Zanaco

Zambia is a lower-middle-income country in Southern Africa with a population of around 18 million people. The country’s economy is heavily dependent on copper exports, which account for around 70% of total export earnings. Agriculture is a significant sector of the economy, employing over 70% of the population. The main crops grown in Zambia include maize, cassava, beans, and tobacco. Zambia faces significant economic challenges, including high levels of debt, inflation, and currency depreciation.

The government has been implementing policies to stabilize the economy, including fiscal consolidation measures, and seeking debt relief from international partners. As of 2022, Zambia’s GDP is USD 23.6 bn, with a growth rate of 1.4%. The inflation rate is 21.4%, and the unemployment rate is 9.4%.

The banking sector in Zambia has continued to grow steadily and is regulated by the Bank of Zambia (BoZ). It comprises 18 commercial banks, with key players such as Zanaco, Standard Chartered, Barclays Bank, and First National Bank. The sector remains dominated by foreign-owned banks, largely subsidiaries of international banking groups.

As of 2024, Zambia’s banking sector recorded total assets of approximately USD 9.5 billion, with deposits of USD 7.3 billion. The non-performing loan (NPL) ratio remains low at 5.8%, indicating manageable credit risk. The capital adequacy ratio (CAR) stands at 22.2%, well above the minimum regulatory requirement, ensuring a stable and resilient banking environment. Despite its smaller size, Zambia’s banking sector continues to show strong growth potential and plays a key role in the country’s financial ecosystem.