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
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
ii | P a g e
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)
(ii)
(iii)
2.0
Enhancing market infrastructure;

Increasing competition; and
Increasing access to finance.
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,
1|Page
(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.
ii.
iii.
iv.
v.
vi.
vii.
viii.
ix.
Prioritising, sequencing and costing of the remaining FSDP recommendations for

Phase II;
Harmonisation of wider financial sector legislation;
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);
Improving corporate governance among institutions;
Enhancing the payments systems;
Awareness campaigns on financial services & costs.
Bringing National Pensions Scheme Authority (NAPSA) under some independent
supervisory authority and implementing the investment allocation guidelines for
contractual savings providers;
Developing appropriate professional information databases, recruitment and gender
policies at places of work; and,
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.
. 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).
2|Page
Figure1: FSDP Implementation Structure

FSDP
Steering Committee
FSDP
Implementation Committee
FSDP
Secretariat
Working Groups
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:
3|Page
Table 1: FSDP Phase II Working Groups

PILLAR
NEW WORKING GROUPS

UNDER PHASE II
PILLAR I:
1. Legal Reforms and
MARKET
Corporate Governance
INFRASTRUCTURE Working Group
PILLAR II:
INCREASING
COMPETITION
PILLAR III:
ACCESS TO
FINANCE
PREVIOUS PHASE I WORKING

GROUPS RATIONALISED
- Legal & Regulatory Infrastructure
- Corporate Governance
2. Payments Systems Working

Group
- Payment Systems
3. Market Efficiency and

Contractual Savings Working
Group
4. Financial Education
Working Group
- Macroeconomics
- Accounting and Auditing
- Taxation
- Contractual Savings
- Financial Access
- Human Resources
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.
(i) Enhancing market infrastructure; (ii) increasing competition; and (iii) increasing access to finance.
4|Page
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.
5|Page
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 Runners 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 runners 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.
6|Page
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
Movements 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 womens access to financial services in Zambia;
d) Co-hosting the 3rd African Womens 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
7|Page
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 AntiMoney 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 28thNovember, 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.
8|Page
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 countrys 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.
9|Page
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)
2)
3)
4)
5)
6)
7)
Leasing Law;
Building Societies Act;
National Payment Systems Act;
Bills of Exchange Act;
Cheques Act; and
Credit Reporting Law
Personal Property Security Interest Bill
10 | P a g e
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 stakeholders consultative workshop on 18 July 2012. The updated report with
comments from the stakeholders conference was submitted to the Ministry of Finance on 31
July 2012 for Governments 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 Governments 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.
11 | 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 Governments 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 30th 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.
12 | P a g e
The Zambian currency, the Kwacha was rebased by dividing the old currency by 1000 units, in
order to address costs associated with an accumulated loss in the value of the currency that
undermined its basic function as a store of value, medium of exchange and measure of value.
This loss of value was as a result of high inflation rates over a prolonged period of time,
particularly in the 1990s.
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:
Planning &
Stakeholder Input
(Q4 2014 Q1 2015
)
4.2
Development of
Draft Strategy
National Buy In
and Launch
(Q1 Q2 2015)
(Q2 Q3 2015)
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.
13 | P a g e
4.2.1
Table 2: Financial Sector Development Indicators Selected Macro-Economic

Indicators
2005
7.3
2006
9.3
2007
11.1
2008
14.2
2009
11.4
2010
11.6
2011
19.3
2012
14.9
2013
15.3
2014
17.9
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
5.3
6.2
6.2
5.8
6.4
7.1
6.5
7.3
6.5
6.0
18.3
9.0
8.9
16.6
9.9
7.9
7.2
7.3
7.1
7.9
Private Credit/GDP -%
Stock Market Cap/GDP
Ratio (%)
(% in constant 1994
Prices)
Annual Inflation (%)

Source: Bank of Zambia
4.2.2 Table 3: Lusaka Stock Exchange (LuSE) Indicators4

2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2,519
3,662
6,199
8,384
6,619
7,610
7,117
5,681
5,829
5,373
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
No. of Trades
Volume of Shares (million)
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
2005
2009
23.2%5
22.4%
Bank of Zambia Financial Inclusion Index

2010
2011
2012
Weighted6
23.5%
30.1%
30.7%
7
Non-weighted
27.0%
33.4%
32.1%
2013
39.6%
39.9%

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%.
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.
6
14 | 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)
2010
2005
2006
2007
2008
2009
13
15
18
2011
2012
2013
2014
2015
Q2
18
19
19
19
19
19
Banking Sector
-
Commercial
banks
13
13
Non-Bank Financial Institutions Sector

