Bank of Zambia

PROGRESS REPORT ON THE IMPLEMENTATION OF THE FINANCIAL SECTOR DEVELOPMENT PLAN (FSDP)

PHASE II (January 2010 – June 2015)

PHASE II REPORT FOR THE PERIOD ENDING 31 MARCH 2015

Updated May 2015

LIST OF ACRONYMS AND ABBREVIATIONS

BAZ - BANKERS ASSOCIATION OF ZAMBIA

BoZ - BANK OF ZAMBIA

BIS - BANK FOR INTERNATIONAL SETTLEMENTS

BSA - BUILDING SOCIETIES ACT

CRB - CREDIT REFERENCE BUREAU

DBZ - DEVELOPMENT BANK OF ZAMBIA

DDACC - DIRECT DEBIT AND CREDIT CLEARING

DFI - DEVELOPMENT FINANCE INSTITUTION

DPS - DEPOSIT PROTECTION SCHEME

FSDP - FINANCIAL SECTOR DEVELOPMENT PLAN

GRZ - GOVERNMENT OF THE REPUBLIC OF ZAMBIA

HFIs - HOUSING FINANCE INSTITUTIONS

IMF - INTERNATIONAL MONETARY FUND

IVL - ITEM VALUE LIMITS

LuSE - LUSAKA STOCK EXCHANGE

MFIs - MICROFINANCE INSTITUTIONS

MoFNP - MINISTRY OF FINANCE & NATIONAL PLANNING

NBFIs - NON BANK FINANCIAL INSTITUTIONS

NSCB - NATIONAL SAVINGS AND CREDIT BANK

PIA - PENSIONS AND INSURANCE AUTHORITY

PSD - PRIVATE SECTOR DEVELOPMENT (PSD) PROGRAMME

SADC - SOUTHERN AFRICAN DEVELOPMENT COMMUNITY

SEC - SECURITIES AND EXCHANGE COMMISSION

TA - TECHNICAL ASSISTANCE

VAT - VALUE ADDED TAX

ZNBS - ZAMBIA NATIONAL BUILDING SOCIETY

ZRA - ZAMBIA REVENUE AUTHORITY

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TABLE OF CONTENTS

PAGE

1.0 INTRODUCTION ........................................................................................................ 1

2.0 APPROACH TO IMPLEMENTATION.................................................................... 1

3.0 ESTABLISHMENT OF INSTITUTIONAL FRAMEWORK FOR THE FSDP ... 2

4.0 PROGRESS ON THE ACTIVITIES OF THE FSDP ............................................... 5

5.0 FSDP PHASE II FINANCING ARRANGEMENT ................................................ 35

6.0 OUTLOOK.................................................................................................................. 37

APPENDICES

A. ORGANISATIONAL STRUCTURE OF THE FSDP B. MEMBERS OF THE FSDP STEERING COMMITTEE

(FSDPSC)

C. MEMBERS OF THE FSDP IMPLEMENTATION COMMITTEE (FSDPIC)

D. LIST OF FSDP WORKING GROUPS & RESPECTIVE

CHAIRPERSONS E. LIST OF WORKING GROUP MEMBERS

(& tables of institutional representation/ attendance at Working Group Meetings)

F. PRACTICE NOTE: ANTI MONEY LAUNDERING CUSTOMER

DUE DILIGENCE

G. FSDP IMPLEMENTATION MATRIX

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PROGRESS REPORT ON THE IMPLEMENTATION OF THE FINANCIAL SECTOR DEVELOPMENT PLAN PHASE II FOR THE PERIOD JANUARY 2010 TO MARCH 2015

1.0 INTRODUCTION

In recognition of the strategic importance of the development of the financial sector, in June

2004, the Government formulated the Financial Sector Development Plan (FSDP) for Zambia

whose first phase covered a five year period from 2004 – 2009.

In view of various outstanding issues from the initial FSDP and other challenges arising from the

2008/09 global financial crisis, a three-year extension of the FSDP into phase II was approved

by the Government of the Republic of Zambia in January 2010. FSDP phase II initially ran from

January 2010 to December 2012 and was extended further by two years to run until December

2014. The project is now expected to commence winding down from 1 January to 30th

June,

2015 following a six months extension which was approved by the Government to facilitate a

smooth closure.

The FSDP is both a vision statement and a comprehensive strategy by the Government to

address the current weaknesses in the Zambian financial system. It is aimed at guiding efforts to

realise the vision of a financial system that is ‘stable, sound and market-based and that would

support efficient resource mobilisation necessary for economic diversification and

sustainable growth.’

The FSDP-II therefore draws extensively on FSDP Phase I insights as well as on the

recommendations of the follow up Financial Sector Assessment Programme (FSAP) Update

conducted in 2008 by the IMF and World Bank. The second phase of the FSDP is focused on

three main pillars, namely:

(i) Enhancing market infrastructure;

(ii) Increasing competition; and

(iii) Increasing access to finance.

2.0 APPROACH TO IMPLEMENTATION

The FSDP Phase I involved developing policy priorities from the specific recommendations

under each key financial sub sector. Key priority areas included the following:

(a) Establishment of an institutional framework for the implementation of the FSDP;

(b) Review of the financial sector legislation which in the immediate term included:

i. Reviewing the Banking and Financial Services Act (BFSA);

ii. Drafting repeal and transitional legislation with regard to the three priority non-bank

financial institutions, namely, the Development Bank of Zambia (DBZ), Zambia

National Building Society (ZNBS) and National Savings and Credit Bank (NSCB);

iii. Drafting new legislation relating to the three critical areas of, Rural Finance, Housing

Finance and Development Finance; and

iv. Reviewing and harmonising the laws governing financial institutions, to avoid

inconsistencies with the Banking and Financial Services Act (BFSA).

(c) Resolution of weaknesses in the then insolvent state-owned financial institutions;

(d) Production of market knowledge on the supply and demand of financial services in Zambia

(mainly through the FinScope studies); and,

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(e) Introduction of a regulatory framework for the establishment of a credit reference bureau.

The second phase1, formally approved in January 2010 and scheduled to run until December

2014, is envisaged to deal with longer-term issues including the following:

i. Prioritising, sequencing and costing of the remaining FSDP recommendations for

Phase II;

ii. Harmonisation of wider financial sector legislation;

iii. Strengthening the autonomy and enhancing the capacities of the regulatory

authorities namely, the Bank of Zambia (BoZ), Pensions and Insurance Authority

(PIA) and Securities and Exchange Commission (SEC);

iv. Improving corporate governance among institutions;

v. Enhancing the payments systems;

vi. Awareness campaigns on financial services & costs.

vii. Bringing National Pensions Scheme Authority (NAPSA) under some independent

supervisory authority and implementing the investment allocation guidelines for

contractual savings providers;

viii. Developing appropriate professional information databases, recruitment and gender

policies at places of work; and,

ix. Capacity building for key stakeholders.

3.0 ESTABLISHMENT OF INSTITUTIONAL FRAMEWORK

FOR THE FSDP IMPLEMENTATION

In order to effectively and efficiently coordinate the implementation of the FSDP, an

implementation structure was developed in the first phase and comprises the FSDP Steering

Committee (FSDPSC), the FSDP Implementation Committee (FSDPIC), the FSDP Secretariat

and the FSDP Working Groups.

This institutional framework has been maintained from the first phase. However, the working

groups under this structure were divided among the three strategic pillars and streamlined

accordingly into six specialised areas. The organisational structure of the FSDP is illustrated

below and detailed in Appendix A.

1. FSDP II was approved by Government to run as an extension of FSDP I for three years effective January 2010.

The focus of the extended mandate was completion of issues outstanding from FSDP I and integration of policy

recommendations from the World Bank and IMF Financial Sector Assessment Programme (FSAP) report of

November, 2008. An additional two years extension of FSDP II was approved (to December 2014) by Government

following the recommendation of an independent review and assessment of the programme by Genesis Consulting

(a DFID appointed independent consultant).

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Figure1: FSDP Implementation Structure

3.1 FSDP Steering Committee

The FSDP Steering Committee (FSDPSC) oversees and provides overall direction and advice on

the implementation of the FSDP programme. The FSDPSC is domiciled at the Ministry of

Finance (MoF) and comprises key stakeholders who individually and collectively have an

integrated view of issues and direction of the financial sector. The FSDPSC is chaired by the

Secretary to the Treasury at the Ministry of Finance. Details of the members of this Committee

are provided in Appendix B.

3.2 FSDP Implementation Committee

The FSDP Steering Committee is supported by the FSDP Implementation Committee (FSDPIC)

which is domiciled at the Bank of Zambia. The FSDPIC is responsible for reviewing the

sequencing of activities for implementing the FSDP and monitoring performance targets in line

with the Implementation Matrix. To ensure effective implementation of the FSDP, the BoZ

chairs the FSDPIC and also provides the FSDP Secretariat function. Details of the members of

this Committee are provided in Appendix C.

3.3 FSDP Working Groups

Under FSDP Phase II, the FSDPIC is supported by six (6) Working Groups composed of subject

experts focusing on the technical aspects of implementing the recommendations of the FSDP.

Under FSDP Phase I, there were twelve FDSPWGs, comprised of an average of twelve members

each, which provided regular reports to the FSDP Implementation Committee (FSDPIC) through

the FSDP Secretariat. However, there were challenges relating to the composition as well as

commitment of some of the Working Groups.

To facilitate greater output focus and implementation agility, the working groups under the

second phase were categorised under the three pillars, and subsequently rationalized to the six

(6) Working Groups as indicated below:

FSDP

Steering Committee

FSDP

Implementation Committee

Working Groups

FSDP

Secretariat

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Table 1: FSDP Phase II Working Groups

PILLAR NEW WORKING GROUPS

UNDER PHASE II

PREVIOUS PHASE I WORKING

GROUPS RATIONALISED

PILLAR I:

MARKET

INFRASTRUCTURE

1. Legal Reforms and

Corporate Governance

Working Group

- Legal & Regulatory Infrastructure

- Corporate Governance

2. Payments Systems Working

Group

- Payment Systems

PILLAR II:

INCREASING

COMPETITION

3. Market Efficiency and

Contractual Savings Working

Group

- Macroeconomics

- Accounting and Auditing

- Taxation

- Contractual Savings

4. Financial Education

Working Group

- Financial Access

- Human Resources

PILLAR III:

ACCESS TO

FINANCE

5. Access to Finance Working

Group

- Banking

- Non-Bank Financial Institutions

6. Financial Markets Working

Group

- Financial Markets

Details of the FSDP Working Group representatives are provided in Appendices D and E.

3.4 FSDP Secretariat

The implementation process is coordinated by the FSDP Secretariat which is domiciled at the

Bank of Zambia. The FSDP Secretariat provides coordination and administrative services aimed

at synchronizing activities of the FSDP programme, the Committees with technical input from

the various working groups.

More specifically, the FSDP Secretariat is responsible for:

Receiving and consolidating Working Group reports;

Identifying and drawing up research and project proposals;

Preparing monthly progress reports for the FSDPIC;

Maintaining financial records and preparing financial reports on the utilisation of project

funds for the FSDP implementation; and

Monitoring progress and follow up issues from the FSDP Implementation matrix and

FSDP Activity Plans and Cost Estimates;

Carrying out secretariat functions and any ad hoc assignments given to it by the FSDPIC

and FSDPSC.

The terms of reference and functions of the FSDP Secretariat staff are set out in line with the

three-thematic pillars2 and the FSDP recommendations for action.

2 (i) Enhancing market infrastructure; (ii) increasing competition; and (iii) increasing access to finance.

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The Bank of Zambia Directorate for Non-Bank Financial Institutions spearheads the FSDP

Secretariat as its Chairperson. In addition, in order for the FSDP Secretariat to serve effectively

as a conduit for the flow of information and take responsibility for the day to day management

and coordination function, a five-person team consisting of the Project Coordinator and 4 Project

Officers have been appointed on a full-time basis for the two-year extended duration of the

FSDP Project. Officers have been attached from the Bank of Zambia (BoZ), the Ministry of

Justice (MoJ), the Pensions and Insurance Authority (PIA) as well as the Securities and

Exchange Commission (SEC).

4.0 PROGRESS ON THE ACTIVITIES OF THE FSDP

4.1 Recent Project Developments

4.1.1 Background

The FSDP Implementation and Steering Committees were constituted in the first quarter of 2010

by the Ministry of Finance and subsequently held their first meetings under FSDP II in the

second quarter of the year. The meetings considered and endorsed the structure and terms of

reference for the FSDP Secretariat and working groups (which were rationalised from twelve to

six). The Steering Committee, since then has continued to meet, mostly on a quarterly basis.

The endorsed FSDP II structure includes a total of six officers comprising of one Secretariat

Chairperson, one Project Coordinator and four Project Officers, as alluded to in the section

above. The said Officers have since been attached to the FSDP Secretariat by the Bank of

Zambia, the Pensions and Insurance Authority, the Securities and Exchange Commission, and

the Ministry of Justice as part of the public sector contribution to this national reform

programme. In addition, the working groups developed comprehensive activity plans and

budgets to facilitate the implementation of the activities from the second half of 2010 to end

2012. Implementations of activity plans from the initial FSDP phase II is expected to continue in

the extended period with additions were necessary of activities from emerging priority areas.

4.1.2 Funding for FSDP Phase II

The Finland FSDP Financial Support Agreement for €3.5 million (about K22.7 million) was

finalised and signed in mid-2011 by both the Government of the Republic of Zambia and the

Republic of Finland following the approval by the Attorney General. The Minister of Finance

and National Planning signed the agreement on behalf of the Zambian Government and the

Finnish Ambassador signed on behalf of the Republic of Finland on 26 May 2011. The release

of the 1st tranche of Finnish Funding amounting to €517,693 (about K3.2 million) was received

in July 2012 while the second tranche of the balance was received in January 2014. .

4.1.3 Government Monitoring and Evaluation Meetings

The FSDP is subject to a monthly Government Monitoring and Evaluation process spearheaded

by the Ministry of Finance. The monitoring and evaluation process monitors progress in the

overall performance of reforms in the economic sub sectors in the country including the FSDP

and is achieved through a monthly reporting framework.

The FSDP Secretariat participated in these meetings during 2010 and 2011 convened, then, by

the Honourable Minister of Finance on a monthly basis. A revised framework is currently being

developed for 2014 and beyond.

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4.1.4 Financial Education Awareness Programmes

Following the launch of the National Strategy on Financial Education in July, 2012, the FSDP

has spearheaded various financial education awareness campaigns aimed at empowering

Zambians with the knowledge, understanding, skills, motivation and confidence that will help

them secure positive financial outcomes for themselves and their families, especially those that

are disadvantaged by less education and/or poverty. Notable local and international financial

education efforts under the FSDP3 have included:

4.1.4.1 2013 Inaugural Financial Literacy Week

The FSDP Secretariat in conjunction with the Child and Youth Finance International (CYFI) and

Image Promotions in 2013 for the first time took part in the Global Money Week (or Financial

Literacy Week) from 15th

– 21st March 2013. Close to 5,000 participants in Zambia were among

others from 80 countries in the world that celebrated the Global Money Week (or the Financial

Literacy Week). The FSDP Secretariat organised a series of activities in Lusaka and on the

Copperbelt that included; the Kick-off event of the Financial Literacy Week; a financial sector

exhibition in Lusaka; Presentation of the National Strategy on Financial Education for Zambia in

the Copperbelt Province; and, financial sector representatives offering job shadows and giving

financial education talks to youths and school children at various forums, including in

classrooms. The financial literacy week is an annual event in which all financial sector players

are be expected to take part.

