12/09/2025
APPROXIMATELY 90% OF DEPOSIT ACCOUNTS IN ZAMBIA HOLD BALANCES BELOW K50,000 – BANK OF ZAMBIA
By: Augustine Kapambwe
The Bank of Zambia has acknowledged significant progress in financial inclusion, banking sector stability, and fiscal consolidation, while emphasizing ongoing reforms to further strengthen the financial system.
Speaking at the 2025 Banking and Financial Services Conference hosted by the Zambia Institute of Banking and Financial Services in Livingstone, BOZ Governor Dr. Denny Kalyalya revealed that approximately 90% of deposit accounts in Zambia hold balances below K50,000.
However, these accounts represent only 70% of total deposit value, indicating a concentration of deposits among a few large players.
Dr. Kalyalya said this reflects both the resilience and vulnerabilities of the financial sector, and presents an opportunity to expand financial services to more Zambians.
He noted that non-performing loans remain well below benchmark thresholds, signaling stability in asset quality.
To further enhance public confidence, the Governor announced the introduction of a Deposit Insurance Scheme by the end of 2025, aimed at providing structured protection for depositors.
He also highlighted a decline in the banking sector’s reliance on government securities, which dropped from 23% in 2020 to 20% in 2024, reflecting improved fiscal management and progress in debt restructuring.
He pointed out that fiscal deficits, which were around 40 percent of GDP in 2020, have now fallen sharply to approximately 3.4 percent, underscoring Zambia’s strengthened public financial position.
Dr. Kalyalya emphasized the central role of micro, small, and medium-sized enterprises in driving financial inclusion, noting that the Bank of Zambia is leveraging technology to reduce service costs and expand access.
This was in a speech delivered on his behalf by Bank of Zambia Deputy Governor Francis Chipimo.
Meanwhile, Zambia Institute of Banking and Financial Services President, Lishala Situmbeko, highlighted the pivotal role of finance leaders in addressing climate change and social inequality, calling for more inclusive and sustainable financial systems.