-
Leasing
Companies
Building
Societies
Bureau De
Change
Savings and
Credit Banks
Microfinance
Institutions
Development
Finance
Institutions
Credit
Reference
Bureaux
Money
Transfer
8
Services
Financial
Businesses
Total No. of
Licensed Entities
12
10
12
11
32
31
35
39
44
49
55
57
61
66
67
21
25
25
32
35
33
34
37
10
26
27
28
28
28
28
28
156
163
167
62
64
74
101
131
136
148
154
Source: Bank of Zambia (BoZ)

4.2.6 Mobile Money Subscribers Versus Mobile Phone Subscribers
Name
Number of Mobile
Number of Mobile
Percentage of mobile
Phone Subscribers
Money Subscribers
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%

8
* As at 31stMarch 2015
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
15 | 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
Automated Teller
Machines (ATMs)
No. of ATM Cards
Points of Sale (PoS)
Machines
No. of PoS Transactions
20
05
N/
A
N/
A
N/
A
N/
A
2006
2007
2008
2009
2010
2011
2012
2013
2014
133
357,
000
186
434,
000
295
584,
000
431
879,
000
486
1,082,
000
537
1,359,
000
643
1.676,
982
744
2,104,
860
896
2,552,
949
342
256,
000
420
403,
000
703
468,
000
889
543,
000
1,119
805,00
0
1,784
1,210,
000
2,025
1,677,
179
2,578
1,983,
018
3,266
2,937,
453
Quarter 1
2015
924
2,275,655
3,899
948,236

Note: Comprehensive collection of above statistics commenced 2006.
4.2.8 Tables7 (a c): Financial Sector Development Indicators - Pensions & Insurance Sector
Table 7(a)
INSURANCE
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
20159
Reinsurers
General Insurers
Long Term Insurers
Agents and Brokers
10
15
15
8
2
18
9
2
22
11
93
99
111
139
151
114
278
336
336
356
284
Total No. of Licensed Entities

98
112
123
Source: Pensions and Insurance Authority
150
166
330
296
361
361
385
319
(Including Insurance and Reinsurance

Brokers, Composite, Loss Adjustors and
Assessors, Claims Agents & Risk Surveyors)
Table 7(b)
Gross
Premiums
Million):
Written
(K
2005
2006
2007
2008
2009
2010
General Insurance
296.88
342.45
446.55
550.34
691.78
838.54
Long Term Insurance

Gross Written
Premiums (GWP)
83.97
119.66
179.52
250.70
223.44
233.34
355.35
438.29
518.57
380.85
462.11
626.07
801.04
915.22
1,071.88
1,215.00
1,450.46
1,591.64
GWP/ GDP (at current

prices): %
1.19 %
1.20 %
1.45 %
1.42 %
1.38 %
1.30 %
1.36 %
Source: Pensions and Insurance Authority and CSO

9
These were licensed entities as at 1st January 2015.
16 | P a g e
2011
2012
860.20
1,012.17
2013
1,073.07
1.31%
1.26%
2014
1,215.81
619.83
1,835.64
1.12%
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)
PENSIONS
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
Fund Managers
Fund
Administrators
Custodians
Pension
Schemes
207
221
235
240
241
224
228
234
235
238
223,813
234,644
196,930
202,137
197,315
91,320
96,549
100,672
102,611
106,755
1.189
1.412
1.774
1.874
2.211
2.655
2.822
3.383
4.053
4.739
10
Members
Net Fund Values
(in K Billion)
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 Lenders 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).
11
It 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.
17 | P a g e
FSDP PROGRESS REPORT AS AT DECEMBER 2014

Table 8 - Performance against FSDP Milestones 12
Item
Serial
Number
Legal and regulatory 1.

Reform
Amount
Revised
Time
Expected Output
Frame for
2014
Finalisation
of 2nd Qtr
Amendments to the BoZ
Act
Progress to Date
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.
Colour Code
GREEN
2.
Finalisation of proposed 2nd Qtr

amendments
to
the
Banking and Financial
Services Act
A laymans 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.
3.
Amendments to Building 4th Qtr

Societies Act and Housing
Finance
regulations
submitted to MoF.13
The Building Societies Act (BSA) was initially amended YELLOW

under FSDP Phase I in conjunction with the amendments
to the Banking and Financial Services Act (BFSA).
GREEN
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.
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.
18 | P a g e
Item
19 | P a g e
Serial
Number
Amount
Expected Output
Revised
Time
Frame for
2014
2nd Qtr
Progress to Date
Colour Code
A laymans draft Bill of proposed amendments was GREEN

4.
Securities Act
5.
Pension
Scheme 2nd Qtr
Regulation Act (PSRA)

6.
Insurance Act
2nd Qtr

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.
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
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.
20 | P a g e
Final
proposed 4th Qtr
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
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
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
Harmonized accounting
and Companies Act
4th Qtr
The draft electronic money directives were finalised and

submitted for approval and publication in the
Government Gazette.
YELLOW
2ndQtr
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
Accounting
and 12.
Auditing Standards
21 | P a g e
Item
Banking
22 | P a g e
Serial
Number
Amount
Expected Output
Revised
Time
Frame for
2014
4th Qtr
13.
Draft framework for

branchless banking
14.
Review Know Your 1stQtr

Customer
(KYC)
Requirements
Progress to Date
Colour Code
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
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
Item
Serial
Number
Non-Bank Financial 15.