4.1.4.2 Runner’s up Global Money Week Award for Africa

As a follow on to commemoration of the Financial Literacy week, Zambia attended the 2nd

Global CYFI Summit and awards ceremony in Istanbul, Turkey from 7th

to 9th

May, 2013 at

which, Zambia received a runner‟s up Global Money Week award for emerging as one of the

five finalists out of 107 countries in the world (or the first among African countries) that

participated in the event. The Global Money Week award is given to CYFI member countries in

recognition of their efforts in promoting financial literacy among young people.

4.1.4.3 The 2nd

Annual Child and Youth Finance International (CYFI) regional meeting for

Africa - 19th

– 20th

September 2013

Zambia hosted the 2nd

annual Child and Youth Finance International (CYFI) regional meeting

for Africa in Livingstone from 19th

– 20th

September 2013 under the theme “reshaping the future

of finance”. The Regional Meeting for Africa was a multicultural and multi-stakeholder event

attended by approximately 200 participants from 20 countries in Africa (including Zambia),

Europe and the United States of America. The Minister of Finance Hon. Alexander Chikwanda

officially opened the meeting while the event was closed by the Minister of Education in a

speech read on his behalf by the Deputy Permanent Secretary in the Ministry of Education.

The experience of participants was heightened through various interactive sessions. Outcomes of

the meeting included designing a comprehensive strategy and a coordinated action plan for the

CYFI at a national and regional level, working out technologically based solutions to overcome

barriers and, increasing access to financial services and education for children and youth.

3 Following the Financial Education Coordination Unit (FECU) becoming operational in 2

nd quarter, 2014, financial

education efforts have been undertaken by the Unit. An update on recent financial education activities is covered in

Section 5.0 under FECU.

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The 2nd

CYFI meeting in Livingstone was built on the momentum created during the 2012

Regional Meeting in Abuja, Nigeria, and also towards attaining the Child and Youth Finance

Movement‟s global agenda to reach 100 Million Children and Youth in 100 countries with

Economic Citizenship Education and Access to Safe and Secure Financial Services by the year

2015.

4.1.5 Gender mainstreaming in the financial sector

In recognition of the important role played by women in national development, gender

mainstreaming has been adopted as one of the key focus areas under the Financial Sector

Development Plan. The initial phase of gender mainstreaming in the financial sector is being

spearheaded by the Bank of Zambia. As part of the overall gender mainstreaming policy, the

Bank has embarked on mainstreaming gender in the financial sector to promote financial

inclusion of women. The main initiatives so far have included:

a) Making the FSDP budget „gender-responsive‟ by including a budget line for gender

mainstreaming;

b) Conducting a Participatory Gender Audit of the Bank;

c) Conducting a research on women‟s access to financial services in Zambia;

d) Co-hosting the 3rd

African Women‟s Economic Summit (AWES) held from 24 -26 July,

2014 in Lusaka, Zambia; and

e) Implementing the Female and Male Operated Enterprises (FAMOS) Check tool, with three

banks having been piloted. This tool is intended to enable financial service providers

undertake a systematic assessment of the extent to which they target women entrepreneurs,

their needs and potentialities. The FAMOS Check tool also assists financial service

providers to develop appropriate strategies to extend their outreach to women entrepreneurs

as well as develop products to meet the needs of women entrepreneurs.

4.1.6 Establishment of the Financial Education Coordinating Unit (FECU)

With the National Strategy on Financial Education having been launched on 12 July 2012, the

Financial Education Coordination Unit (FECU), that is responsible for the implementation of the

Financial Education Strategy, was established in early 2013. The unit has an approved structure

of four members of staff comprising of a Coordinator, Project officer, Monitoring and evaluation

officer, and Communication officer. The FECU team is currently comprised of an acting Project

Co-ordinator (from the Ministry of Justice) a Project Officer (from the Pensions and Insurance

Authority) and an intern from the Bank of Zambia.

The German Savings Banks Foundation for International Cooperation (SBFIC) has also

seconded a long term Adviser to the FECU who will be resident in Zambia, until 2017.

4.1.7 Africa Carbon Credit Exchange

The Government is working with financial market players to develop a Carbon Market through

the Africa Carbon Credit Exchange (ACCE). The ACCE agenda was incorporated into the

Financial Sector Development Plan (FSDP) following a recommendation of a workshop by the

National Climate Change Programme under the Ministry of Finance in June 2012. The ACCE

was identified under the National Climate Exchange Strategy as a key mechanism through which

Zambians can access climate, carbon and innovative structured finance; and building resilience

in the economy to adverse climatic changes. The exchange will be the first of its kind in Africa

thereby positioning Zambia on the international stage as a global financial centre and locally

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enhance access to finance in rural areas. A follow up workshop for all FSDP working groups

was held in the second quarter of 2013 to consider inclusion of selected Carbon Market activities

into the Financial Sector Development Plan.

The terms of reference to set up the Carbon Market and governing regulations are currently

under consideration. It is expected that the establishment of the exchange will be among the

activities which will be adopted under the Financial Inclusion Strategy for Zambia after 2015.

4.1.8 Sovereign Credit Rating

In the first quarter of 2011, Zambia obtained two international sovereign ratings through

Standard & Poors (S& P) and Fitch ratings. Both firms have given Zambia a positive rating of

B+. This development is expected to allow the country access to relatively low cost international

finance. Following this rating, Zambia successfully issued a US$750m Eurobond for various

national developmental projects.

4.1.9 Risk-Based Know Your Customer (KYC) Guidelines

Following a review of the KYC guidelines, Bank of Zambia issued a Practice Note on Anti-

Money Laundering Customer Due Diligence. This followed discussions by various stakeholders

about the need to create an environment that is more permissive (or relaxed) for enhancing

financial inclusion, with among others Government expressing concerns over rural communities

being unable to access banking services and products due to stringent KYC requirements. The

Practice Note was subsequently issued to banks and non-bank financial institutions in October

2011. It was also publicised in the national daily newspapers in 2012 and later placed on the

BoZ Website for public information. The Practice Note is intended to guide financial institutions

to exercise flexibility on KYC requirements for opening and maintaining bank accounts and

accessing other forms of financial services.

4.1.10 Strategic Forum on the Role of Finance in Unleashing the Potential of Zambian

Businesses

The FSDP Secretariat participated in organising the Strategic Forum on the Role of Finance in

Unleashing the Potential of Zambian Businesses including the Small and Medium Sized

Enterprises (SMEs) held at the Taj Pamodzi Hotel in Lusaka on June 14, 2012. The Forum was

officiated by the Minister of Finance, and the main focus was to facilitate policy dialogue among

the Government, Bank of Zambia, the private sector and financial sector players on how to

expand financial services to Zambian businesses including SMEs. The World Bank and other

development partners were also in attendance to share international perspectives on this

important agenda.

Going forward, the FSDP Secretariat was tasked to follow up the implementation of the

recommendations through an appropriate monitoring and evaluation framework. Accordingly, it

was proposed that a follow up forum be held in 2014.

4.1.11 SME local content and Business Linkages forum

The FSDP Secretariat and the Bank of Zambia in collaboration with the World Bank organised a

Small and Medium Enterprises (SMEs) local content and business linkages forum which was

held at the TAJ Pamodzi hotel in Lusaka on 28th

November, 2013. The forum under the theme

„Encouraging local content and business linkages: Role of the financial sector‟ was a follow up

meeting to the „Strategic forum on the role of finance in unleashing the potential of Zambian

businesses‟ which was held in June, 2012. The forum was officiated by the Minister of Finance

and closed by the Minister of Commerce Trade and Industry.

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The meeting highlighted efforts being undertaken by Government and various development

partners to promote local content and business linkages among SMEs in Zambia; and the role of

the financial sector in facilitating the process. Among recommendations arising from the forum

for policy consideration were to:

Include the definition of SMEs in the country‟s SME policy;

Provide incentives to financial service providers that are involved in lending to

SMEs;

Establish a Credit Guarantee Scheme (that would also include insurance);

Encourage SMEs to form consortiums when dealing with large orders;

Enhance capacity building for SMEs; and,

Implement sensitisation (or financial education) campaigns for the SMEs.

The Minister of Commerce Trade and Industry in closing the event committed to adopt the

resolutions of the meeting once the final report was submitted to his Ministry.

4.1.12 Financial Literacy and Consumer Protection Diagnostic Review by the World Bank

The World Bank has agreed to offer technical support to Zambia following a diagnostic review

of consumer protection and financial literacy in Zambia during a mission undertaken in June,

2012. Recommendations from the study were adopted at a stakeholder dissemination workshop

held in December, 2012. A committee with representation from the Bank of Zambia,

Competition and Consumer Protection Commission, Pensions and Insurance Authority, Security

and Exchange Commission and the Financial Sector Development Plan Secretariat was also

formed to work with the World Bank to spearhead the implementation of the recommendations.

Since then, there has been a series of communication on the provision of both technical and

financial support to Zambia. The support is expected to run up to June, 2015 and any

outstanding work shall be carried forward under the envisaged Financial Inclusion Support

Framework (FISF) under World Bank support.

The support from the World Bank will focus on the following four key recommendations from

the diagnostic report:

(i) Introduce key provisions on consumer disclosure for retail financial products and

services, including requirement for Key Facts Statements, in the newly proposed draft

financial sector laws;

(ii) Introduce legal provisions allowing cooling-off period for credit and non-life insurance

products during which new customers are allowed to withdraw from already signed

contracts;

(iii)Assess various options for effective institutional setup for external dispute resolution

mechanism for financial sector;

(iv) Develop requirements for an internal dispute resolution process for all financial service

providers.

A Mission by the World Bank to commence the work was undertaken from 17th

to 21st

November, 2014. During this period, the team met various stakeholders in the financial sector

with respect to the four key areas for the support. A draft report on the findings is expected to be

ready in the 3rd

quarter of 2015.

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4.1.13 National Strategy on Financial Education

The National Strategy on Financial Education was officially launched by the Government in

Lusaka on 12 July 2012. The primary objective of the national strategy on financial education is

to: ‘Empower Zambians with the knowledge, understanding, skills, motivation and confidence

that will help them secure positive financial outcomes for themselves and their families,

especially those that are disadvantaged by less education and/or poverty’.

As part of the implementation of the National Strategy on Financial Education and also to

increase awareness of the subject matter among the public, members of the FSDP took part in a

five week interactive programme on Radio Phoenix in the second half of 2012 that tackled

several topics. Some of the topics were; what is the new National Strategy on Financial

Education all about? How and when was the strategy developed? What is the current situation in

terms of financial education in Zambia? and, What is the significance of having a national

strategy on financial education?

Going forward, the National strategy will be implemented through the Financial Education

Coordinating Unit (FECU) which is being supported by the three financial services regulators;

Bank of Zambia, Securities and Exchange Commission, and the Pensions and Insurance

Authority; and other stakeholders. In addition, the German Savings Banks Foundation for

International Cooperation (SBFIC) and the Bank of Zambia signed a memorandum of

Understanding that will facilitate the provision of technical and financial support for the

establishment and running of the FECU. The FECU was established in the 1st quarter of 2013

and is now operational.

4.1.14 Financial Sector Law Review

As part of the law review exercise, a four-day consultative workshop was held in Lusaka in May

2012. The main objective of the meetings was to solicit comments from the stakeholders on

financial sector laws that are currently being reviewed. The laws which were subjected for

review include the Securities (Amendment) Bill; Insurance Bill; Pensions Scheme Regulation

Bill; and the Banking and Financial Services Bill. Following the incorporation of comments

from the stakeholders‟ workshop, the draft Bills of the key financial sector laws were finalised

and legal consultants were engaged to undertake the harmonisation process of financial sector

laws towards the end of the first quarter of 2013.

After the conclusion of the harmonisation process and incorporation of comments, the principle

laws from all the regulatory institutions were submitted to the Ministry of Finance in May 2013

and have since been granted Cabinet approval and have been transmitted to the Ministry of

Justice.

In 2014, the FSDP Secretariat commenced reviewing of the second batch of laws which include

the following:

1) Leasing Law;

2) Building Societies Act;

3) National Payment Systems Act;

4) Bills of Exchange Act;

5) Cheques Act; and

6) Credit Reporting Law

7) Personal Property Security Interest Bill

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Review of the stated laws by a team of legal consultants commenced towards the end of the first

quarter of 2014 and a final report of the findings in all the laws under review was submitted to the

FSDP Secretariat by the consultants in November 2014 for consideration. Once cleared and

stakeholder input incorporated in the first quarter of 2015, the laws will be submitted to Ministry of

Finance in the second quarter of 2015.

4.1.15 Financial Sector Tax Review Study

The FSDP Secretariat constituted a study team in mid-2011 to review the impact of and

distortions in taxation on the financial sector. The Tax Study was aimed at recommending

enhancements to the tax regime that would minimise tax distortions, enhance tax neutrality and

ultimately stimulate increased usage of formal financial services. The study enlisted respondents

from banking, non-bank financial institutions and entities in the insurance, pensions and capital

markets and further included a regional comparison of other jurisdictions. The draft report was

reviewed by a stakeholder‟s consultative workshop on 18 July 2012. The updated report with

comments from the stakeholder‟s conference was submitted to the Ministry of Finance on 31

July 2012 for Government‟s National Budget and policy consideration.

Two recommendations of the Financial Sector Tax study report were adopted and incorporated

in the 2013 National Budget including; (i) abolishing the medical levy charged on interest

earned on savings or deposit accounts, treasury bills, government bonds or other similar

financial instruments and (ii) removal of withholding tax on interest earned by individuals from

savings or deposit accounts held with financial institutions such as banks or building societies.

Further deliberations on recommendations from the financial sector tax review study which were

not adopted for implementation by the Ministry of Finance have been undertaken and

resubmitted. It is hoped that the outstanding items will be considered by the budget office for

adoption in the Government‟s National Budget and policy.

4.1.16 Financial Identification System

Following the proposal by the Government of the Republic of Zambia to enhance the National

Registration Card (NRC), the Bank of Zambia (BoZ), through the FSDP Secretariat embarked

on an extensive consultative process aimed at improving financial identification in the financial

sector. During the process, and after consultations with the Ministry of Home Affairs, in 2013

and 2014, it was agreed that the FSDP stakeholders come up with possible features to be

embedded on the proposed NRC as a way to accelerate financial inclusion.

A technical expert from Germany was engaged with funding support from the Alliance for

Financial Inclusion (AFI) to develop a position paper outlining key components to be considered

for inclusion onto the NRC. Notable among the key features identified, include the following:

(i) Identification function: The card could act as a basis for personal identification but

could further include address verification as a necessary feature for the assessment of

Know Your Customer (KYC) requirements by financial institutions;

(ii) ATM card functions: It was proposed (as an option that could be embedded) that the

NRC include functionality for use at the ATM for money withdrawals, making deposits

or money transfers, account inquiries; and such related ATM services.

(iii)Payment and e-cash functions: This proposal if added to the functionality will enable

the NRC to be used as a substitute for cash. The card owner can deposit funds on the card

and pay with the card at accepting points of services.

12 | P a g e

The position paper has since been submitted to the Ministry of Home Affairs for Government

consideration.

