Bank of Zambia

According to its website, the principal responsibility of the bank is to create and implement monetary policy that will maintain the economic stability of the country. The Bank is active in promoting financial inclusion policy and is a leading member of the Alliance for Financial Inclusion. It is also one of the original 17 regulatory institutions to make specific national commitments to financial inclusion under the Maya Declaration, during the Global Policy Forum, held in Riviera Maya, Mexico in 2011.[3]

"To be a Dynamic and Credible Central Bank that contributes to the Economic Development of Zambia."

The Bank strives to be vibrant and responsive to the changes in the operating environment, as well as, engendering confidence and trust among its stakeholders in discharging its mandate. The Bank seeks to play a key role in the economic development of Zambia by pursuing appropriate monetary and financial stability policies that will enable the country to become a Prosperous Middle Income Country by 2030.[4]

"To Achieve and Maintain Price and Financial System Stability to foster Sustainable Economic Development"

The Mission is drawn from the Bank's mandate which is established by article 213 of the Constitution (Amendment) Act No. 2 of 2016 and the Bank of Zambia Act, Chapter 360 of the Laws of Zambia, and is anchored on the responsibilities of price and financial system stability.[5]

The Bank's Value system is underpinned by the slogan "The BOZ Way means ACTIONE".

The word "ACTIONE" stands for:

Accountability - We will take responsibility for the decisions and actions that we take.

Commitment to Excellence - We will always identify, agree and meet the requirements of both internal and external stakeholders and honour the commitments we make efficiently and to the                                                          highest quality standards.

Timeliness - We will always be on time in attending to Bank business.

Integrity - We will be honest, transparent, professional and be sincere in all our dealings.

Objectives - We will set ourselves challenging, specific, measurable, achievable, realistic and timebound (SMART) objectives and will work diligently towards achieving them.

New Ideas - We will be innovative and open to new ideas and develop for ourselves and our colleagues the skills to meet current and future challenges.

Equity - We will be fair and impartial in all our dealings.

Values for Bank of Zambia as an institutions in relation to its stakeholders, namely:

Efficiency  - The Bank of Zambia will strive to accomplish its work with minimal resources and in a time frame appropriate for the tasks at hand.

Transparency - The Bank of Zambia will frequently communicate with governmental authorities, the National Assembly and the public concerning its policies, operations, and financial condition                                  that will enable its stakeholders to assess the Bank's performance in relation to its objectives.

Accountability - The Bank of Zambia will be accountable for its policies and operations in relation to its mission.[6]

1. To ensure appropriate monetary policy formulation and implementation;
2. To  provide banking services to Government , commercial banks and to act as Settlement Agent;
3. To license, regulate and supervise banks and financial service institutions;
4. To ensure a safe and sound financial system and;
5. To manage the banking, currency and payment systems operations of the Bank of Zambia.[7]

Since its inception, the Bank of Zambia has gone through various changes in its organisational structure. Overtime, this has resulted into an organisational structure which has become more focused on the core activities of the central bank. Furthermore, the Bank has shed off staff in areas where outsiders could easily be contracted to provide the same services more satisfactorily. The areas now being contracted to external bodies include: outside security, canteen services, club and maintenance. As a result of the restructuring exercise, the Bank has seen the total number of staff fall from 1,400 to well below 850. But while more such functions have been dropped, others more critical in the new liberalised environment have emerged. These new areas are mainly in the policy making arena.[8]

The Bank of Zambia has fourteen departments. Namely; Banking, Currency and Payment Systems ,Bank Supervison ,Board Services ,Economics ,Finance ,Financial Markets ,Human Resources ,Information and Communication Technology, Internal Audit, Legal Services, Non-Bank Financial Institution Supervision, Procurement and Maintenance Services, Strategy and Risk Management,and the Security Division.[9]

The Board of the Bank of Zambia is composed of the Governor, who is the Chairperson, and six other Directors appointed by the Minister of Finance and National Planning. The Directors are appointed from among persons with professional or academic experience in business or financial matters and who are not officials or employees of the Bank. All Directors of the Board are non-executive directors. The Secretary to the Treasury is an ex-officio member of the Board and without power to vote. The Secretary to the Treasury also does not count for a quorum. The Vice Chairperson is elected by the Board from among the members of the Board. Directors of the Board are appointed for a period of three years and are eligible to be reappointed for another three years. The Board is the overall authority in which all the powers of the Bank are vested. It is responsible for formulation of the Bank of Zambia policy.[10]

The Bank of Zambia has origins in the 1938 formation of the Southern Rhodesia Currency Board, which was based in Harare, in present-day Zimbabwe. The Board's jurisdiction included Northern Rhodesia, now called Zambia and Nyasaland, known as Malawi today.

In 1954 the Southern Rhodesia Currency Board was renamed the Currency Board of Rhodesia and Nyasaland, and as the winds of change were strong in Africa at the time, the currency board was transformed into the Bank of Rhodesia and Nyasaland in 1956.

In 1964 the Bank of Zambia was created from the Bank of Northern Rhodesia, which itself had only formed a year earlier in 1963 from the Lusaka branch of the Rhodesia and Nyasaland bank.

After its creation, and after the passage of the Bank of Zambia Act in 1965, the bank grew and was successful down through the decades. According to its website, the bank acquired an equity stake in the Development Bank of Zambia and the Zambia National Commercial Bank and was even considering diversifying into the agricultural sector.

In 1991, the Movement for Multiparty Democracy (MMD) came to power in Zambia, replacing the United National Independence Party (UNIP) which had ruled for 27 years. The new government's fiscal priorities included liberalization and privatization, which included the Zambian copper industry and Zambian Consolidated Copper Mines (ZCCM), the big company that controlled copper production in Zambia.

• H. C. Harret, 1964-1967[11]
• Justin B. Zulu, 1967-1970[11]
• Valentine Musakanya, 1970-1972[11]
• Bitwell Kuwani, 1972-1976[11]
• Luke Mwananshiku, 1976-1981[11]
• Bitwell Kuwani, 1981-1984[11]
• David Phiri, 1984-1986[11]
• Leonard Chivuno, 1986-1987[11]
• Francis Nkhoma, 1987-1989[11]
• Jacques Bussières, 1990-1992[11]
• Dominic Mulaisho, 1992-1995[11]
• Jacob Mwanza, 1995-2002[11]
• Caleb Fundanga, 2002-2011[11]
• Michael Gondwe, 2011-2015[11]
• Denny Kalyalya, 2015-

• List of central banks and currencies of Africa
• Economy of Zambia
• Zambian kwacha
• Tukiya Kankasa-Mabula

• Official site: Bank of Zambia