Institutions
Amount
Revised
Time
Expected Output
Frame for
2014
Develop and implement a 4thQtr
Unified
Collateral
Registry
Progress to Date
YELLOW
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
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.
23 | P a g e
Colour Code
Item
Financial Education
Serial
Number
16.
Amount
Revised
Time
Expected Output
Frame for
2014
Develop and commence 1stQtr
implementation of the
National Strategy on
Financial Education
Progress to Date
Colour Code
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.
GREEN
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. .
24 | P a g e
Item
Contractual Savings
25 | P a g e
Serial
Number
17.
Amount
Revised
Time
Expected Output
Frame for
2014
Amend
the
Pension 1stQtr
Scheme Regulation Act
that exempts the National
Pension
Scheme
Authority (NAPSA) from
supervision.
Progress to Date
Colour Code
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.
GREEN
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.
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
Item
Serial
Number
20.
Amount
Expected Output
Develop Ethics and
Codes
Revised
Time
Frame for
2014
1stQtr
Progress to Date
Colour Code
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.
GREEN
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..
21.
26 | P a g e
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
Item
Serial
Number
Crisis Management & 22.

Market
Exit
Mechanism
Amount
Expected Output
Draft Contingency
planning framework/
Draft Bank Resolution
mechanism
Revised
Time
Frame for
2014
3rd Qtr
Progress to Date
Colour Code
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.
YELLOW
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..
Financial
Identification System
23.
Draft technical proposals 4th Qtr

of the new financial
identification system
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.
27 | P a g e
GREEN
Item
Increasing
Efficiency
Serial
Number
Market 24.
Amount
Expected Output
Develop Curriculum for
training Actuaries
Revised
Time
Frame for
2014
4thQtr
Progress to Date
Colour Code
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.
GREEN
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.
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.
28 | P a g e
GREEN
Item
Serial
Number
26.
Amount
Revised
Time
Expected Output
Frame for
2014
Develop a comprehensive 4th Qtr
personal information data
base in financial sector
Progress to Date
Colour Code
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 nonbank financial institutions under Bank of Zambias
supervisory ambit and will later be extended to
institutions under the Pensions and Insurance Authority
and, the Securities and Exchange Commission.
YELLOW
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.
Proposed framework will allow authorized representatives in banks and NBFIs to log on to the BoZ website and upload the infor mation. This platform is now expected to be ready by1st quarter 2015.
14
29 | P a g e
Item
Serial
Number
27.
Amount
Revised
Time
Expected Output
Frame for
2014
Gender policies at places 4th Qtr.
of work in financial sector
developed
Progress to Date
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.
Colour Code
YELLOW
Financial
Market 28.
Development
Finalise Strategy and 1st Qtr

Implementation Plan for
SEC
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 4th Qtr

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.
A paper on the development of the money market

reference rate (i.e. The Lusaka Interbank Offer rate) has
been done.
YELLOW
30 | P a g e
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.
Item
Micro-finance
Micro Insurance
31 | P a g e
Serial
Number
Amount
Expected Output
Revised
Time
Frame for
2014
4th Qtr
Progress to Date
Colour Code
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
30.
Strengthen micro-finance
regulations
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
32.
Develop Micro-insurance 4th Qtr

National Strategy
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 18thof October, 2013.
GREEN
Item
Rural Finance
Serial
Number
33.
Amount
Revised
Time
Expected Output
Frame for
2014
Develop Rural Finance 2nd Qtr
Policy/Strategic
(completed
Framework through the in 2013)
Rural Finance Programme
Policy to incorporate the
development
of
a
warehouse
certificate
program.
Progress to Date
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.
Colour Code
GREEN
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.
Development Finance
32 | P a g e
34.
Study
to
consider 2nd Qtr
agricultural supply chain (completed
completed.
in 2013)
Status on this milestone is tied to the one above.
35.
Development
Finance 4th Qtr
regulations submitted to
MoF.
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
GREEN
Item
Serial
Number
36.
Amount
Revised
Time
Expected Output
Frame for
2014
Establish a Development 4th Qtr
Fund
Progress to Date
Colour Code
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.
YELLOW
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.
33 | P a g e
Item
Serial
Number
Study on reform of 37.