4.1.17 Professional Information Database for the Financial Sector

The FSDP Secretariat has developed a framework for a professional information database (to be

housed at Bank of Zambia) for professional staff in the financial sector. The development of a

comprehensive professional information database system was recommended as one step towards

establishing the professional skills and gaps available in the financial sector, as well as

identifying a suitable sector approach in staff recruitment, training and development, as well as

retention activities.

In addressing this issue, all Banks and Non-Bank Financial Institutions (NBFIs) were requested

to upload information about their professional employees in order to populate the database on

the BoZ website. The non-confidential information obtained will be analysed and will be made

available (by 2015) to the public in aggregate form only.

4.1.18 Extension of FSDP II Project

In view of various outstanding issues from the second phase of the FSDP and other challenges

arising from the lengthy procurement procedures and delayed release of funding, the FSDP

Secretariat engaged cooperating partners, on a possible no-cost extension to the project for a

further 1 – 2 years. The FSDP was to come to an end in December 2012. Some development

partners committed to provide technical assistance in reviewing and assessing the impact and

progress of the project as a basis for developing a no-cost extension project document for

Government and donor approval.

Further, this process was expected to allow both the FSDP stakeholders and Government to

incorporate other priority reform areas that may be in line with the new Government‟s manifesto

and agenda (and may not have been in the initial project document of the FSDP II). The revised

roadmap and updated project document was outlined in a concept note prepared by the

Secretariat and endorsed by the FSDP Steering Committee in the third quarter of 2012. The

Government, through the Ministry of Finance, subsequently approved a two-year no-cost

extension to the FSDP Phase II project to run January 2013 to December 2014. This was also

intended to facilitate the conclusion of various on-going initiatives under FSDP Phase II.

4.1.18 Project Closure

The closure of the FSDP Phase II was deferred to June, 2015 following the approval of a six

months no cost extension from 1st January to 30

th June, 2015 which was approved by the FSDP

Steering Committee and the Government of Finland in the 4th

quarter of 2014. The extension is

intended to facilitate a smooth wind down of the project. The six months extension will

commence with the conclusion of outstanding activities from January to March, 2015, while the

winding up work will run from April to June 2015.

The winding down activities will include a self-assessment of the FSDP project in April/May

2015 with technical support from Finland and an audit which will be undertaken by a private or

public auditor.

4.1.19 Rebasing of the Zambian Kwacha

The Government of the Republic of Zambia approved the recommendation of the BOZ Board to

rebase the national currency. Consequently, the Bank of Zambia set 1st January 2013 as the

changeover date when the rebased currency would become legal tender.

13 | P a g e

The Zambian currency, the Kwacha was rebased by dividing the old currency by 1000 units, in

order to address costs associated with an accumulated loss in the value of the currency that

undermined its basic function as a store of value, medium of exchange and measure of value.

This loss of value was as a result of high inflation rates over a prolonged period of time,

particularly in the 1990‟s.

4.1.20 The Financial Sector Development Agenda beyond 2014

Following the no cost extension of the FSDP Phase II for an additional six months, the project

is now expected is now expected to end on 30th

June, 2015, However, there remains a need for

a comprehensive strategy to guide efforts towards realising the vision of a modern financial

system in Zambia. A Financial Sector Strategy for Zambia is envisioned to carry forward

outstanding activities from FSDP Phase II and incorporate specific interventions aimed at

strengthening the Financial Sector in Zambia. The implementation of the strategy is proposed to

be undertaken within similar but streamlined structures of the FSDP. Consultations are already

underway with cooperating partners including with the World Bank and Financial Sector

Deepening Zambia (FSDZ) on the way forward with a multi stakeholder approach envisaged. In

this regard, the Secretariat in December, 2014 hosted a consultant from the FSDZ and a World

Bank mission under the Financial Inclusion Support Framework to undertake preliminary work

for the Strategy. The proposed road map for the development of the new financial sector

Strategy is outlined in below:

4.2 Financial Sector Indicators

A number of financial sector indicators are provided below for information highlighting the

trend of various economic areas since the start of the FSDP programme. However, a more

detailed summary of progress made to-date under Phase I & II is highlighted in the tables that

follow at the end of section 4.

Planning & Stakeholder Input

(Q4 2014 – Q1 2015 )

Development of Draft Strategy

(Q1 – Q2 2015)

National Buy In and Launch

(Q2 – Q3 2015)

14 | P a g e

4.2.1 Table 2: Financial Sector Development Indicators – Selected Macro-Economic

Indicators

2005 2006 2007 2008 2009 2010 2011 2012 2013 2014

Private Credit/GDP -% 7.3 9.3 11.1 14.2 11.4 11.6 19.3 14.9 15.3 17.9

Stock Market Cap/GDP

Ratio (%)

28.7 40.0 48.0 56.7 38.8 48.0 63.5 52.8 52.4 22.26

Change in Liquid

Liabilities (M3) (%)

0.2 37.4 26.2 21.8 8.0 30.8 30.0 17.9 12.7 12.6

Lending Margin (%) 6.3 6.2 6.1 6.1 6.3 6.8 7.0 7.0 6.8 8.0

GDP Growth (% in constant 1994

Prices)

5.3 6.2 6.2 5.8 6.4 7.1 6.5 7.3 6.5 6.0

Annual Inflation (%) 18.3 9.0 8.9 16.6 9.9 7.9 7.2 7.3 7.1 7.9

Source: Bank of Zambia

4.2.2 Table 3: Lusaka Stock Exchange (LuSE) Indicators4

2005 2006 2007 2008 2009 2010 2011 2012 2013 2014

No. of Trades 2,519 3,662 6,199 8,384 6,619 7,610 7,117 5,681 5,829 5,373

Volume of Shares (million) 215 859 2,801 1,586 875 1,420 1,148 2,079 276 319

Market Capitalisation (US$ m) 2,456 3,188 4,827 4,106 5,273 6,302 9,409 9,399 10,484 10,271

Exchange Rate (K Per US$) 3,500 4,100 3,910 4,985 4,730 4,905 5,200 5,820 5.56 6.47

Total Turnover (US$ million) 15.5 25.0 72.4 167.8 43.8 196.0 149.1 68.3 38.07 1,102

Market P.E Ratio 12.7 12.1 20.6 13.7 18.6 12.7 17.6 13.70 15.25 15.51

Source:LuSE – Year End Statistics (www.luse.co.zm)

4.2.3 Table 4: Financial Sector Development Indicators-Fin Scope Zambia Survey Results

2005 2009

Overall Adult Financial Access (%) 33.7 37.3

Adults Financially Excluded (%) 66.3 62.7

Adults Formally Served (%) 22.4 23.2

Adults Informally Served (%) 11.3 14.1

Adults Banked (%) 14.6 13.9

Source: FinScope Zambia 2009 Survey Report

4.2.4 Table 5: Zambia Financial Inclusion Indices for the period 2010 - 2013

FinScope Zambia Survey Bank of Zambia Financial Inclusion Index

2005 2009 2010 2011 2012 2013

22.4% 23.2%5 Weighted

6 23.5% 30.1% 30.7% 39.6%

Non-weighted7 27.0% 33.4% 32.1% 39.9%

Source: Bank of Zambia

4 There are 22 listed companies and 6 stock broker members on the Lusaka Stock Exchange

(LuSE). 5 The measure of financial inclusion encompassing both formal and informal financial service providers for 2009 was at 37.3%.

6 With regard to the three indicators of financial access, the weight for financial access points is twice that of either the number of administrative

units with at least one access point or the proportion of population living in an administrative unit with at least one access point. 7 All the indicators of access and usage have equal weights.

15 | P a g e

4.2.5 Table 5: Financial Sector Development Indicators – Banking and NBFIs Sector

NUMBER OF BANKS AND NON-BANK FINANCIAL INSTITUTIONS (Under BoZ Supervision)

2005 2006 2007 2008 2009

2010

2011

2012

2013

2014

2015 Q2

Banking Sector

- Commercial banks 13 13 13 15 18

18

19

19

19

19

19

Non-Bank Financial Institutions Sector

- Leasing Companies

8

8 12 10 12

11

8

8

7

6

6

- Building Societies

3

3 3 3 3 3 3 4

4

4

4

- Bureau De Change

32

31 35 39 44

49

55

57

61

66

67

- Savings and Credit Banks

1

1 1 1 1

1

1

1

1

1

1

- Microfinance Institutions

4

6 8 21 25

25

32

35

33

34

37

- Development Finance Institutions

1

1 1 1 1

1

1

1

1

1

1

- Credit Reference Bureaux

0

1 1 1 1

1

1

1

1

1

1

- Money Transfer Services

8

10 26

27

28

28

28

28

28

- Financial Businesses

1

3

3

Total No. of Licensed Entities 62 64 74 101 131

136

148

154

156

163

167

Source: Bank of Zambia (BoZ)

4.2.6 Mobile Money Subscribers Versus Mobile Phone Subscribers

Name Number of Mobile

Phone Subscribers

Number of Mobile

Money Subscribers

Percentage of mobile

money subscribers to

total subscribers

MTN Mobile Money 5,386,099 1,070,549 19.9%

Airtel Mobile Commerce 3,721,439 4,185,470 112.5%

TOTAL 9,107,538 5,243,129 57.6%

Source: Bank of Zambia (BoZ) * As at 31stMarch 2015

8 Designation of Money Transfer Service institutions commenced in 2008.

The discrepancy between the number of mobile phone subscribers and number of mobile money users is due to the

fact that previously the system used to allow multiple mobile money wallets on a single simcard

16 | P a g e

4.2.7 Table 6: Financial Sector Development Indicators – No. of ATMs and Points of Sale

Total Number of Automated Teller Machines (ATMs) and Points of Sale (PoS) countrywide

2005

2006 2007 2008 2009 2010 2011 2012 2013 2014 Quarter 1

2015 Automated Teller Machines (ATMs)

N/A 133 186 295 431 486 537 643 744 896

924

No. of ATM Cards N/A

357,000

434,000

584,000

879,000

1,082,000

1,359,000

1.676,982

2,104,860

2,552,949

2,275,655

Points of Sale (PoS) Machines

N/A 342 420 703 889 1,119 1,784 2,025 2,578 3,266

3,899

No. of PoS Transactions N/A

256,000

403,000

468,000

543,000

805,000

1,210,000

1,677,179

1,983,018

2,937,453

948,236

Source: Bank of Zambia (BoZ)

Note: Comprehensive collection of above statistics commenced 2006.

4.2.8 Tables7 (a –c): Financial Sector Development Indicators - Pensions & Insurance Sector

Table 7(a)

Source: Pensions and Insurance Authority

Table 7(b)

Source: Pensions and Insurance Authority and CSO

9 These were licensed entities as at 1

st January 2015.

INSURANCE

2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 20159

Reinsurers 1 2 2 2 2 2 2 2 2 2 2

General Insurers 3 6 6 5 8 9 10 15 15 18 22

Long Term Insurers 1 5 4 4 5 5 6 8 8 9 11

Agents and Brokers (Including Insurance and Reinsurance Brokers, Composite, Loss Adjustors and Assessors, Claims Agents & Risk Surveyors) 93 99 111 139 151 114 278 336 336 356 284

Total No. of Licensed Entities 98 112 123 150 166 330 296

361 361 385 319

Gross Written Premiums (K Million): 2005 2006 2007 2008 2009

2010

2011

2012

2013

2014

General Insurance 296.88 342.45 446.55 550.34 691.78 838.54

860.20

1,012.17

1,073.07

1,215.81

Long Term Insurance 83.97 119.66 179.52 250.70 223.44 233.34

355.35

438.29

518.57

619.83

Gross Written Premiums (GWP) 380.85 462.11 626.07 801.04 915.22 1,071.88

1,215.00

1,450.46

1,591.64

1,835.64

GWP/ GDP (at current prices): % 1.19 %

1.20 %

1.36 %

1.45 %

1.42 % 1.38 % 1.30 %

1.31% 1.26%

1.12%

17 | P a g e

4.3 Performance against Monitoring & Evaluation (M & E) Milestones

A summary of progress made to-date under Phase I & II is highlighted in Table 8 below. The

assessments of progress against set milestones are colour-coded, with green representing an

activity that is on track for completion in the proposed timeframe; yellow representing an

activity that has made some progress, but which still requires a lot of work to achieve the target;

and red, when little or no action has been taken to date, and activities have been delayed.

Table 7(c)

Table 8 (on the next page) provides the status of milestones set out in FSDP II for reporting

during the year 2011, 201211

and 2013 with an update for 2014 as at the time of this report. At

end of the fourth (4th

) quarter of 2014, out of the 37 milestones under the FSDP set out for the

year, there was 1 red coded milestone (down from 2 as at end 2013), 18 yellow coded ones (up

from 16 as at end 2013), and 18 green milestones (down from 19 as at end 2013), respectively.

There were no red milestones at the end of the 4th

quarter of 2014. The status on the repeal of the

Money Lender‟s Act was changed to green following the decision by the Bank of Zambia not to

repeal the law but bring it under its regulatory ambit.

.

10

NAPSA members excluded but PSPF is included just up to 2009. (2007 – 2009 figures are estimates). 11It should be noted that the monthly MoF monitoring meeting held on January 11, 2011, resolved to remove all previous green

coded milestones from the reporting matrix and only report on those milestones intended to be implemented thereafter.

PENSIONS

2005 2006 2007 2008 2009 2010 2011 2012 2013 2014

Fund Managers 9 9 8 6 5

5

5

5

5

5

Fund Administrators 0 0 2 8 7

7

6

6

6

6

Custodians 0 0 0 0 0

0

0

0

0

0

Pension Schemes 207 221 235 240 241

224

228

234

235

238

Members10

223,813 234,644 196,930 202,137 197,315

91,320

96,549

100,672

102,611

106,755

Net Fund Values (in K’ Billion) 1.189 1.412 1.774 1.874 2.211

2.655

2.822

3.383

4.053

4.739

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FSDP PROGRESS REPORT AS AT DECEMBER 2014

Table 8 - Performance against FSDP Milestones 12

Item Serial

Number

Amount Expected Output

Revised

Time

Frame for

2014

Progress to Date Colour Code

Legal and regulatory

Reform

1. Finalisation of

Amendments to the BoZ

Act

2nd

Qtr The Bank of Zambia finalised the incorporation of

comments initially made by the Ministry of Finance

(MoF) and resubmitted the draft Bill to the MoF. Cabinet

approval has been granted and the bill has been

submitted to the Ministry of justice for further legislative

process.

GREEN

2. Finalisation of proposed

amendments to the

Banking and Financial

Services Act

2nd

Qtr

A layman’s draft Bill of proposed amendments was

submitted to the Ministry of Finance in May, 2013.

Cabinet approval was granted in the 2nd

quarter of 2014

and the bill has been submitted to the Ministry of justice

for further legislative process.

GREEN

3. Amendments to Building

Societies Act and Housing

Finance regulations

submitted to MoF.13

4th Qtr

The Building Societies Act (BSA) was initially amended

under FSDP Phase I in conjunction with the amendments

to the Banking and Financial Services Act (BFSA).

However, the BSA is currently being reviewed following

engagement of legal experts under the FSDP The BFSA

will be the principal piece of legislation for the financial

sector and will be supported by sector specific Acts, such

as the BSA. It is expected that the revision of the Bill will

be finalised during the 4th quarter of 2014 after which it

will be submitted to MoF for further consideration.

