at fostering a cash-lite economy by encouraging businesses and consumers to adopt safer, faster, and more transparent digital payment solutions.
“This initiative is driven by the belief that cashless payments are faster, safer, and more convenient… while also reducing the costs associated with handling physical currency,” BAZ stated.
Despite challenges such as increasing cyber-enabled financial crimes targeting automated and digital platforms, the banking sector was credited with being the highest reporter of suspicious transaction reports (STRs), contributing 96% of all STRs in 2024. The report also highlighted a 12.74% national decline in suspicious transactions and a drop in suspected public sector corruption cases, from 55 in 2023 to 40 in 2024.
In light of these findings, BAZ reaffirmed its commitment to maintaining high compliance standards, cooperating with the FIC, financial regulators, and law enforcement agencies to support Zambia’s AML/CFTP framework.
As the country prepares for the 2027/2028 evaluation under the revised Financial Action Task Force (FATF) standards, BAZ will continue to engage actively in national risk assessment efforts and advocate for a reduced reliance on physical cash in the economy.
Zambia risks a deepening fiscal crisis unless it tackles an estimated USD 3.5 billion in illicit financial flows (IFFs) uncovered in 2024, the Centre for Trade Policy and Development (CTPD) has warned. According to the 2024 Financial Intelligence Centre (FIC) trend report, large-scale tax evasion, trade misinvoicing and illegal mining accounted for the vast majority of these outflows.
The scale of the problem is stark: at over ZMW 91 billion, the estimated IFFs represent nearly 42 percent of Zambia’s 2025 National Budget, and far outstripped the combined ZMW 73.9 billion allocation for critical sectors including Education, Health, Social Protection, Housing and Community Amenities. “These leakages deprive our country of resources desperately needed to fund free education, essential medicines and social services,” said the CTPD in its statement.
CTPD has urged the government to launch a suite of urgent reforms to stem the tide of illicit outflows and bolster domestic revenue mobilization:
Strengthen law enforcement agencies. Reform bodies such as the Anti-Corruption Commission and Drug Enforcement Commission to improve responsiveness and effectiveness in prosecuting financial crimes.
Enhance corporate transparency. Fast-track amendments to the Companies Act to require full disclosure of beneficial ownership and dismantle shell companies.
Bolster tax and customs intelligence. Focus resources on high-risk sectors—particularly mining and wholesale trade—to detect and deter misinvoicing schemes.
Implement a unified registry. Accelerate roll-out of the Integrated National Registration Information System (INRIS) to prevent identity-based fraud.
Ring-fence recovered funds. Ensure that assets and tax assessments recovered through FIC investigations—such as the recent ZMW 28.9 billion assessment—are dedicated to health, education and social protection.
“Without decisive action, Zambia will struggle to meet its development goals,” CTPD warned. The think tank called on policymakers to treat IFFs as a national emergency akin to any other leak in the public purse.
Founded as a non-profit, membership-based organization, CTPD advocates for pro-poor trade and investment reforms at national, regional and multilateral levels. It works to ensure that trade policy contributes to poverty eradication and sustainable development across Zambia.
In a move hailed by the Zambia National Farmers’ Union (ZNFU), Minister of Lands and Natural Resources Hon. Sylvia Masebo, MP, has deferred the controversial Lands and Deeds Registry (Amendment) Bill No. 13 of 2025, pending further stakeholder consultations. The postponement follows recommendations from the National Assembly’s Committee on Agriculture, Lands and Natural Resources, which convened hearings to gather views from farmers, land users, and other affected parties.
ZNFU President Jervis Zimba lauded the Minister’s leadership, emphasizing that the decision reflects the government’s commitment to transparent and participatory law‐making. “Meaningful stakeholder engagement is essential in tackling the complex challenges in our land administration system,” Zimba commented. He expressed gratitude to the Committee for its diligence in listening to concerns raised by the Union and other interest groups.
At issue are persistent cases of fraudulent land title issuance, which have eroded public confidence and undermined investments in agriculture. ZNFU has urged law enforcement agencies to prioritize criminal proceedings against those responsible, arguing that swift action will help restore trust in the titling system and reinforce the rule of law. “Decisive resolutions in these cases will protect the rights of genuine land users and safeguard the integrity of our registry,” Zimba added.
With the bill’s parliamentary process now on hold, ZNFU has pledged to engage actively in the forthcoming consultation phase led by the Ministry of Lands and Natural Resources. The Union intends to leverage its nationwide network to ensure that farmers’ voices are heard, contributing practical solutions for land governance reform. ZNFU’s participation will focus on crafting measures that balance secure land tenure with the needs of agricultural development and private investment.
Looking ahead, ZNFU remains optimistic that the expanded dialogue will yield a more robust legislative framework for land administration. By fostering collaboration between government, civil society, and the private sector, stakeholders aim to build a system that is accountable, transparent, and capable of supporting sustainable livelihoods across Zambia’s rural landscape.
The Non-Governmental Gender Organisations Coordinating Council (NGOCC) has expressed concern over the United States’ decision to cut development aid to Zambia, warning that the move could severely affect women and girls.
NGOCC Executive Director Anne Anamela said the aid reduction threatens progress in areas such as reproductive health, education and women’s economic empowerment.
Speaking during a symposium on global geopolitical shifts in Ndola, Ms Anamela noted that shifting donor strategies and emerging global power dynamics have created uncertainty for gender-focused programmes that rely heavily on foreign support.
Ms Anamela warned that cuts in aid could strain vital services like maternal healthcare and access to contraception and increase pressure on Zambia’s already fragile civil society.