financial sector tax
regime in Zambia
Amount
Expected Output
Consultants Identified and
Final Report Produced
Revised
Time
Frame for
2014
1st Qtr
(completed
in 2013)
Progress to Date
In 2011, the FSDP Secretariat commissioned a study to
review the tax regime in the financial sector and its
implications on the sectors 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
Teams 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.
Colour Code
GREEN
The report was presented to a wider stakeholders

workshop on 18 July 2012 for further scrutiny and input
before submitting the updated report for Governments
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.
TOTAL
PERFORMANCE
YELLOW
Note: The initial five-year period for the FSDP Programme approved by Cabinet came to an end on June 30 th, 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.
34 | 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.
35 | 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
Government of Zambia (K3 Million)
Bank of Zambia FSDP Secretariat (K6 Million)
Bank of Zambia FSDP Allowances (K690,800)
Cooperating Partners (K28.3 Million)
Grand Total
36 | P a g e
K Million
3.00
6.00
0.69
28.32
38.01
US $
576,923.08
1,153,846.15
132,846.15
5,446,384.62
7,310,000.00
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.
37 | 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
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
11.
12.
13.
14.
15.
16.
17.
18.
19.
20.
21.
22.
23.
24.
25.
26.
27.
28.
29.
30.
31.
32.
33.
34.
35.
36.
37.
38.
39.
Batoka
Chadiza
Chama
Chavuma**
Chembe**
Chibombo
Chiengi
Chikankata
Chilanga
Chililabombwe
Chilubi**
Chingola
Chinsali
Chipata
Chipili
Chirundu
Chisamba**
Chitambo
Choma
Chongwe
Gwembe**
Ikelenge
Isoka
ItezhiTezhi
Kabompo
Kabwe
Kafue
Kalabo**
Kalomo
Kalulushi
Kaoma
KapiriMposhi
Kaputa
Kasama
Kasempa
Katete
Kawambwa
Kazungula
Kitwe
38 | P a g e
Number of
Bank
Branches
0
1
0
0
0
3
0
0
1
6
0
11
3
10
0
4
0
0
7
1
0
0
1
1
1
10
3
0
2
2
1
2
0
6
1
1
1
1
25
Number of
NSCB
Branches
0
0
1
1
0
0
0
0
0
0
1
0
0
1
0
0
0
0
0
1
0
0
0
0
0
0
0
1
0
0
0
0
1
1
1
0
0
0
2
Zanaco
Express/
Agents
1
0
1
2
1
0
1
0
1
1
1
1
1
3
0
0
1
0
1
3
1
1
1
0
0
4
0
2
2
2
3
1
1
1
1
2
1
1
4
Total
Branches
1
1
2
3
1
3
1
0
2
7
2
11
4
14
0
4
1
0
8
5
1
1
2
1
1
14
3
3
4
4
4
3
2
8
3
3
2
2
31
40.
41.
42.
43.
44.
45.
46.
47.
48.
49.
50.
51.
52.
53.
54.
55.
56.
57.
58.
59.
60.
61.
62.
63.
64.
65.
66.
67.
68.
69.
70.
71.
72.
73.
74.
75.
76.
77.
78.
79.
80.
81.
82.
83.
84.
85.
86.
87.
Limulunga**
Livingstone
Luampa
Luangwa
Luano
Luanshya
Lufwanyama**
Lukulu
Lundazi
Lunga
Lusaka
Luwingu
Maamba
Mambwe
Mansa
Mafinga
Manyinga**
Masaiti
Mazabuka
Mbala
Milenge**
Mitete
Mkushi
Mongu
Monze
Mpika
Mpongwe**
Mporokoso
Mpulungu
Mufulira
Mufumbwe
Mulobezi
Mumbwa
Mungwi**
Mwandi**
Mwansabombwe
Mwense**
Mwinilunga
Nakonde
Nalolo
Namwala
Nchelenge
Ndola
Ngabwe
Nkeyema**
Nsama
Nyimba**
Pemba**
39 | P a g e
0
16
0
1
0
6
0
0
2
0
135
0
0
2
4
0
0
0
7
3
0
0
4
6
3
3
0
0
2
5
1
0
1
0
0
0
1
1
4
0
1
1
32
0
0
0
1
0
0
1
0
0
0
1
1
1
0
0
5
1
0
0
1
0
0
0
0
0
0
0
0
1
0
0
1
1
0
0
0
0
1
0
0
0
0
0
0
0
0
1
2
0
0
0
0
0
1
0
0
1
0
2
1
1
2
0
7
0
0
2
0
1
2
0
0
1
1
0
0
0
0
1
1
0
1
1
1
0
3
1
1
0
2
3
0
0
0
2
3
0
1
0
2
2
1
17
0
2
0
9
2
2
4
0
147
1
0
4
5
1
2
0
7
4
1
0
4
7
3
4
2
1
3
6
2
0
5
1
1
0
3
4
4
0
1
4
37
0
1
0
3
2
88.
89.
90.
91.
92.
93.
94.
95.
96.
97.
98.
99.
100.
101.
102.
103.
104.
105.
NB:
Petauke
Rufunsa
Samfya
Senanga
Serenje
Sesheke
Shangombo**
Shibuyunji**
Shiwangandu
Siavonga
Sikongo
Sinazongwe
Sinda**
Sioma
Solwezi
Vubwi
Zambezi
Zimba
TOTAL
2
0
1
1
1
2
0
0
0
1
0
1
0
0
13
0
0
1
369
1
0
0
0
0
0
0
0
0
0
0
0
0
0
1
0
1
0
32
2
0
1
2
2
1
2
1
0
0
0
0
1
0
0
0
1
0
10815
5
0
2
3
3
3
2
1
0
1
0
1
1
0
14
0
2
1
509
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.
40 | P a g e
8.1
COMMERCIAL BANK BRANCH DISTRIBUTION BY PROVINCE AS AT 31st DECEMBER 2014
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