YELLOW

12The assessments are colour-coded, with green representing an activity that is on track for completion in the proposed timeframe; yellow representing an activity that has made some progress, but which still requires a lot of work to achieve the target; and red, when little or no action has been taken to date, and activities are much delayed. 13As part of the rationalization to harmonise related milestones, the finalization of housing finance and development finance regulations (indicated above) has been separated. Amendments to the Building Societies Act and the

development of housing finance regulations have been incorporated as one under section (9) as they are complimentary. A Statutory instrument is required to effect the regulations once approved by Govt.

19 | P a g e

Item Serial

Number

Amount Expected Output

Revised

Time

Frame for

2014

Progress to Date Colour Code

4. Securities Act 2nd

Qtr A layman’s draft Bill of proposed amendments was

submitted to the Ministry of Finance in May, 2013.

Cabinet approval was granted in the 2nd

quarter of 2014

and the bill has been submitted to the Ministry of justice

for further legislative process.

GREEN

5. Pension Scheme

Regulation Act (PSRA)

2nd

Qtr A layman’s draft Bill of proposed amendments was

submitted to the Ministry of Finance in May, 2013.

Cabinet approval was granted in the 2nd

quarter of 2014

and the bill has been submitted to the Ministry of justice

for further legislative process.

GREEN

6. Insurance Act 2nd

Qtr A layman’s draft Bill of proposed amendments was

submitted to the Ministry of Finance in May, 2013.

Cabinet approval in principle was granted in the 2nd

quarter of 2014 and the bill has been submitted to the

Ministry of justice for further legislative process.

GREEN

7. Money lenders Act 4th Qtr The Act was initially considered for repeal after a

framework for the delegated supervision of the smaller

tier 3 MFIs is in place. However, the course has changed

following a decision by the Bank of Zambia not to repeal

the Act but bring it under its regulatory ambit.

GREEN

8. Leasing Laws 4th Qtr

The FSDP Secretariat in collaboration with the BoZ, the

Leasing Association of Zambia, the Bankers Association

of Zambia and other relevant stakeholders in the

financial sector held a series of meetings to chart the

way forward on this matter. Leasing sector consultative

meetings took place in 2011 and 2012 and comments

were consolidated as a basis for further research.

YELLOW

20 | P a g e

Item Serial

Number

Amount Expected Output

Revised

Time

Frame for

2014

Progress to Date Colour Code

Going forward, it has been resolved that the relevant

provisions be incorporated in the BFSA, currently under

Government consideration, and where necessary

proposals for amendments to the Hire Purchase Act be

submitted.

In the interim, a separate leasing law is also being

developed to allow for legal provisions that are specific

to the sub sector. In addition, legal consultants have been

engaged under the FSDP to further develop the leasing

Law. It is expected that the proposed law will be finalised

during during the 4th quarter of 2014 after which it will

be submitted to the Ministry of Finance for further

consideration.

9. Final proposed

harmonisation of

financial sector

legislation under the 2nd

round of the Law

review:

Building Societies Act

and Housing Finance

Regulations

Bills of Exchange Bill

Leasing laws

Cheques Act

National Payment

Systems Act

Personal Property

4th Qtr

Lawyers to undertake review of the laws were engaged in

the 1st quarter of 2014. The harmonisation process of the

draft laws will be undertaken once the laws are

comprehensively reviewed. It is expected that this

exercise will conclude during the of the 4th quarter of

2014 after which the draft laws will be submitted to the

Ministry of Finance for onward transmission to the

Ministry of Justice by year end.

YELLOW

21 | P a g e

Item Serial

Number

Amount Expected Output

Revised

Time

Frame for

2014

Progress to Date Colour Code

Security Interest Bill

Payment Systems 10. A National switch to

ensure sharing of

infrastructure for retail

payment systems.

4th Qtr

The technical team met in the 1st quarter of 2014 to

finalise the Request For Proposal (RFP) in line with the

recommendations from the study tour .The tender was

floated in the various print media and closed on 17th

April 2014.

A team comprising officers from Bank of Zambia,

Zambia Electronic Clearing House Limited and

Commercial banks met to evaluate the bids in April

2014. However, no successful bidder emerged from the

evaluation and the tender was re advertised. The tender

was re-advertised June, 2014 and procurement process

is well advanced. A revised timeframe has been has been

drawn and it is anticipated that a contract will be

awarded by the third quarter of 2015.

The national switch is now expected to be implemented

and operational by the end of 2015.

YELLOW

11. Draft regulatory

framework for Payment

System operations and

oversight

4th Qtr The draft electronic money directives were finalised and

submitted for approval and publication in the

Government Gazette.

YELLOW

Accounting and

Auditing Standards

12. Harmonized accounting

and Companies Act

2nd

Qtr Following the amendment of the Accountants Act enacted

in September 2008, the Companies Act was partially

reviewed in 2011 but was scheduled for a comprehensive

review at the end of 2012 through to early 2013 which

would include the harmonisation with the Accountants’

Act. This work is underway at PACRA although delayed

into 2014.

YELLOW

22 | P a g e

Item Serial

Number

Amount Expected Output

Revised

Time

Frame for

2014

Progress to Date Colour Code

Banking 13. Draft framework for

branchless banking

4th Qtr The branchless banking regulations were drafted and

presented to stakeholders for review in 2012.The

comments from stakeholders have since been

incorporated with the draft regulations were submitted to

MoF in 2012.

GREEN

14. Review ‘Know Your

Customer’ (KYC)

Requirements

1stQtr The BoZ in consultation with the FSDP Access to

Finance Working Group developed a risk based (or

relaxed) KYC framework and Practice Note which also

received input from the Financial Intelligence Unit. The

Practice Note has since been issued to banks (in October

2011) and is intended to guide financial institutions to

exercise flexibility in applying the KYC regime.

GREEN

23 | P a g e

Item Serial

Number

Amount Expected Output

Revised

Time

Frame for

2014

Progress to Date Colour Code

Non-Bank Financial

Institutions

15. Develop and implement a

Unified Collateral

Registry

4thQtr

Following a request by the Bank of Zambia,

International Finance Corporation (IFC) accepted to

provide technical assistance to develop a framework for

the implementation of a unified collateral registry in

Zambia. An IFC team of experts visited Zambia in the 4th

Quarter 2012 to conduct a diagnostic review of existing

legislative framework and mapping of existing registries.

The IFC conducted its second visit with a legal expert to

provide technical advice on the legislative framework in

January 2013. On 11 March 2013, the IFC consultants

submitted a draft Security Interests and Collateral

Registry Bill for consideration and review by Zambian

stakeholders. Since then PACRA and BoZ have held

countrywide stakeholder meetings to discuss the draft bill

and receive public input before finalisation. The draft

bill has since been finalised with consideration of

stakeholder comments. The bill was submitted to the

Ministry of Commerce Trade and Industry in May, 2014

for further legislative process.

In addition, BoZ, PACRA and IFC entered into a

trilateral Memorandum of Understanding for technical

assistance from the IFC in the development of the

collateral registry. As part of the technical assistance,

the IFC facilitated a study visit to Ontorio Canada

during the fourth quarter of 2014. Further study visits

have been scheduled for 2015. In addition, IFC

conducted a mission visit to Zambia during the last

quarter of 2014 to sensitise stakeholders on the

collateral registry and obtain stakeholder input on the

text of the Security Interests and Collateral Registry Bill.

YELLOW

24 | P a g e

Item Serial

Number

Amount Expected Output

Revised

Time

Frame for

2014

Progress to Date Colour Code

Financial Education 16. Develop and commence

implementation of the

National Strategy on

Financial Education

1stQtr The strategy was developed and is intended to facilitate

the coordination of various activities at a national level

and includes the stock-take of existing financial

education programmes in Zambia, as well as identifies

possible financial education programmes and

opportunities. The aim of the strategy is to improve the

knowledge, understanding and financial education skills

of the Zambian population in order to increase their

participation in the financial sector and improve their

financial choices and livelihoods.

The Strategy was launched on 12 July 2012 and the

Financial Education Coordinating Unit (FECU) has

been established to oversee implementation of the

strategy. To date, a Project Co-ordinator (from the Bank

of Zambia) and a Project Officer (from the Pensions and

Insurance Authority) have been seconded to the FECU.

The German Savings Banks Foundation for International

Cooperation (SBFIC) has also seconded a long term

Adviser to the FECU who will be resident in Zambia

until 2017 to assist in the implementation of the strategy.

The development of the national financial education

strategy for Zambia followed a one and half year

consultative process, and stakeholder discussions of the

draft document that had been presented. .

GREEN

25 | P a g e

Item Serial

Number

Amount Expected Output

Revised

Time

Frame for

2014

Progress to Date Colour Code

Contractual Savings

17. Amend the Pension

Scheme Regulation Act

that exempts the National

Pension Scheme

Authority (NAPSA) from

supervision.

1stQtr The Pension Scheme Regulation Act has been reviewed

but is awaiting Government approval. The proposal for

independent supervision of NAPSA by PIA has been

accepted in principle by the technical review team.

In late 2011, the Secretary to the Treasury at MoF

appointed a committee to consider the modalities for

executing the proposal. The committee comprises

representatives from PIA, NAPSA, BoZ, MLSS and MoF

but is yet to commence its review meetings. However,

there are wider discussions for pension reforms at

national level under the Ministry of Labour, which

include revisions to the retirement age from 55 to 65 in

the public sector.

GREEN

Corporate Governance 18. Model Board Charter

1stQtr The Model Board charter was presented at a

stakeholders meeting with financial sector players on 25

and 26 October 2011 respectively. This will complement

the corporate governance guidelines for banks & NBFIs

already in place and issued under Phase I.

GREEN

19. Undertake Corporate

Governance Status Audit

1stQtr The FSDP Secretariat engaged the Institute of Directors

(IoD) in October 2012 as consultants to undertake this

activity. A Status Audit on Corporate Governance in the

financial sector has been undertaken and a report

submitted to the FSDP Secretariat in December 2012. As

the initial work focussed on a sample of institutions, it

was recommended by the regulators that the corporate

governance audit be extended to all licensed financial

sector entities. This was done during the second half of

2014 and the stakeholder review is envisaged in 2015

GREEN

26 | P a g e

Item Serial

Number

Amount Expected Output

Revised

Time

Frame for

2014

Progress to Date Colour Code

20. Develop Ethics and

Corporate Governance

Codes

1stQtr To support the model board charter, a corporate

governance code (to cover other financial sector players

as well) has also been developed by the Institute of

Directors (IoD) who were engaged as consultants to

undertake this activity in October 2012. A final report

was developed and submitted to the FSDP Secretariat in

December 2012.

As a follow on to this, it was resolved that corporate

governance training be extended to Board Chairpersons

of regulated institutions under BoZ, PIA and SEC which

was done in 2013 and 2014..

GREEN

21. Corporate Governance

Seminars targeted at

Executives in Financial

Institutions

1stQtr The 1st Consultative workshop on sector wide board

charter was held in Lusaka in March 2009. Follow up

corporate governance seminars for corporate leaders on

the Copperbelt and in Lusaka took place in November

and December 2012.

GREEN

27 | P a g e

Item Serial

Number

Amount Expected Output

Revised

Time

Frame for

2014

Progress to Date Colour Code

Crisis Management &

Market Exit

Mechanism

22. Draft Contingency

planning framework/

Draft Bank Resolution

mechanism

3rd Qtr Proposals of names for the BOZ Financial Stability

Committee and for the Joint Financial Stability

Committee have been made to conclude the

establishment of the institutional structures under the

framework. Further, the legislative arrangements

underpinning the framework from BoZ are also under

consideration by MoF.

So far the Financial Stability Unit has been established,

whilst the BOZ Financial Stability Committee and the

Joint Financial Stability Committee are yet to be put in

place.

Work on the Crisis Management Handbook is underway

and will be finalised by the Committee that was set up to

establish the framework which will be handed over to the

Financial Stability Unit by the end of 2014..

YELLOW

Financial

Identification System

23. Draft technical proposals

of the new financial

identification system

4th Qtr A technical expert from Germany (Dr. Nicola Jentzsch)

was engaged with funding support from the Alliance for

Financial Inclusion (AFI) to develop a position paper

outlining key components to be considered for inclusion

onto the NRC.

The position paper was finalised and submitted to the

Ministry of Home Affairs for consideration during the 3rd

quarter of 2014.

GREEN

28 | P a g e

Item Serial

Number

Amount Expected Output

Revised

Time

Frame for

2014

Progress to Date Colour Code

Increasing Market

Efficiency

24. Develop Curriculum for

training Actuaries

4thQtr A Post graduate Diploma in Actuarial Science has been

developed by the University of Zambia following award

of the contract to undertake the work in December, 2013.

A draft syllabus was submitted to the FSDP Secretariat

in the 2nd

quarter, 2014 and was subjected to a wide

stakeholder consultative process both local and

international. Following incorporation of stakeholder

comments the final syllabus was approved by the FSDP

in the 3rd

Quarter of 2014.

The pilot programme has now been rolled out at UNZA,

the first intake for the Post Graduate Diploma In

Actuarial Science commenced in November, 2014.

GREEN

Human Capital

25. HIV/AIDs Guidelines for

financial institutions

approved by FSDP

Steering Committee.

1stQtr HIV/AIDS Guidelines were developed under FSDP phase

I. However, the FSDP Implementation Committee

recommended that financial institutions be required to

follow the national HIV/AIDS policy as endorsed by the

National Aids Council and not to have separate policies.

In this regard, it was proposed and resolved that this

milestone be removed from the FSDP framework.

GREEN

29 | P a g e

Item Serial

Number

Amount Expected Output

Revised

Time

Frame for

2014

Progress to Date Colour Code

26. Develop a comprehensive

personal information data

base in financial sector

4th Qtr

The Bank of Zambia developed an ICT-based

framework14

for an information database (to be housed

at Bank of Zambia) for professional staff in the financial

sector 2011. Initially this will cover all banks and non-

bank financial institutions under Bank of Zambia’s

supervisory ambit and will later be extended to

institutions under the Pensions and Insurance Authority

and, the Securities and Exchange Commission.

Presentation of the system by BoZ to Human Resources

and ICT staff in banks and NBFIs was held in mid-2011.

A Circular was sent by the FSDP Secretariat to all Banks

and Non-Bank Financial Institutions (NBFIs) to request

information about their professional employees as at

2012 in order to populate the database on the BoZ

website. The aggregated information once analysed was

intended to be availed to the public by 2013 in a

consolidated and would be used to highlight gaps or

areas of limited technical skills and facilitate training

initiatives in such fields.

However, following technical challenges in rolling out

the database, the project was discontinued. A new

database was developed in 2014 and it is currently

undergoing internal testing. A pilot test run involving

selected institutions is expected to be undertaken early in

2015 before the system becomes fully operational.

YELLOW

14Proposed framework will allow authorized representatives in banks and NBFIs to log on to the BoZ website and upload the information. This platform is now expected to be ready by1st quarter 2015.

30 | P a g e

Item Serial

Number

Amount Expected Output

Revised

Time

Frame for

2014

Progress to Date Colour Code

27. Gender policies at places

of work in financial sector

developed

4th Qtr.

The Bank of Zambia issued a circular in mid-2011 to

Commercial Banks and NBFIS requesting them to submit

data on gender issues. The returns have been

consolidated but to ensure efficiency, the Gender

questionnaire and the professional information data

questionnaire (referred to above) are being

amalgamated into one.

