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Transcript of 77_FSDPProgressReportMarch 2015Final
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.
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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)
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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