41 | P a g e
8.2
NON BANK FINANCIAL INSTITUTIONS BRANCH DISTRIBUTION BY PROVINCE AS AT 31st MARCH 2015
NORTHERN
LUAPULA
COPPERBELT
Building societies (8)
Microfinance institutions (24)
Microfinance
institutions (2)
Savings & credit institutions (3)
Bureaux de change (22)
Savings & credit

institutions (4)

NORTH WESTERN
Leasing companies (3)
10
MUCHINGA
10

EASTERN
62
16
141
CENTRAL
9
WESTERN
LUSAKA
22



SOUTHERN
Leasing companies (6)

42 | P a g e
Development finance
institutions (1)
Credit reference bureau (1)
APPENDICES
43 | P a g e
APPENDIX A
ORGANISATIONAL STRUCTURE OF THE FSDP
FRAMEWORK
Financial Sector Development Plan Steering Committee

(Domiciled at the MoF)
FSDP Implementation Committee

& FSDP Secretariat
(Domiciled at the BoZ)
Working Groups*
Market Infrastructure Pillar

FinScope survey
Increasing Competition Pillar
Increasing Access to Finance

Pillar
Legal and Regulatory

Reform Working Group
Market Efficiency and

Group
Increasing
MarketEfficiency
Human Capital
Development
State owned Financial

Institutions
Taxation
Access to Finance Working

Group
Legal reforms
Crisis Management
Financial Intelligence
Unit
Payments Systems Working

Group
Payments Systems
regulatory framework
Accounting and Auditing
Buoyant mobile banking
Financial Education Working

Group
Financial Markets Working

Group
Financial Literacy
National Financial
Literacy Strategy
Enhancement of Market
Knowledge
Expanding Access to savings

and credit
Strengthen Micro-finance and
insurance Industry
Establish institutional
framework for rural finance
Enhance buoyant Secondary

Market in money and Capital
markets
Expand access to
development and housing
finance
Leasing
* Bullet points are examples of some of the activities to be undertaken by the Working Groups
44 | P a g e
APPENDIX B
Members of the FSDP Steering Committee (FSDPSC)
ORGANISATION
1.
Ministry of Finance (MoF)
SECTOR
REPRESENTED
Government/ Chair
POSITION AND NAME

OF MEMBER
Secretary to the Treasury
(Mr Fredson Yamba)
Deputy Governor - Operations
(Dr Bwalya K. E. Ngandu)
Director - Planning
(Mr Mateyo Kaluba)
2.
Bank of Zambia
Central Bank/Vice-Chair
3.
Ministry of Commerce Trade

& Industry
Government/ Commerce
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)
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.
45 | P a g e
APPENDIX C
Members of the FSDP Implementation Committee (FSDPIC)
ORGANISATION
NAME
Bank of Zambia (Chair)
Dr Bwalya K. E. Ngandu
(Deputy Governor Operations)
Ms Ellah Alice Mzyeche Chembe
(Deputy Executive Director)
Zambia National Farmers Union
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 Mrs Kayula Siame

Programme
(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
46 | 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
PROJECT
PROJECT
OFFICER
OFFICER
OFFICER
(MoJ)
(PIA/ SEC)
(BOZ)
(Responsible for Pillar I - Legal, Corporate

Governance and Payments Systems
Issues)
(Responsible for Pillar II:

Macroeconomics, Accounting,
Contractual Savings and H.R Issues)
(Responsible for Pillar III: Banking, NonBanking and Financial & Capital Market
Issues as well as Financial Education)
47 | P a g e
FSDP Secretariat Members
NAME
Mr. Visscher Bbuku
POSITION
Chairperson FSDP Secretariat
(Also BoZ Director Non-Bank Financial Institutions
Supervision)
FSDP Project Team

Mr Musapenda J. Phiri
Project Coordinator FSDP Secretariat
(Attached from the Bank of Zambia)
Mr Marvin Ilunga
Project Officer 1 FSDP Secretariat
(Attached from the Bank of Zambia)
Mrs Kapulwa Kaunda Kafumukache
(Attached from the Ministry of Justice)
Mrs Queen Shachile
(Attached from the Securities & Exchange

Commission)
Ms Mainza Masole
(Attached from the Pensions & Insurance

Authority)
Mr Chitoshi M. Mutabukilangombe
Project Officer 5 FECU
(Attached from the Pensions & Insurance

Authority)
Mr Peter Schuessler
Financial Education Adviser FECU
(Attached from the German Savings

Banks Foundation for International
Cooperation (SBFIC)
Mr. Mubanga Kondolo
(Attached from Bank of Zambia)
48 | P a g e
Intern FECU
APPENDIX D
FSDP II Working Groups
PILLAR
NEW WORKING GROUPS

UNDER PHASE II
PILLAR I:
1. Legal Reforms and
MARKET
INFRASTRUCTURE Working Group
PILLAR II:
INCREASING
COMPETITION
PILLAR III:
ACCESS TO
FINANCE
49 | P a g e
PREVIOUS PHASE I WORKING

GROUPS RATIONALISED
- Legal & Regulatory Infrastructure
- Corporate Governance
2. Payments Systems Working

Group
- Payment Systems
3. Market Efficiency and

Group
- Macroeconomics
- Accounting and Auditing
- Taxation
- Contractual Savings
4. Financial Education
Working Group
- Financial Access
- Human Resources
5. Access to Finance Working

Group
- Banking
- Non-Bank Financial Institutions
6. Financial Markets Working

Group
- Financial Markets
FSDP WORKING GROUPS AND RESPECTIVE CHAIRPERSONS
WORKING GROUP
Market
Efficiency
CHAIRPERSONS
and Mr Titus Kalenga,
Contractual Savings
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
50 | P a g e
APPENDIX E
Working Group
No.
FINANCIAL EDUCATION
1
2
3
4
5
6
7
8
9
1
2
3
4
5
6
7
8
9
1
2
3
4
5
6
7
8
9
10
Bankers Association of Zambia (BAZ)

BoZ (Bank Supervision Department)
Competition & Consumer Protection Commission (CCPC)
Zambia Institute of Bankers
Economics Association of Zambia
Ministry of Finance
Association of Microfinance Institutions in Zambia
FinMark Trust Zambia
Ministry of Commerce Private Sector Development Unit
BoZ (Financial Markets Department)
BAZ
SEC/LuSE
Financial Markets (Dealers) Association of Zambia
Zambia Venture Capital Fund
Association of Pension Fund Managers
MoF
Stock Brokers (Z) Ltd
ZRA
BoZ (Bank Secretariat)
Law Association of Zambia (LAZ)
Ministry of Justice
PIA
SEC
Institute of Directors of Zambia
Association of Bureaux de Change in Zambia
Zambia Private Sector Alliance (Formerly Zambia Business Forum)
MoF
Zambia Institute of Chartered Accountants
MARKET EFFICIENCY
1
2
3
4
5
6
7
8
9
MoF
BoZ (Economics Department)
Rural Finance Programme (RFP)
Economic Association of Zambia
University of Zambia Economics Dept
ZICA
BAZ
Association of Micro finance Institutions in Zambia (AMIZ)
ACCESS TO FINANCE
1
2
3
4
5
6
7
8
9
1
2
3
4
5
6
7
8
9
10
BoZ (Non-Bank Financial Institution Supervision Department)

Ministry of Finance (MoF)
Association of Bureaux de Change in Zambia (ABDCZ)
ABDCZ
Building Societies Association
Development Bank of Zambia
Leasing Association of Zambia
National Savings and Credit Bank
AMIZ
BoZ (Banking Currency and Payment Systems Department)
PIA
Zambia Electronic Clearing House
Lusaka Stock Exchange
Celpay Zambia Limited
BAZ
Zambia Postal Services ( ZAMPOST)
Zamtel/ MTZL
ZICTA (formerly Communications Authority of Zambia)
Airtel (formerly Zain Zambia Limited)
FINANCIAL MARKETS
LEGAL REFORMS &