YELLOW

Financial Market

Development

28. Finalise Strategy and

Implementation Plan for

SEC

1st

Qtr Strategy developed and finalised. To operationalize it

fully, SEC awaits approval of new securities bill by

Government and Parliamentary legislation.

GREEN*

29. The development of the

Money Market reference

rate to develop a link

between the domestic

foreign exchange market

and the money market to

assist with the pricing of

derivatives Instruments.

4th

Qtr A paper on the development of the money market

reference rate (i.e. The Lusaka Interbank Offer rate) has

been done.

Commercial banks have provided initial comments on the

draft document which have been consolidated. The

revised document has been shared with the market for

validation before the implementation is undertaken.

YELLOW

31 | P a g e

Item Serial

Number

Amount Expected Output

Revised

Time

Frame for

2014

Progress to Date Colour Code

Micro-finance

30. Strengthen micro-finance

regulations

4th Qtr The BoZ has proposed amendments to the Microfinance

Regulations. Following consultations with stakeholders

during the 2nd

quarter of 2014, one of the key

recommendations was that the Regulations be turned into

a stand-alone Act as opposed to them being issued under

the Banking and Financial Services Act, which piece of

legislation has provisions that mainly suit the banking

institutions. In this regard, the Draft Microfinance

Services Bill will be re-circulated to stakeholders and a

stakeholders’ consultative meeting was re-circulated to

stakeholders and a stakeholders’ consultative meeting

was held 30 September 2014. The bill has been updated

with the stakeholder comments and is being reviewed by

the Bank of Zambia Legal Services Department in

readiness for submission to the Ministry of Finance.

YELLOW

31. Draft Regulations for

consumer lending

4th Qtr BoZ has initiated studies for the development of

guidelines for both consumer lenders and borrowers

through re-categorisation, as indicated above.

YELLOW

Micro Insurance 32. Develop Micro-insurance

National Strategy

4th Qtr

Micro-Insurance Action Plan and draft strategy was

prepared under the PIA led Technical Advisory Group.

Official launch of the micro-insurance national strategy

was undertaken during the commemoration of the

Insurance week which was held in the 4th quarter of 2013

from 14th to 18

thof October, 2013.

GREEN

32 | P a g e

Item Serial

Number

Amount Expected Output

Revised

Time

Frame for

2014

Progress to Date Colour Code

Rural Finance 33. Develop Rural Finance

Policy/Strategic

Framework through the

Rural Finance Programme

– Policy to incorporate the

development of a

warehouse certificate

program.

2nd

Qtr

(completed

in 2013)

Following the Rural Finance Programme tender for a

consulting firm to develop the Rural Finance Policy,

Oxford Policy Management of UK were engaged to

develop the Rural Finance Policy and Strategy. Work

commenced late in the fourth quarter of 2011 after

signing the service contract and an Inception Report as

well as a Draft Report has been produced. As part of the

development process, a Stakeholders Rural Finance

Forum was held in May 2012.

The Rural Finance Policy and Strategy which was

finalised in form of a Cabinet memorandum and

submitted to the Government was approved in May 2013.

GREEN

34. Study to consider

agricultural supply chain

completed.

2nd

Qtr

(completed

in 2013)

Status on this milestone is tied to the one above.

GREEN

Development Finance

35. Development Finance

regulations submitted to

MoF.

4th Qtr A draft copy of the Development Finance Regulations

was developed. However, following extensive study and

review of the proposal to develop regulations, the BoZ

was of the view that the current legislative framework

was adequate for the prudential oversight of

Development Finance Institutions (DFIs). The

provisions of the Banking and Financial Services Act

(BFSA) and existing regulations apply to DFIs, and can

be amended to suit development finance business. In this

regard it was concluded that separate regulations for

Development Finance were not required.

GREEN

33 | P a g e

Item Serial

Number

Amount Expected Output

Revised

Time

Frame for

2014

Progress to Date Colour Code

36. Establish a Development

Fund

4th

Qtr In April 2011 Development Bank of Zambia (DBZ) and

Zambia Development Agency (ZDA) had signed the

MOU relating to the creation of the Zambia Enterprise

Development Fund (ZEDF), the core of which would be

an SME fund. The two parties intended to proceed with

the implementation of the MOU in earnest, with the

launch of the Fund initially scheduled for 2013 but later

rescheduled.

The ZED Fund has, however, mutated and DBZ has

decided not to go ahead with the establishment of the

ZED Fund following a review of their strategic plan..

The ZDA will channel funds in this respect to DBZ for

the establishment of a credit line to on-lend to Small and

Medium Enterprises (SMEs).

The Access to Finance Working Group has since

resolved to review the initial objective of setting up the

ZED Fund to assess if it could still achieve the

establishment of an Apex Fund.

YELLOW

34 | P a g e

Item Serial

Number

Amount Expected Output

Revised

Time

Frame for

2014

Progress to Date Colour Code

Study on reform of

financial sector tax

regime in Zambia

37. Consultants Identified and

Final Report Produced

1st

Qtr

(completed

in 2013)

In 2011, the FSDP Secretariat commissioned a study to

review the tax regime in the financial sector and its

implications on the sector’s development in Zambia. One

of the key objectives of this study was to examine the role

taxation and other regulatory measures can play in the

promotion of financial access, particularly in areas that

remain underserved by financial institutions. The Study

Team’s research included the review of previous

submissions to the MoF Annual Tax Review Committee.

In addition to the in-country research, the study team

carried out regional comparisons to appreciate the

design of financial sector taxation in related countries

and draw relevant lessons.

The report was presented to a wider stakeholder’s

workshop on 18 July 2012 for further scrutiny and input

before submitting the updated report for Government’s

National Budget and policy consideration on 31 July

2012. Two recommendations of the Financial Sector Tax

study report were adopted and incorporated in the 2013

National Budget including; Abolishing the medical levy

charged on interest earned on savings or deposit

accounts, treasury bills, government bonds or other

similar financial instruments and removal of Withholding

Tax on interest earned by individuals from savings or

deposit accounts held with financial institutions such as

banks or building societies.

GREEN

TOTAL

PERFORMANCE

YELLOW

Note: The initial five-year period for the FSDP Programme approved by Cabinet came to an end on June 30th

, 2009. Following this, and given the numerous outstanding issues and

new developments since 2004, Government on 14th January 2010 approved the extension of the FSDP programme, under phase II, to December 2012. In December 2012, the Government

approved a further extension of the FSDP phase II programme to run until December 2014.

35 | P a g e

5.0 FINANCIAL EDUCATION COORDINATION UNIT

(FECU)

5.1 Financial Literacy Week 2015

The 2015 Financial Literacy Week was held under the theme „Saving‟ with the slogan; ‘A

Better Life Through Saving, Every Ngwee Counts’. The 2015 Financial Literacy Week

built on the Saving campaigns conducted during the 2014 Financial Literacy Week, whose

theme was „A Better Life Through Saving‟.

The week was observed from 13 – 20 March 2015 with activities undertaken in all the 10

provinces of the country reaching over 26,000 people directly. With a robust media

programme in place during the campaign, which included radio and television programmes,

an estimated 5 million people were reached.

Other activities that were lined up for the week included the following:

a. A launch on the Zambia National Broadcasting Corporation (ZNBC) and Muvi

television by the Honourable Minister of Finance, Mr Alexander Chikwanda;

b. A Kick-Off event on 13 March 2015 at the Olympic Youth Development Centre

(OYDC) in Lusaka; and,

c. Provincial activities undertaken through the Provincial Permanent Secretaries and their

staff which included: mini-launches held mainly in the Provincial capitals; exhibitions

by financial institutions; financial education talks, visits to schools and market events.

5.2 Coin-A-Thon Competition

During the first quarter of 2015 the Financial Education Coordination Unit (FECU) organised

a savings competition for young people called Coin-A-Thon. The objective of the competition

was to promote the culture of saving among young people and to bring back coins into

circulation.

The competition had 17 schools that were given piggy banks in which they collected coins

over a period of 6 weeks. The climax of the competition was at the Kick-off event of the

Financial Literacy Week where the coins collected by the participating schools were counted.

The winners of the competition were Mary Queen of Peace Secondary School, while Matero

Girls Secondary School and Matero Boys Secondary School got second and third place,

respectively. The total value of coins collected was close to K8,000.00.

5.3 Collaboration with Mobile Phone Network Operators

The FECU engaged the three Mobile Network Operators (Airtel, MTN and Zamtel) with a

view of having them in disseminating financial education messages via mobile phones on the

sms platform. As part of the Financial Literacy Week, Zamtel and MTN sent out text

messages on various financial sector concepts. The combined market share for MTN and

Zamtel is 62% (10 million subscribers) implying that approximately 6 million subscribers

were reached.

5.4 Development of the Financial Education Website

Through the support from the German Savings Banks Foundation for International

Cooperation (SBFIC) a financial education website was developed and launched in February

2015. It is envisaged that the delivery of financial education through the website will

encourage more people to have access to financial literacy.

36 | P a g e

5.5 Training of Trainers in the Micro Business Simulation

During the first quarter of 2015, the FECU continued its collaboration with SBFIC and other

stakeholders by training trainers in the “Micro-Business-Simulation” through a Training of

Trainers (ToT) programmes. Since May 2013 a total number of 60 trainers have been trained

and these have conducted trainings for more than 3,250 MSMEs. It is expected that these

trainers shall train an additional 1,000 MSMEs in the next three months. The focus for the

current phase is to reach out to other provinces outside Lusaka.

5. 6 Financial Education for Children and Youth

The Financial Education Coordination Unit (FECU) participated at a youth outreach event

which was held on 12 March 2015 by the Deeper Life Church. The FECU made a

presentation on the National Strategy on Financial Education and on the importance of saving

in relation to the opportunities available in the market.

The event was attended by more than 400 young people drawn from Lusaka some townships.

5.7 Financial Education for Adults

The Financial Education Coordination Unit (FECU) in collaboration with the Zambia Police

Gender Office conducted two full-day training sessions for the Zambia Police Service, one for

50 senior officers and the other for 50 junior officers. The training was delivered by a

consultant from Africa Trust Academy and covered topics such as setting financial goals,

budgeting saving and fundamentals of entrepreneurship.

The objective of the training was to improve the financial capability of Police officers to

enable them manage their income efficiently and prepare for retirement.

5.8 Cross-cutting Financial Education Programmes

The FECU in collaboration with the Savings Banks Foundation for International Cooperation

(SBFIC) produced a ten-series soap called „Get to Know Your Numbers.‟ The soap is based

on the Business Simulation Game and aims at teaching Micro, Small and Medium

Entrepreneurs the basic skills required for one to successfully run a business. The series were

broadcast on national television during the month of March 2015.

A periodical on financial education for Zambia was published during the first quarter. The

periodical contains articles on financial education initiatives being undertaken by various

stakeholders.

6.0 FSDP PHASE II FINANCING ARRANGEMENT

The financing arrangement and budget summary for the second phase of the FSDP will

consist of several participants, with the main funding expected to be provided by the

Government of the Republic of Zambia, Bank of Zambia and international cooperating

partners, led by the Government of Finland. Support arising from technical assistance has

however not been incorporated at this stage, but will be highlighted as and when provided. A

breakdown of the financing is provided below:

FINANCIER K Million US $

Government of Zambia (K3 Million) 3.00 576,923.08

Bank of Zambia –FSDP Secretariat (K6 Million) 6.00 1,153,846.15

Bank of Zambia –FSDP Allowances (K690,800) 0.69 132,846.15

Cooperating Partners (K28.3 Million) 28.32 5,446,384.62

Grand Total 38.01 7,310,000.00

37 | P a g e

7.0 OUTLOOK

FSDP II proposes three project components, namely, (i) market infrastructure, (ii) increasing

competition, and (iii) access to finance. FSDP II has kept the participatory approach used

under the FSDP I, with working committees grouped into the three identified strategic pillars.

The focus of the FSDP programme going forward, among others, will include implementation

of the following project activities:

Consumer awareness/ literacy on banking and other financial services;

The national strategy on financial education;

Facilitation of the adoption of good corporate governance principles to encourage

investments in institutions that observe good corporate best practices;

Finalization of the proposed modernization and harmonization of financial sector

legislation under the law review exercise (including finalisation of the law for credit

reference services);

Implementation of the national switch;

Strengthening payment systems and oversight;

Expanding access to savings and credit; and,

Further developing the securities market.

The FSDP Secretariat will continue to prepare progress reports on a quarterly basis which will

be made available to the public through the BoZ website, www.boz.zm.

38 | P a g e

8.0. FINANCIAL INCLUSION - DISTRIBUTION OF COMMERCIAL BANKS AND NATIONAL SAVINGS AND CREDIT BANK (NSCB) BRANCHES IN ZAMBIA Colour Key

Districts where there is no branch of either a commercial bank or NSCB (currently 19)

Name

Number of

Bank

Branches

Number of

NSCB

Branches

Zanaco

Express/

Agents

Total

Branches

1. Batoka 0 0 1 1

2. Chadiza 1 0 0 1

3. Chama 0 1 1 2

4. Chavuma** 0 1 2 3

5. Chembe** 0 0 1 1

6. Chibombo 3 0 0 3

7. Chiengi 0 0 1 1

8. Chikankata 0 0 0 0

9. Chilanga 1 0 1 2

10. Chililabombwe 6 0 1 7

11. Chilubi** 0 1 1 2

12. Chingola 11 0 1 11

13. Chinsali 3 0 1 4

14. Chipata 10 1 3 14

15. Chipili 0 0 0 0

16. Chirundu 4 0 0 4

17. Chisamba** 0 0 1 1

18. Chitambo 0 0 0 0

19. Choma 7 0 1 8

20. Chongwe 1 1 3 5

21. Gwembe** 0 0 1 1

22. Ikelenge 0 0 1 1

23. Isoka 1 0 1 2

24. ItezhiTezhi 1 0 0 1

25. Kabompo 1 0 0 1

26. Kabwe 10 0 4 14

27. Kafue 3 0 0 3

28. Kalabo** 0 1 2 3

29. Kalomo 2 0 2 4

30. Kalulushi 2 0 2 4

31. Kaoma 1 0 3 4

32. KapiriMposhi 2 0 1 3

33. Kaputa 0 1 1 2

34. Kasama 6 1 1 8

35. Kasempa 1 1 1 3

36. Katete 1 0 2 3

37. Kawambwa 1 0 1 2

38. Kazungula 1 0 1 2

39. Kitwe 25 2 4 31

39 | P a g e

40. Limulunga** 0 0 1 1

41. Livingstone 16 1 0 17

42. Luampa 0 0 0 0

43. Luangwa 1 0 1 2

44. Luano 0 0 0 0

45. Luanshya 6 1 2 9

46. Lufwanyama** 0 1 1 2

47. Lukulu 0 1 1 2

48. Lundazi 2 0 2 4

49. Lunga 0 0 0 0

50. Lusaka 135 5 7 147

51. Luwingu 0 1 0 1

52. Maamba 0 0 0 0

53. Mambwe 2 0 2 4

54. Mansa 4 1 0 5

55. Mafinga 0 0 1 1

56. Manyinga** 0 0 2 2

57. Masaiti 0 0 0 0

58. Mazabuka 7 0 0 7

59. Mbala 3 0 1 4

60. Milenge** 0 0 1 1

61. Mitete 0 0 0 0

62. Mkushi 4 0 0 4

63. Mongu 6 1 0 7

64. Monze 3 0 0 3

65. Mpika 3 0 1 4

66. Mpongwe** 0 1 1 2

67. Mporokoso 0 1 0 1

68. Mpulungu 2 0 1 3

69. Mufulira 5 0 1 6

70. Mufumbwe 1 0 1 2

71. Mulobezi 0 0 0 0

72. Mumbwa 1 1 3 5

73. Mungwi** 0 0 1 1

74. Mwandi** 0 0 1 1

75. Mwansabombwe 0 0 0 0

76. Mwense** 1 0 2 3

77. Mwinilunga 1 0 3 4

78. Nakonde 4 0 0 4

79. Nalolo 0 0 0 0

80. Namwala 1 0 0 1

81. Nchelenge 1 1 2 4

82. Ndola 32 2 3 37

83. Ngabwe 0 0 0 0

84. Nkeyema** 0 0 1 1

85. Nsama 0 0 0 0

86. Nyimba** 1 0 2 3

87. Pemba** 0 0 2 2

40 | P a g e

NB: Following the new Governments decentralisation policy after the September 2011 General elections,

the Government has created new districts as highlighted above.