Meanwhile, International Relations Expert Lazarous Kapambwe urged Zambia to adopt a more strategic diplomatic approach focused on national interests, particularly in trade and investment.
The symposium was organised by the Southern African Institute for Policy and Research (SAIPAR) in partnership with the Ministry of Foreign Affairs and International Cooperation was held under the theme “Zambia in a Shifting World Order: Strategic Responses to Global Geopolitical Reconfiguration.”
The Government of the Republic of Zambia was honoured to receive His Excellency, Advocate Duma Gideon Boko, President of the Republic of Botswana, on a State Visit to Zambia.
President Boko’s visit marks a significant milestone in the longstanding bilateral relations between our two countries. During his visit, His Excellency co-chaired the inaugural session of the Zambia–Botswana Bi-National Commission and served as Guest of Honour at the official opening of the 97th Zambia Agriculture and Commercial Show.
President Hakainde Hichilema underscored the strategic importance of Zambia’s relationship with Botswana, rooted in shared values, mutual respect, and a common vision for regional cooperation and sustainable development.
“We remain fully committed to leveraging this deep-rooted partnership to promote inclusive economic growth through enhanced trade and investment, infrastructure development, and people-to-people exchanges,” said President Hichilema.
Several Memoranda of Understanding were signed to strengthen cooperation in key sectors including agriculture, energy, transport, tourism, and disaster risk management.
The State Visit concluded with a formal farewell ceremony at Kenneth Kaunda International Airport.
Zambia’s annual inflation rate for July 2025 slowed to 13.0 percent, down from 14.1 percent recorded in June, according to the latest figures released by the Zambia Statistics Agency (ZamStats).
The agency attributed the decline primarily to a reduction in both food and non-food prices, signaling a possible easing of cost pressures on households and businesses.
“The slowdown in the annual inflation rate is largely due to price decreases in selected food items such as cereals, vegetables, and meats, as well as non-food items including household goods and fuel,” said ZamStats Interim Statistician-General, Ms. Leah Ngulube, during a monthly briefing in Lusaka.
Food Inflation Falls
Food inflation, which accounts for a significant portion of Zambia’s Consumer Price Index (CPI), dropped from 15.7 percent in June to 14.3 percent in July. Key drivers included falling prices of maize meal, fresh vegetables, fish, and cooking oil—staples for many Zambian households.
Ngulube noted that the improved food supply, aided by seasonal harvests and stabilized transport costs, contributed to the decline.
Non-Food Inflation Also Eases
The non-food inflation rate declined to 11.3 percent in July from 12.1 percent in June, with the largest contributions coming from price reductions in clothing and footwear, fuel, charcoal, and certain construction materials.
Economists say the deceleration may provide room for the Bank of Zambia to maintain or adjust monetary policy as it balances inflation control with economic growth.
Month-on-Month Inflation
Month-on-month inflation also slowed to 0.6 percent in July, compared to 1.1 percent in June, suggesting a cooling trend in price increases across the board.
Outlook
While the downward trend is welcomed by consumers, analysts caution that external risks such as global fuel price volatility, exchange rate fluctuations, and potential climate impacts on agriculture could still influence inflation in the coming months.
ZamStats will continue to monitor price movements as part of its mandate to provide timely and accurate economic data to inform policy and investment decisions.
Copperbelt Province Minister Elisha Matambo has urged residents of Chingola District not to live in fear, assuring them that the government and law enforcement agencies are committed to maintaining peace and order following recent riots that resulted in the destruction of public property.
Speaking after touring some of the affected areas damaged by small-scale miners in Chingola District, Mr. Matambo said the government and security agencies are working together to address the situation and prevent future incidents. He emphasized that the government is determined to protect the peace and freedom that citizens have long enjoyed and to maintain a conducive environment for investment.
Mr. Matambo expressed disappointment over the conduct of the rioters, noting that in addition to looting shops, they also set fire to a grader and compactor that were being used for road rehabilitation in the district.
Inspector General of Police Graphel Musamba stated that the police and other security forces are actively working to restore peace and order. He warned that those responsible for damage to property and infrastructure will face the full force of the law.
Zambia National Service Commander, Lieutenant General Maliti Solochi, expressed concern over the involvement of children in mining activities. He urged adults to ensure that children are redirected back to school, where education is free and accessible.
The Zambia Police Service confirmed the arrest of seventy-nine suspects in connection with violent riots that broke out on 30th July in Chingola District. The unrest followed the displacement of informal miners—commonly referred to as Jeraboos—from the Senseli Open Pit.
According to a police statement, the violence erupted when a group of disgruntled Jeraboos staged protests, targeting public infrastructure and private property in Chiwempala Township, Lulamba Township, and the Mwaiseni Trading Area.
“The suspects are currently in police custody and will be charged accordingly,” the statement read.
Police were swiftly deployed to restore order but faced fierce resistance from the rioters, who were reportedly joined by criminal elements seeking to exploit the chaos for looting and vandalism.
The incident turned deadly. Police confirmed that four civilians involved in the riot sustained injuries, and one fatality was recorded.
Authorities are urging members of the public to remain calm and refrain from unlawful acts. Investigations are ongoing to identify others who may have incited or participated in the violence.
“While the right to express grievances exists, it must never come at the cost of life, safety, and national peace,” said a senior police official.
The Ministry of Home Affairs is expected to issue further guidance as the situation evolves. Meanwhile, security has been heightened in the affected areas to prevent further unrest.