CORPORATE GOVERNANCE
PAYMENT SYSTEMS
51 | P a g e
Initial List of FSDP Working Group Members (By Institution)
INSTITUTIONAL REPRESENTATION AT FSDP

WORKING GROUP MEETINGS (2010 2014)
13 Dec 2011
15 Nov 2011
18 Oct 2011
27 Sept 2011
16 Aug 2011
19 Jul 2011
30 Jun 2011
17 May 2011
19 Apr 2011
15 Mar 2011
15 Feb 2011
18 Jan 2011
Meeting Date
APPENDIX E.2A - Institutional Representation At FSDP Access To Finance Working Group Meetings
(January December 2011 period)
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
DBZ
BSA
BAZ
Bankers Association of Zambia
RFP
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
52 | P a g e
6 Nov 2012
18 Sept 2012
23 Aug 2012
17 July 2012
30 Jun 2012
15 May 2012
24 Apr 2012
10 April 2012
15 Feb 2012
17 Jan 2012
Meeting Date
APPENDIX E.2B - Institutional Representation At FSDP Access To Finance Working Group Meetings
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
Present at meeting
MOF
Ministry of Finance
MOCTI
AMIZ
NSCB
DBZ
BSA
BAZ
RFP
CCPC
ALCZ
BOZ - BSD
BOZ-NBFISD
SEC
Securities and Exchange Commission
53 | P a g e
10 Dec 2013
19 Nov 2013
15 Oct 2013
20 Aug 2013
16 July 2013
18 June 2013
15 May 2013
16 Apr 2013
21 Feb 2013
22Jan 2013
Meeting Date
APPENDIX E.2C - Institutional Representation At FSDP Access To Finance Working Group Meetings
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
Present at meeting
MOF
Ministry of Finance
MOCTI
AMIZ
NSCB
DBZ
BSA
BAZ
RFP
CCPC
ALCZ
BOZ - BSD
BOZ-NBFISD
SEC
54 | P a g e
25 Nov 2014
21 Oct 2014
23 Sep 2014
26 Aug 2014
29 July 2014
3 June 2014
29 April 2014
25 Feb 2014
21 Jan 2014
Meeting Date
APPENDIX E.2D - Institutional Representation At FSDP Access To Finance Working Group Meetings
(January December2014 period)
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
Present at meeting
MOF
Ministry of Finance
MOCTI
AMIZ
NSCB
DBZ
BSA
BAZ
RFP
CCPC
ALCZ
BOZ - BSD
BOZ-NBFISD
SEC
55 | P a g e
13 Dec 2011
15 Nov 2011
18 Oct 2011
27 Sept 2011
23 Aug 2011
26 Jul 2011
21 Jun 2011
31 May 2011
19 Apr 2011
15 Mar 2011
15 Feb 2011
18 Jan 2011
Meeting
Date
APPENDIX E.3A - Institutional Representation At FSDP Financial Education Working Group Meetings
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
Present at meeting
MOF
Ministry of Finance
MOESVT
Ministry of Education, Science & Vocational Training
JAZ
Junior Achievement Zambia
EAZ
ZIHRM
Zambia Institute of Human Resource Management
ZICA
ZANACO
Zambia National Commercial Bank
BAZ
SEC
PIA
ZIBFS
Zambia Institute of Banking and Financial Services
AMIZ
CEEC
Citizens Economic Empowerment Commission
BOZ - NBFISD
BOZ - BSD
56 | P a g e
4 Dec 2012
6 Nov 2012
18 Sept 2012
23 Aug 2012
24 July 2012
19 Jun 2012
15 May 2012
24 Apr 2012
27 Mar 012
14 Feb 2012
17 Jan 2012
Meeting
Date
APPENDIX E.3B - Institutional Representation At FSDP Financial Education Working Group Meetings
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
Present at meeting
MOF
Ministry of Finance
MOESVT
JAZ
EAZ
ZIHRM
ZICA
ZANACO
BAZ
SEC
PIA
ZIBFS
AMIZ
CEEC
BOZ - NBFISD
BOZ - BSD
57 | P a g e
10 Dec 2013
19 Nov 2013
15 Oct 2013
20 Aug 2013
16 July 2013
18 June 2013
15 May 2013
16 Apr 2013
21 Feb 2013
22 Jan 2013
Meeting
Date
APPENDIX E.3C - Institutional Representation At FSDP Financial Education Working Group Meetings
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
Present at meeting
MOF