** Districts reported as initially unbanked in the year 2010.

15

The partnership between Zambia National Commercial Bank Plc (Zanaco) and Zampost has fallen through, and Zanaco has since partnered

with some SMEs as their agents, currently standing at 107. This led to the reduction in the number of agents from 130 reported in the 2nd

quarter, of 2013.

88. Petauke 2 1 2 5

89. Rufunsa 0 0 0 0

90. Samfya 1 0 1 2

91. Senanga 1 0 2 3

92. Serenje 1 0 2 3

93. Sesheke 2 0 1 3

94. Shangombo** 0 0 2 2

95. Shibuyunji** 0 0 1 1

96. Shiwang‟andu 0 0 0 0

97. Siavonga 1 0 0 1

98. Sikongo 0 0 0 0

99. Sinazongwe 1 0 0 1

100. Sinda** 0 0 1 1

101. Sioma 0 0 0 0

102. Solwezi 13 1 0 14

103. Vubwi 0 0 0 0

104. Zambezi 0 1 1 2

105. Zimba 1 0 0 1

TOTAL 369 32 10815

509

41 | P a g e

8.1 COMMERCIAL BANK BRANCH DISTRIBUTION BY PROVINCE AS AT 31st DECEMBER 2014

Source: Bank of Zambia

ABBREVIATIONS

AB - AB Bank Zambia Ltd

Access - Access Bank (Z) Ltd

BBZ - Barclays Bank Zambia Plc

BancABC - African Banking Corporation (Z) Ltd.

BOC - Bank of China (Z) Ltd.

Cavmont - Cavmont Bank Ltd

Citi - Citi Bank (Z) Ltd

Eco - Ecobank Zambia Ltd.

FBZ - Finance Bank Zambia Ltd

FAB - First Alliance Bank (Z) Ltd.

FNB - First National Bank (Z) Ltd.

Indo - Indo-Zambia Bank Ltd

Intermarket - Intermarket Banking Co. (Z) Ltd.

ICB - International Commercial Bank (Z) Ltd.

Investrust - Investrust Bank Plc

Stanbic - Stanbic Bank (Z) td.

Stanchart - Standard Chartered Bank (Z) Plc

UBA - United Bank for Africa (Z) Ltd.

Zanaco - Zambia National Commercial Bank Plc

42 | P a g e

8.2 NON BANK FINANCIAL INSTITUTIONS BRANCH DISTRIBUTION BY PROVINCE AS AT 31st MARCH 2015

Source: Bank of Zambia

NORTHERN

Building societies (1)

Microfinance institutions (2)

Savings & credit

institutions (4)

LUAPULA

Microfinance institutions (2)

Savings & credit institutions (3)

SOUTHERN

Building societies (3)

Microfinance institutions (7)

Bureaux de change (11)

Savings & credit institutions (1)

LUSAKA

Building societies (4)

Microfinance institutions (44)

Bureaux de change (79)

Savings & credit institutions (6)

Leasing companies (6)

Development finance institutions (1)

Credit reference bureau (1)

CENTRAL

Building societies (2)

Microfinance institutions (6)

Savings & credit institutions (1)

EASTERN

Building societies (1)

Microfinance institutions (8)

Bureaux de change (4)

MUCHINGA

Building societies (1)

Microfinance institutions (2)

Bureaux de change (7)

COPPERBELT

Building societies (8)

Microfinance institutions (24)

Bureaux de change (22)

Savings & credit institutions (5)

Leasing companies (3) NORTH WESTERN

Building societies (2)

Microfinance institutions (3)

Bureaux de change (1)

Savings & credit institutions (4)

WESTERN

Building societies (1)

Microfinance institutions (4)

Savings & credit institutions (4)

10 62

5

7

10

16

9

141

22

9

43 | P a g e

APPENDICES

44 | P a g e

APPENDIX A

ORGANISATIONAL STRUCTURE OF THE FSDP

FRAMEWORK

Financial Sector Development Plan Steering Committee (Domiciled at the MoF)

* Bullet points are examples of some of the activities to be undertaken by the Working Groups

Payments Systems Working Group

Payments Systems regulatory framework

Accounting and Auditing

Buoyant mobile banking

Financial Education Working Group

Financial Literacy

National Financial Literacy Strategy

Enhancement of Market Knowledge

Access to Finance Working Group

Expanding Access to savings and credit

Strengthen Micro-finance and insurance Industry

Establish institutional framework for rural finance

Financial Markets Working Group

Enhance buoyant Secondary Market in money and Capital markets

Expand access to development and housing finance

Leasing

Legal and Regulatory Reform Working Group

Legal reforms

Crisis Management

Financial Intelligence Unit

Market Efficiency and Contractual Savings Working Group

Increasing MarketEfficiency

Human Capital Development

State owned Financial Institutions

Taxation

Market Infrastructure Pillar

FinScope survey

Increasing Competition Pillar Increasing Access to Finance Pillar

FSDP Implementation Committee & FSDP Secretariat

(Domiciled at the BoZ)

Working Groups*

45 | P a g e

APPENDIX B

Members of the FSDP Steering Committee (FSDPSC)

ORGANISATION SECTOR

REPRESENTED

POSITION AND NAME

OF MEMBER

1. Ministry of Finance (MoF)

Government/ Chair Secretary to the Treasury

(Mr Fredson Yamba)

2. Bank of Zambia Central Bank/Vice-Chair Deputy Governor - Operations

(Dr Bwalya K. E. Ng‟andu)

3. Ministry of Commerce Trade

& Industry

Government/ Commerce Director - Planning

(Mr Mateyo Kaluba)

4. Bankers Association of

Zambia (BAZ)

Banking Sector BAZ Chairperson

(Mr Shankardas Gupta)

5. Pensions and Insurance

Authority (PIA)

Insurance and Pension

Sector

Registrar

(Mr Martin Libinga)

6 Securities and Exchange

Commission (SEC)

Financial Markets Secretary and Chief Executive

(Mr Philip Chitalu )

7. Zambia Revenue Authority

(ZRA)

Taxation Commissioner General

(Mr Berlin Msiska)

8.

The Zambia Business Forum

(ZBF)

Private sector business

associations

Chief Executive Officer

(Ms Prisca M. Chikwashi)

9. The Zambia Business Forum

Private sector business

associations

Zambia Association of

Manufacturers President

(Dr Bright Chunga)

10. Law Association of Zambia

(LAZ)

Legal and Regulatory

sector

LAZ President

(Mr George Chisanga)

11. Zambia Institute of Chartered

Accountants (ZICA)

Accounting and Audit

sector

Secretary and CEO

(Mr Hapenga Kabeta)

12. Association of Microfinance

Institutions in Zambia

(AMIZ)

Rural and Microfinance

sector

AMIZ President

(Mr Peter Mbewe)

NB: As at June 2014. The Embassy of Finland also sit as members in an observer capacity on this Committee.

46 | P a g e

APPENDIX C

Members of the FSDP Implementation Committee (FSDPIC)

ORGANISATION NAME

Bank of Zambia (Chair)

Dr Bwalya K. E. Ng‟andu

(Deputy Governor – Operations)

Zambia National Farmers Union

Ms Ellah Alice Mzyeche Chembe

(Deputy Executive Director)

Zambia Revenue Authority

Mr Dingani Banda

(Acting Commissioner – Customs Services)

Ministry of Justice

Mrs Lydia Matapo

(Counsel – International Law Agreements)

Pensions and Insurance Authority

Mr Muyoya Chibiya

(Director – Corporate Services )

Zambia Consumer Association

Mr Muyunda Ililonga

(Executive Secretary)

Securities and Exchange

Commission

Ms Mutumboi Mundia

(Director - Market Supervision & Development)

Zambia Institute of Directors (IOD)

Mrs Sabina Luputa

( Executive Director – IOD)

Private Sector Development Reform

Programme

Mrs Kayula Siame

(Programme Coordinator)

FSDP Secretariat Mr Visscher Bbuku

(Director – Non-Bank Financial Institutions Supervision)

Bank of Zambia

Dr Francis Chipimo

(Director - Economics)

Bank of Zambia

Dr Emmanuel Mulenga Pamu

(Director – Financial Markets).

Bank of Zambia

Mr Lazarous Kamanga

(Acting Director – Banking, Currency & Payment

Systems).

Bank of Zambia

Ms Gladys Chongo Mposha

(Director – Bank Supervision).

Bank of Zambia

Dr Leonard Kalinde

(Director – Legal Services)

NB: As at -2013

47 | P a g e

FSDP II Secretariat Structure

FSDP SECRETARIAT CHAIRMAN

(BoZ Director - NBFIS)

(Reporting to the FSDP Implementation

& Steering Committees)

PROJECT COORDINATOR

(BoZ)

(Reporting to the FSDP Secretariat Chairperson & Responsible for Budget,

Procurement and Administration)

PROJECT

OFFICER

(MoJ)

(Responsible for Pillar I - Legal, Corporate Governance and Payments Systems

Issues)

PROJECT

OFFICER

(PIA/ SEC)

(Responsible for Pillar II: Macroeconomics, Accounting,

Contractual Savings and H.R Issues)

PROJECT

OFFICER

(BOZ)

(Responsible for Pillar III: Banking, Non-Banking and Financial & Capital Market

Issues as well as Financial Education)

48 | P a g e

FSDP Secretariat Members

NAME

POSITION

Mr. Visscher Bbuku

Chairperson – FSDP Secretariat

(Also BoZ Director – Non-Bank Financial Institutions

Supervision)

FSDP Project Team

Mr Musapenda J. Phiri

(Attached from the Bank of Zambia)

Project Coordinator – FSDP Secretariat

Mr Marvin Ilunga

(Attached from the Bank of Zambia)

Project Officer 1 – FSDP Secretariat

Mrs Kapulwa Kaunda Kafumukache

(Attached from the Ministry of Justice)

Project Officer 2 – FSDP Secretariat

Mrs Queen Shachile

(Attached from the Securities & Exchange

Commission)

Project Officer 3 – FSDP Secretariat

Ms Mainza Masole

(Attached from the Pensions & Insurance

Authority)

Project Officer 4 – FSDP Secretariat

Mr Chitoshi M. Mutabukilangombe

(Attached from the Pensions & Insurance

Authority)

Project Officer 5 – FECU

Mr Peter Schuessler

(Attached from the German Savings

Banks Foundation for International

Cooperation (SBFIC)

Financial Education Adviser – FECU

Mr. Mubanga Kondolo

(Attached from Bank of Zambia)

Intern – FECU

49 | P a g e

APPENDIX D

FSDP II Working Groups

PILLAR NEW WORKING GROUPS

UNDER PHASE II

PREVIOUS PHASE I WORKING

GROUPS RATIONALISED

PILLAR I:

MARKET

INFRASTRUCTURE

1. Legal Reforms and

Corporate Governance

Working Group

- Legal & Regulatory Infrastructure

- Corporate Governance

2. Payments Systems Working

Group

- Payment Systems

PILLAR II:

INCREASING

COMPETITION

3. Market Efficiency and

Contractual Savings Working

Group

- Macroeconomics

- Accounting and Auditing

- Taxation

- Contractual Savings

4. Financial Education

Working Group

- Financial Access

- Human Resources

PILLAR III:

ACCESS TO

FINANCE

5. Access to Finance Working

Group

- Banking

- Non-Bank Financial Institutions

6. Financial Markets Working

Group

- Financial Markets

50 | P a g e

FSDP WORKING GROUPS AND RESPECTIVE CHAIRPERSONS

WORKING GROUP CHAIRPERSONS

Market Efficiency and

Contractual Savings

Mr Titus Kalenga,

Chief Executive Officer, NICO Insurance

(Representing the insurance industry)

Financial Markets Mr Brian Tembo,

Chief Executive Officer, Lusaka Stock Exchange

(Representing the Securities industry)

Legal and Regulatory Reform Mr Andrew Mwansa, Legal Counsel, Pensions & Insurance Authority (PIA)

(Representing the Pensions and Insurance Authority)

Access to Finance Mr Michael Mbulo,

Programme Manager, Rural Finance Programme

(Representing rural finance issues)

Financial Education Mrs Namakau M. Ntini,

Manager, Policy and Analysis

(Representing the Pensions and Insurance Authority)

Payments Systems Dr Chabuka Jerome Kawesha, Vice President –South, Zambia Chamber of Commerce and Industry

(Representing the payment systems industry)

NB: As at Q4 - 2014

51 | P a g e

APPENDIX E Working Group No. Initial List of FSDP Working Group Members (By Institution)

FINANCIAL EDUCATION 1 Bankers Association of Zambia (BAZ)

2 BoZ (Bank Supervision Department)

3 Competition & Consumer Protection Commission (CCPC)

4 Zambia Institute of Bankers

5 Economics Association of Zambia

6 Ministry of Finance

7 Association of Microfinance Institutions in Zambia

8 FinMark Trust Zambia

9 Ministry of Commerce – Private Sector Development Unit

FINANCIAL MARKETS 1 BoZ (Financial Markets Department)

2 BAZ

3 SEC/LuSE

4 Financial Markets (Dealers) Association of Zambia

5 Zambia Venture Capital Fund

6 Association of Pension Fund Managers

7 MoF

8 9

Stock Brokers (Z) Ltd ZRA

LEGAL REFORMS & 1 BoZ (Bank Secretariat)

CORPORATE GOVERNANCE 2 Law Association of Zambia (LAZ)

3 Ministry of Justice

4 PIA

5 SEC

6 Institute of Directors of Zambia

7 Association of Bureaux de Change in Zambia

8 Zambia Private Sector Alliance (Formerly Zambia Business Forum)

9 MoF

10 Zambia Institute of Chartered Accountants

MARKET EFFICIENCY 1 MoF

2 BoZ (Economics Department)

3 Rural Finance Programme (RFP)

4 Economic Association of Zambia

5 University of Zambia – Economics Dept

6 7 8 9

Zambia Revenue Authority ZICA BAZ Association of Micro finance Institutions in Zambia (AMIZ)

ACCESS TO FINANCE 1 BoZ (Non-Bank Financial Institution Supervision Department)

2 Ministry of Finance (MoF)

3 Association of Bureaux de Change in Zambia (ABDCZ)

4 ABDCZ

5 Building Societies Association

6 Development Bank of Zambia

7 Leasing Association of Zambia

8 National Savings and Credit Bank

9 AMIZ

PAYMENT SYSTEMS 1 BoZ (Banking Currency and Payment Systems Department)

