Zambia National Commercial Bank Plc (“Zanaco”) provides banking and financial services in Zambia and is listed on the Zambian Stock Exchange. The bank was founded in 1969 and is headquartered in Lusaka, Zambia. Our stake of 45.6% in Zanaco was acquired from our shareholders at the time Arise was formed.
Country Overview

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%.

Banking Sector Overview

The banking sector in Zambia is relatively small but has grown in recent years. The sector is regulated by the Bank of Zambia, which oversees the operations of commercial banks, microfinance institutions, and other financial institutions. There are currently 18 commercial banks operating in Zambia, with some of the largest banks including Zanaco, Standard Chartered, Barclays Bank, and First National Bank. The banking sector in Zambia is dominated by foreign-owned banks, with the majority of banks being subsidiaries of international banks.

As of December 2021, the banking sector in Zambia had total assets of approximately USD 7.9bn, with total deposits of approximately USD 5.9bn. The non-performing loans (NPLs) ratio was 6.3%, which indicates that a relatively small proportion of loans were not being repaid on time. The capital adequacy ratio (CAR) was 21.5%, which is higher than the minimum regulatory requirement, indicating that banks in Zambia have reasonable capital to absorb potential losses. Overall, these statistics suggest that the banking sector in Zambia is relatively healthy and well-capitalised.