2 PIA

3 Zambia Electronic Clearing House

4 Lusaka Stock Exchange

5 Celpay Zambia Limited

6 BAZ

7 Zambia Postal Services ( ZAMPOST)

8 Zamtel/ MTZL

9 ZICTA (formerly Communications Authority of Zambia)

10 Airtel (formerly Zain Zambia Limited)

52 | P a g e

INSTITUTIONAL REPRESENTATION AT FSDP

WORKING GROUP MEETINGS (2010 – 2014)

APPENDIX E.2A - Institutional Representation At FSDP Access To Finance Working Group Meetings

(January – December 2011 period)

Me

eti

ng

Da

te

18

Jan

20

11

15

Feb

20

11

15

Mar

20

11

19

Ap

r 2

01

1

17

May

20

11

30

Ju

n 2

01

1

19

Ju

l 20

11

16

Au

g 2

01

1

27

Sep

t 2

01

1

18

Oct

20

11

15

No

v 2

01

1

13

Dec

20

11

Attendance

(%)

MOF 58%

MOCTI 50%

AMIZ 100%

NSCB 100%

DBZ 75%

BSA 50%

BAZ 83%

RFP 67%

CCPC 75%

ALCZ 75%

BOZ - BSD 83%

BOZ-NBFISD 92%

KEY

Not Present at meeting

Present at meeting

MOF Ministry of Finance

MOCTI Ministry of Commerce, Trade and Industry

AMIZ Association of Microfinance Institutions of Zambia

NSCB National Savings and Credit Bank

DBZ Development Bank of Zambia

BSA Building Societies Association

BAZ Bankers Association of Zambia

RFP Rural Finance Programme

CCPC Competition and Consumer Protection Commission

ALCZ Association of Leasing Companies of Zambia

BOZ - BSD Bank of Zambia - Bank Supervision Department

BOZ-NBFISD Bank of Zambia - Non-Bank Financial Institutions Supervision Department

53 | P a g e

APPENDIX E.2B - Institutional Representation At FSDP Access To Finance Working Group Meetings

(January – December 2012 period)

Me

eti

ng

Da

te

17

Jan

20

12

15

Feb

20

12

10

Ap

ril 2

01

2

24

Ap

r 2

01

2

15

May

20

12

30

Ju

n 2

01

2

17

Ju

ly 2

01

2

23

Au

g 2

01

2

18

Sep

t 2

01

2

6 N

ov

20

12

Attendance

(%)

MOF 60%

MoCTI 0%

AMIZ 60%

NSCB 70%

DBZ 70%

BSA 20%

BAZ 80%

RFP 90%

CCPC 60%

ALCZ 50%

BOZ - BSD 70%

BOZ-NBFISD 70%

SEC 20%

KEY

Not Present at meeting

Present at meeting

MOF Ministry of Finance

MOCTI Ministry of Commerce, Trade and Industry

AMIZ Association of Microfinance Institutions of Zambia

NSCB National Savings and Credit Bank

DBZ Development Bank of Zambia

BSA Building Societies Association

BAZ Bankers Association of Zambia

RFP Rural Finance Programme

CCPC Competition and Consumer Protection Commission

ALCZ Association of Leasing Companies of Zambia

BOZ - BSD Bank of Zambia - Bank Supervision Department

BOZ-NBFISD Bank of Zambia - Non-Bank Financial Institutions Supervision Department

SEC Securities and Exchange Commission

54 | P a g e

APPENDIX E.2C - Institutional Representation At FSDP Access To Finance Working Group Meetings

(January – December 2013 period)

Me

eti

ng

Da

te

22

Jan

20

13

21

Feb

20

13

16

Ap

r 2

01

3

15

May

20

13

18

Ju

ne

20

13

16

Ju

ly 2

01

3

20

Au

g 2

01

3

15

Oct

20

13

19

No

v 2

01

3

10

Dec

20

13

Attendance

(%)

MOF 20%

MoCTI 40%

AMIZ 80%

NSCB 80%

DBZ 30%

BSA 10%

BAZ 70%

RFP 90%

CCPC 70%

ALCZ 40%

BOZ - BSD 90%

BOZ-NBFISD 50%

SEC 80%

KEY

Not Present at meeting

Present at meeting

MOF Ministry of Finance

MOCTI Ministry of Commerce, Trade and Industry

AMIZ Association of Microfinance Institutions of Zambia

NSCB National Savings and Credit Bank

DBZ Development Bank of Zambia

BSA Building Societies Association

BAZ Bankers Association of Zambia

RFP Rural Finance Programme

CCPC Competition and Consumer Protection Commission

ALCZ Association of Leasing Companies of Zambia

BOZ - BSD Bank of Zambia - Bank Supervision Department

BOZ-NBFISD Bank of Zambia - Non-Bank Financial Institutions Supervision Department

SEC Securities and Exchange Commission

55 | P a g e

APPENDIX E.2D - Institutional Representation At FSDP Access To Finance Working Group Meetings

(January – December2014 period)

Me

eti

ng

Da

te

21

Jan

20

14

25

Feb

20

14

29

Ap

ril 2

01

4

3 J

un

e 2

01

4

29

Ju

ly 2

01

4

26

Au

g 2

01

4

23

Sep

20

14

21

Oct

20

14

25

No

v 2

01

4

Attendance

(%)

MOF 86%

MoCTI 43%

AMIZ 100%

NSCB 100%

DBZ 86%

BSA 0%

BAZ 100%

RFP 100%

CCPC 86%

ALCZ 86%

BOZ - BSD 0%

BOZ-NBFISD 86%

SEC 71%

KEY

Not Present at meeting

Present at meeting

MOF Ministry of Finance

MOCTI Ministry of Commerce, Trade and Industry

AMIZ Association of Microfinance Institutions of Zambia

NSCB National Savings and Credit Bank

DBZ Development Bank of Zambia

BSA Building Societies Association

BAZ Bankers Association of Zambia

RFP Rural Finance Programme

CCPC Competition and Consumer Protection Commission

ALCZ Association of Leasing Companies of Zambia

BOZ - BSD Bank of Zambia - Bank Supervision Department

BOZ-NBFISD Bank of Zambia - Non-Bank Financial Institutions Supervision Department

SEC Securities and Exchange Commission

56 | P a g e

APPENDIX E.3A - Institutional Representation At FSDP Financial Education Working Group Meetings

(January – December 2011 period)

Me

eti

ng

D

ate

18

Jan

20

11

15

Feb

20

11

15

Mar

20

11

19

Ap

r 2

01

1

31

May

20

11

21

Ju

n 2

01

1

26

Ju

l 20

11

23

Au

g 2

01

1

27

Sep

t 2

01

1

18

Oct

20

11

15

No

v 2

01

1

13

Dec

20

11

Attendance

(%)

MOF 50%

MOESVT 33%

JAZ 75%

EAZ 50%

ZIHRM 83%

ZICA 100%

ZANACO 83%

BAZ 33%

SEC 100%

PIA 92%

ZIBFS 33%

AMIZ 58%

CEEC 42%

BOZ - NBFISD 67%

BOZ - BSD 50%

KEY Not Present at meeting

Present at meeting

MOF Ministry of Finance

MOESVT Ministry of Education, Science & Vocational Training

JAZ Junior Achievement Zambia

EAZ Economics Association of Zambia

ZIHRM Zambia Institute of Human Resource Management

ZICA Zambia Institute of Chartered Accountants

ZANACO Zambia National Commercial Bank

BAZ Bankers Association of Zambia

SEC Securities and Exchange Commission

PIA Pensions and Insurance Authority

ZIBFS Zambia Institute of Banking and Financial Services

AMIZ Association of Microfinance Institutions of Zambia

CEEC Citizens Economic Empowerment Commission

BOZ - NBFISD Bank of Zambia - Non-Bank Financial Institutions Supervision Department

BOZ - BSD Bank of Zambia - Bank Supervision Department

57 | P a g e

APPENDIX E.3B - Institutional Representation At FSDP Financial Education Working Group Meetings

(January – December 2012 period)

Me

eti

ng

D

ate

17

Jan

20

12

14

Feb

20

12

2

7 M

ar 0

12

24

Ap

r 2

01

2

15

May

20

12

19

Ju

n 2

01

2

24

Ju

ly 2

01

2

23

Au

g 2

01

2

18

Sep

t 2

01

2

6 N

ov

20

12

4 D

ec 2

01

2

Attendance

(%)

MOF 55%

MOESVT 55%

JAZ 91%

EAZ 36%

ZIHRM 100%

ZICA 73%

ZANACO 82%

BAZ 73%

SEC 64%

PIA 82%

ZIBFS 0%

AMIZ 55%

CEEC 0%

BOZ - NBFISD 36%

BOZ - BSD 55%

KEY Not Present at meeting

Present at meeting

MOF Ministry of Finance

MOESVT Ministry of Education, Science & Vocational Training

JAZ Junior Achievement Zambia

EAZ Economics Association of Zambia

ZIHRM Zambia Institute of Human Resource Management

ZICA Zambia Institute of Chartered Accountants

ZANACO Zambia National Commercial Bank

BAZ Bankers Association of Zambia

SEC Securities and Exchange Commission

PIA Pensions and Insurance Authority

ZIBFS Zambia Institute of Banking and Financial Services

AMIZ Association of Microfinance Institutions of Zambia

CEEC Citizens Economic Empowerment Commission

BOZ - NBFISD Bank of Zambia - Non-Bank Financial Institutions Supervision Department

BOZ - BSD Bank of Zambia - Bank Supervision Department

58 | P a g e

APPENDIX E.3C - Institutional Representation At FSDP Financial Education Working Group Meetings

(January – December 2013 period)

Me

eti

ng

D

ate

22

Jan

20

13

21

Feb

20

13

1

6 A

pr

20

13

15

May

20

13

18

Ju

ne

20

13

16

Ju

ly 2

01

3

20

Au

g 2

01

3

15

Oct

20

13

19

No

v 2

01

3

10

Dec

20

13

Attendance

(%)

MOF 30%

MOESVT 70%

JAZ 80%

EAZ 100%

ZIHRM 50%

ZICA 90%

ZANACO 70%

BAZ 80%

SEC 80%

PIA 80%

ZIBFS 0%

AMIZ 80%

CEEC 20%

BOZ - NBFISD 20%

BOZ - BSD 50%

KEY Not Present at meeting

Present at meeting

MOF Ministry of Finance

MOESVT Ministry of Education, Science & Vocational Training

JAZ Junior Achievement Zambia

EAZ Economics Association of Zambia

ZIHRM Zambia Institute of Human Resource Management

ZICA Zambia Institute of Chartered Accountants

ZANACO Zambia National Commercial Bank

BAZ Bankers Association of Zambia

SEC Securities and Exchange Commission

PIA Pensions and Insurance Authority

ZIBFS Zambia Institute of Banking and Financial Services

AMIZ Association of Microfinance Institutions of Zambia

CEEC Citizens Economic Empowerment Commission

BOZ - NBFISD Bank of Zambia - Non-Bank Financial Institutions Supervision Department

BOZ - BSD Bank of Zambia - Bank Supervision Department

59 | P a g e

APPENDIX E.3D - Institutional Representation At FSDP Financial Education Working Group Meetings

(January – December 2014 period)

Me

eti

ng

D

ate

21

Jan

20

14

21

Feb

20

14

2

9 A

pr

20

14

3

Ju

ne

20

14

29

Ju

ly 2

01

4

16

Sep

20

14

27

Oct

20

14

Attendance

(%)

MOF 100%

MOESVT 50%

JAZ 50%

EAZ 83%

ZIHRM 50%

ZICA 100%

ZANACO 67%

BAZ 67%

SEC 83%

PIA 100%

ZIBFS 0%

AMIZ 67%

CEEC 67%

BOZ - NBFISD 83%

BOZ - BSD 33%

KEY Not Present at meeting

Present at meeting

MOF Ministry of Finance

MOESVT Ministry of Education, Science & Vocational Training

JAZ Junior Achievement Zambia

EAZ Economics Association of Zambia

ZIHRM Zambia Institute of Human Resource Management

ZICA Zambia Institute of Chartered Accountants

ZANACO Zambia National Commercial Bank

BAZ Bankers Association of Zambia

SEC Securities and Exchange Commission

PIA Pensions and Insurance Authority

ZIBFS Zambia Institute of Banking and Financial Services

AMIZ Association of Microfinance Institutions of Zambia

CEEC Citizens Economic Empowerment Commission

BOZ - NBFISD Bank of Zambia - Non-Bank Financial Institutions Supervision Department

BOZ - BSD Bank of Zambia - Bank Supervision Department

60 | P a g e

APPENDIX E.4A - Institutional Representation At FSDP Financial Markets Working Group Meetings

(January – December 2011 period)

Me

eti

ng

Da

te

19

Jan

20

11

16

Mar

20

11

28

Ap

r 2

01

1

01

Ju

n 2

01

1

29

Ju

n 2

01

1

25

Ju

l 20

11

31

Au

g 2

01

1

4 O

ct 2

01

1

26

Oct

20

11

24

No

v 2

01

1 Attendance

(%)

ZBTA 100%

SEC/SBZ 40%

BAZ 30%

ZAPF 50%

BoZ-FM 90%

ZRA 80%

LUSE 90%

KEY

Present at meeting

Not Present at meeting

ZBTA Zambia Bond Traders Association

SEC/SBZ Securities and Exchange Commission / Stockbrokers Zambia Limited

BAZ Bankers Association of Zambia

ZAPF Zambia Association of Pension Funds

BoZ-FM Bank of Zambia Economics Department

ZRA Zambia Revenue Authority

LUSE Lusaka Stock Exchange

61 | P a g e

APPENDIX E.4B - Institutional Representation At FSDP Financial Markets Working Group Meetings

(January – December 2012 period)

Me

eti

ng

Da

te

18

Jan

20

12

28

Feb

20

12

21

Mar

20

12

31

May

20

12

23

Au

g 2

01

2

25

Sep

t 2

01

2

25

No

v 2

01

2

Attendance

(%)

ZBTA 86%

SEC/SBZ 57%

BAZ 0%

ZAPF 57%

BoZ-FM 86%

ZRA 71%

LUSE 71%

BDEZ 43%

ACCE 43%

KEY

Present at meeting

Not Present at meeting

ZBTA Zambia Bond Traders Association

SEC/SBZ Securities and Exchange Commission / Stockbrokers Zambia Limited

BAZ Bankers Association of Zambia

ZAPF Zambia Association of Pension Funds

BoZ-FM Bank of Zambia Economics Department

ZRA Zambia Revenue Authority

LUSE Lusaka Stock Exchange

BDEZ Bond and Derivative Exchange Zambia Plc

ACCE African Carbon Credit Exchange

62 | P a g e

APPENDIX E.4C - Institutional Representation At FSDP Financial Markets Working Group Meetings

(January – December 2013 period)

Me

eti

ng

Da

te

23

Jan

20

13

21

Feb

20

13

15

May

20

13

19

Ju

ne

20

13

25

Ju

ly 2

01

3

28

Au

g 2

01

3

20

No

v 2

01

3

4 D

ec 2

01

3

Attendance

(%)

ZBTA 63%

SEC/SBZ 75%

BAZ 25%

ZAPF 88%

BoZ-FM 75%

ZRA 25%

LUSE 63%

BDEZ 50%

ACCE 88%

MoF 25%

KEY

Present at meeting

Not Present at meeting

ZBTA Zambia Bond Traders Association

SEC/SBZ Securities and Exchange Commission / Stockbrokers Zambia Limited

BAZ Bankers Association of Zambia

ZAPF Zambia Association of Pension Funds

BoZ-FM Bank of Zambia Economics Department

ZRA Zambia Revenue Authority

LUSE Lusaka Stock Exchange

BDEZ Bond and Derivative Exchange Zambia Plc

ACCE African Carbon Credit Exchange

MoF Ministry of Finance

63 | P a g e

APPENDIX E.4D - Institutional Representation At FSDP Financial Markets Working Group Meetings

(January – December 2014 period)

Me

eti

ng

Da

te

28

Feb

20

14

23

Ap

ril 2

01

4

20

Sep

t 2

01

4

13

No

v 2

01

4

Attendance

(%)

ZBTA 67%

SEC/SBZ 100%

BAZ 0%

ZAPF 67%

BoZ-FM 67%

ZRA 100%

LUSE 67%

BDEZ 67%

ACCE 33%

MoF 67%

KEY

Present at meeting

Not Present at meeting

ZBTA Zambia Bond Traders Association

SEC/SBZ Securities and Exchange Commission / Stockbrokers Zambia Limited

BAZ Bankers Association of Zambia

ZAPF Zambia Association of Pension Funds

BoZ-FM Bank of Zambia Economics Department

ZRA Zambia Revenue Authority

LUSE Lusaka Stock Exchange

BDEZ Bond and Derivative Exchange Zambia Plc

ACCE African Carbon Credit Exchange

MoF Ministry of Finance

64 | P a g e

APPENDIX E.5A - Institutional Representation At FSDP Legal Reforms & Corporate Governance Working Group

Meetings (January – December 2011 period)

Me

eti

ng

Da

te

24

Jan

20

11

17

Feb

20

11

24

Mar

20

11

21

Ap

r 2

01

1

19

May

20

11

21

Ju

l 20

11

25

Au

g 2

01

1

20

Oct

20

11

Attendance

(%)

BAZ 87%

BOZ – B/SECD 25%

IOD 63%

PIA 75%

SEC 87%

LAZ 63%

ZBF 87%

CEEC 50%

ZICA 37%

KEY

Not Present at meeting

Present at meeting

BAZ Bankers Association of Zambia

BOZ - B/SECD Bank of Zambia – Bank Secretariat Department

IOD Institute of Directors

PIA Pensions and Insurance Authority

SEC Securities and Exchange Commission

LAZ Law Association of Zambia

ZBF Zambia Business Forum

CEEC Citizens Economic Empowerment Commission

ZICA Zambia Institute of Chartered Accountants

65 | P a g e

APPENDIX E.5B - Institutional Representation At FSDP Legal Reforms & Corporate Governance Working Group

Meetings (January – December 2012 period)

Me

eti

ng

Da

te

19

Jan

20

12

16

Feb

20

12

22

Mar

20

12

10

May

20

12

21

Ju

ne

20

12

23

Au

g 2

01

2

20

Sep

20

12

15

No

v 2

01

2 Attendance

(%)

BAZ 88%

BOZ – B/SECD 38%

IOD 100%

PIA 50%

SEC 75%

LAZ 63%

ZBF 38%

CEEC 25%

ZICA 25%

KEY

Not Present at meeting

Present at meeting

BAZ Bankers Association of Zambia

BOZ - B/SECD Bank of Zambia – Bank Secretariat Department

IOD Institute of Directors

PIA Pensions and Insurance Authority

SEC Securities and Exchange Commission

LAZ Law Association of Zambia

ZBF Zambia Business Forum

CEEC Citizens Economic Empowerment Commission

ZICA Zambia Institute of Chartered Accountants

66 | P a g e

APPENDIX E.5C - Institutional Representation At FSDP Legal Reforms & Corporate Governance Working Group

Meetings (January – December 2013 period)

Me

eti

ng

Da

te

25

Jan

20

13

21

Feb

20

13

19

Ju

ne

20

13

15

May

20

13

21

Ju

ne

20

13

19

Ju

ly 2

01

3

22

No

v 2

01

3

Attendance

(%)

BAZ 57%

BOZ – B/SECD 57%

IOD 100%

PIA 57%

SEC 57%

LAZ 71%

ZBF 14%

CEEC 29%

ZICA 71%

KEY

Not Present at meeting

Present at meeting

BAZ Bankers Association of Zambia

BOZ - B/SECD Bank of Zambia – Bank Secretariat Department

IOD Institute of Directors

PIA Pensions and Insurance Authority

SEC Securities and Exchange Commission

LAZ Law Association of Zambia

ZBF Zambia Business Forum

CEEC Citizens Economic Empowerment Commission

ZICA Zambia Institute of Chartered Accountants

67 | P a g e

APPENDIX E.5D - Institutional Representation At FSDP Legal Reforms & Corporate Governance Working Group

Meetings16 (January – September 2014 period)

Me

eti

ng

Da

te

Attendance

(%)

BAZ

BOZ – B/SECD

IOD

PIA

SEC

LAZ

ZBF

CEEC

ZICA

KEY

Not Present at meeting

Present at meeting

BAZ Bankers Association of Zambia

BOZ - B/SECD Bank of Zambia – Bank Secretariat Department

IOD Institute of Directors

PIA Pensions and Insurance Authority

SEC Securities and Exchange Commission

LAZ Law Association of Zambia

ZBF Zambia Business Forum

CEEC Citizens Economic Empowerment Commission

ZICA Zambia Institute of Chartered Accountants

16

Meetings were not held during the 1st quarter of 2014

68 | P a g e

APPENDIX E.6A - Institutional Representation At FSDP Market Efficiency & Contractual Savings Working Group

Meetings (January – December 2011 period)

Me

eti

ng

Da

te

26

Jan

20

11

16

Feb

20

11

23

Mar

20

11

20

Ap

r 2

01

1

26

May

20

11

22

Ju

ne

20

11

20

Ju

l 20

11

24

Au

g 2

01

1

28

Sep

20

11

16

No

v 2

01

1

14

Dec

20

11

Attendance

(%)

TAG 82%

SEC 82%

PIA 91%

ZBF 82%

EAZ 73%

BoZ-HR 55%

BoZ-Econ 36%

ZICA 82%

IAZ 73%

ZAPFM 45%

ZRA 55%

KEY

Present at meeting

Not Present at meeting

TAG Micro insurance Technical Advisory Group

SEC Securities and Exchange Commission

PIA Pensions and Insurance Authority

ZBF Zambia Business Forum

EAZ Economics Association of Zambia

BoZ-HR Bank of Zambia Human Resources Department

BoZ-Econ Bank of Zambia Economics Department

ZICA Zambia Institute of Chartered Accountants

IAZ Insurers Association of Zambia

ZAPFM Zambia Association of Pension Funds

ZRA Zambia Revenue Authority

69 | P a g e

APPENDIX E.6B - Institutional Representation At FSDP Market Efficiency & Contractual Savings Working Group

Meetings (January – December 2012 period)

Me

eti

ng

Da

te

18

Jan

20

12

15

Feb

20

12

21

Mar

20

12

23

Ap

r 2

01

2

09

May

20

12

26

Ju

ne

20

12

23

Au

g 2

01

2

19

Sep

t 2

01

2

21

No

v 2

01

2

Attendance

(%)

TAG 78%

SEC 67%

PIA 78%

ZBF 67%

EAZ 44%

BoZ-HR 11%

BoZ-Econ 22%

ZICA 78%

IAZ 44%

ZAPFM 56%

ZRA 56%

KEY

Present at meeting

Not Present at meeting

TAG Micro insurance Technical Advisory Group

SEC Securities and Exchange Commission

PIA Pensions and Insurance Authority

ZBF Zambia Business Forum

EAZ Economics Association of Zambia

BoZ-HR Bank of Zambia Human Resources Department

BoZ-Econ Bank of Zambia Economics Department

ZICA Zambia Institute of Chartered Accountants

IAZ Insurers Association of Zambia

ZAPFM Zambia Association of Pension Funds

ZRA Zambia Revenue Authority

70 | P a g e

APPENDIX E.6C - Institutional Representation At FSDP Market Efficiency & Contractual Savings Working Group

Meetings (January – December 2013 period)

Me

eti

ng

Da

te

18

Jan

20

13

21

Feb

20

13

24

Ap

r 2

01

3

15

May

20

13

19

Ju

ne

20

13

17

Ju

ly 2

01

3

28

Au

g 2

01

3

30

Oct

20

13

20

No

v 2

01

3

Attendance

(%)

TAG 78%

SEC 11%

PIA 78%

ZBF 78%

EAZ 67%

BoZ-HR 11%

BoZ-Econ 33%

ZICA 78%

IAZ 56%

ZAPFM 33%

ZRA 56%

KEY

Present at meeting

Not Present at meeting

TAG Micro insurance Technical Advisory Group

SEC Securities and Exchange Commission

PIA Pensions and Insurance Authority

ZBF Zambia Business Forum

EAZ Economics Association of Zambia

BoZ-HR Bank of Zambia Human Resources Department

BoZ-Econ Bank of Zambia Economics Department

ZICA Zambia Institute of Chartered Accountants

IAZ Insurers Association of Zambia

ZAPFM Zambia Association of Pension Funds

ZRA Zambia Revenue Authority

71 | P a g e

APPENDIX E.6C - Institutional Representation At FSDP Market Efficiency & Contractual Savings Working Group

Meetings (January – September 2014 period)

Me

eti

ng

Da

te

22

Jan

20

14

26

Feb

20

14

23

Ap

ril 2

01

4

30

Ju

ly 2

01

4

24

Sep

20

14

Attendance

(%)

TAG 100%

SEC 0%

PIA 100%

ZPSA 80%

EAZ 80%

BoZ-HR 0%

BoZ-Econ 0%

ZICA 60%

IAZ 80%

ZAPFM 40%

ZRA 80%

KEY

Present at meeting

Not Present at meeting

TAG Micro insurance Technical Advisory Group

SEC Securities and Exchange Commission

PIA Pensions and Insurance Authority

ZPA Zambia Private Sector Alliance

EAZ Economics Association of Zambia

BoZ-HR Bank of Zambia Human Resources Department

BoZ-Econ Bank of Zambia Economics Department

ZICA Zambia Institute of Chartered Accountants

IAZ Insurers Association of Zambia

ZAPFM Zambia Association of Pension Funds

ZRA Zambia Revenue Authority

72 | P a g e

APPENDIX E.7A - Institutional Representation At FSDP Payment Systems Working Group Meetings

(January – December 2011 period)

Me

eti

ng

Da

te

21

Jan

20

11

18

Feb

20

11

18

Mar

20

11

27

Ap

r 2

01

1

20

May

20

11

22

Ju

l 20

11

21

Oct

20

11

19

No

v 2

01

1

16

Dec

20

11

Attendance

(%)

BOZ-BCPSD 78%

CELPAY 78%

ZECH 78%

AIRTEL 55%

ZICTA 55%

ZRA 44%

BAZ 44%

ZPS 100%

MTZ 33%

LuSE 78%

KEY

Not Present at meeting

Present at meeting

BOZ-BCPSD Bank of Zambia – Banking, Currency and Payment Systems Department

CELPAY Celpay Zambia Limited

ZECH Zambia Electronic Clearing House

AIRTEL Airtel Zambia Limited

ZICTA Zambia Information and Communication Technologies Limited

ZRA Zambia Revenue Authority

BAZ Bankers Association of Zambia

ZPS Zambia Postal Services

MTZ Mobile transactions Zambia Ltd

LuSE Lusaka Stock Exchange

73 | P a g e

APPENDIX E.7B - Institutional Representation At FSDP Payment Systems Working Group Meetings

(January – December 2012 period)

Me

eti

ng

Da

te

25

Jan

20

12

17

Feb

20

12

27

Ju

ly 2

01

2

23

Au

g 2

01

2

28

Sep

t 2

01

2

16

No

v 2

01

2

Attendance

(%)

BOZ-BCPSD 67%

CELPAY 50%

ZECH 83%

AIRTEL 67%

ZICTA 100%

ZRA 33%

BAZ 100%

ZPS 83%

MTZ 17%

LuSE 83%

SEC 17%

KEY

Not Present at meeting

Present at meeting

BOZ-BCPSD Bank of Zambia – Banking, Currency and Payment Systems Department

CELPAY Celpay Zambia Limited

ZECH Zambia Electronic Clearing House

AIRTEL Airtel Zambia Limited

ZICTA Zambia Information and Communication Technologies Limited

ZRA Zambia Revenue Authority

BAZ Bankers Association of Zambia

ZPS Zambia Postal Services

MTZ Mobile transactions Zambia Ltd

LuSE Lusaka Stock Exchange

SEC Securities Exchange Commission

74 | P a g e

APPENDIX E.7C - Institutional Representation At FSDP Payment Systems Working Group Meetings

(January – December 2013 period)

Me

eti

ng

Da

te

25

Jan

20

13

17

Feb

20

13

18

Ap

r 2

01

3

15

May

20

13

20

Ju

ne

20

13

17

Oct

20

13

Attendance

(%)

BOZ-BCPSD 67%

CELPAY 0%

ZECH 33%

AIRTEL 67%

ZICTA 50%

ZRA 33%

BAZ 67%

ZPS 83%

MTZ 0%

LuSE 50%

SEC 83%

KEY

Not Present at meeting

Present at meeting

BOZ-BCPSD Bank of Zambia – Banking, Currency and Payment Systems Department

CELPAY Celpay Zambia Limited

ZECH Zambia Electronic Clearing House

AIRTEL Airtel Zambia Limited

ZICTA Zambia Information and Communication Technologies Limited

ZRA Zambia Revenue Authority

BAZ Bankers Association of Zambia

ZPS Zambia Postal Services

MTZ Mobile transactions Zambia Ltd

LuSE Lusaka Stock Exchange

SEC Securities Exchange Commission

75 | P a g e

APPENDIX E.7D - Institutional Representation At FSDP Payment Systems Working Group Meetings17

(January – December 2014 period)

Me

eti

ng

Da

te

26

Ju

ne

20

14

31

Ju

ly 2

01

4

29

Sep

t 2

01

4

20

No

v 2

01

4

18

Dec

20

14

Attendance

(%)

BOZ-BCPSD 60%

CELPAY 0%

ZECH 60%

AIRTEL 100%

ZICTA 20%

ZRA 80%

BAZ 100%

ZPS 100%

MTZ 0%

LuSE 0%

SEC 100%

KEY

Not Present at meeting

Present at meeting

BOZ-BCPSD Bank of Zambia – Banking, Currency and Payment Systems Department

CELPAY Celpay Zambia Limited

ZECH Zambia Electronic Clearing House

AIRTEL Airtel Zambia Limited

ZICTA Zambia Information and Communication Technologies Limited

ZRA Zambia Revenue Authority

BAZ Bankers Association of Zambia

ZPS Zambia Postal Services

MTZ Mobile transactions Zambia Ltd

LuSE Lusaka Stock Exchange

SEC Securities Exchange Commission

17

Meetings were not held during the 1st quarter of 2014

76 | P a g e

APPENDIX F

77 | P a g e

APPENDIX G

78 | P a g e

APPENDIX H

FSDP PHASE II

ACTIVITY PLANS AND BUDGETS