Ministry of Finance
MOESVT
JAZ
EAZ
ZIHRM
ZICA
ZANACO
BAZ
SEC
PIA
ZIBFS
AMIZ
CEEC
BOZ - NBFISD
BOZ - BSD
58 | P a g e
27 Oct 2014
16 Sep 2014
29 July 2014
3 June 2014
29 Apr 2014
21 Feb 2014
21 Jan 2014
Meeting
Date
APPENDIX E.3D - Institutional Representation At FSDP Financial Education Working Group Meetings
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
Present at meeting
MOF
Ministry of Finance
MOESVT
JAZ
EAZ
ZIHRM
ZICA
ZANACO
BAZ
SEC
PIA
ZIBFS
AMIZ
CEEC
BOZ - NBFISD
BOZ - BSD
59 | P a g e
24 Nov 2011
26 Oct 2011
4 Oct 2011
31 Aug 2011
25 Jul 2011
29 Jun 2011
01 Jun 2011
28 Apr 2011
16 Mar 2011
19 Jan 2011
Meeting Date
APPENDIX E.4A - Institutional Representation At FSDP Financial Markets Working Group Meetings
Attendance
(%)
ZBTA
100%
SEC/SBZ
40%
BAZ
30%
ZAPF
50%
BoZ-FM
90%
ZRA
80%
LUSE
90%
KEY
Present at meeting
ZBTA
Zambia Bond Traders Association
SEC/SBZ
Securities and Exchange Commission / Stockbrokers Zambia Limited
BAZ
ZAPF
Zambia Association of Pension Funds
BoZ-FM
Bank of Zambia Economics Department
ZRA
LUSE
60 | P a g e
25 Nov 2012
25 Sept 2012
23 Aug 2012
31 May 2012
21 Mar 2012
28 Feb 2012
18 Jan 2012
Meeting Date
APPENDIX E.4B - Institutional Representation At FSDP Financial Markets Working Group Meetings
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
ZBTA
SEC/SBZ
BAZ
ZAPF
BoZ-FM
ZRA
LUSE
BDEZ
Bond and Derivative Exchange Zambia Plc
ACCE
African Carbon Credit Exchange
61 | P a g e
Attendance
4 Dec 2013
20 Nov 2013
28 Aug 2013
25 July 2013
19 June 2013
15 May 2013
21 Feb 2013
23 Jan 2013
Meeting Date
APPENDIX E.4C - Institutional Representation At FSDP Financial Markets Working Group Meetings
(%)
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
ZBTA
SEC/SBZ
BAZ
ZAPF
BoZ-FM
ZRA
LUSE
BDEZ
ACCE
MoF
Ministry of Finance
62 | P a g e
13 Nov 2014
20 Sept 2014
23 April 2014
28 Feb 2014
Meeting Date
APPENDIX E.4D - Institutional Representation At FSDP Financial Markets Working Group Meetings
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
ZBTA
SEC/SBZ
BAZ
ZAPF
BoZ-FM
ZRA
LUSE
BDEZ
ACCE
MoF
Ministry of Finance
63 | P a g e
20 Oct 2011
25 Aug 2011
21 Jul 2011
19 May 2011
21 Apr 2011
24 Mar 2011
17 Feb 2011
24 Jan 2011
Meeting Date
APPENDIX E.5A - Institutional Representation At FSDP Legal Reforms & Corporate Governance Working Group
Meetings (January December 2011 period)
Attendance
(%)
BAZ
87%
BOZ B/SECD
25%
IOD
63%
PIA
75%
SEC
87%
LAZ
63%
ZBF
87%
CEEC
50%
ZICA
37%
KEY
Present at meeting
BAZ
BOZ - B/SECD
Bank of Zambia Bank Secretariat Department
IOD
Institute of Directors
PIA
SEC
LAZ
ZBF
Zambia Business Forum
CEEC
ZICA
64 | P a g e
15 Nov 2012
20 Sep 2012
23 Aug 2012
21 June 2012
10 May 2012
22 Mar 2012
16 Feb 2012
19 Jan 2012
Meeting Date
APPENDIX E.5B - Institutional Representation At FSDP Legal Reforms & Corporate Governance Working Group
Attendance
(%)
BAZ
88%
BOZ B/SECD
38%
IOD
100%
PIA
50%
SEC
75%
LAZ
63%
ZBF
38%
CEEC
25%
ZICA
25%
KEY
Present at meeting
BAZ
BOZ - B/SECD
IOD
PIA
SEC
LAZ
ZBF
CEEC
ZICA
65 | P a g e
22 Nov 2013
19 July 2013
21 June 2013
15 May 2013
19 June 2013
21 Feb 2013
25 Jan 2013
Meeting Date
APPENDIX E.5C - Institutional Representation At FSDP Legal Reforms & Corporate Governance Working Group
Attendance
(%)
BAZ
57%
BOZ B/SECD
57%
IOD
100%
PIA
57%
SEC
57%
LAZ
71%
ZBF
14%
CEEC
29%
ZICA
71%
KEY
Present at meeting
BAZ
BOZ - B/SECD
IOD
PIA
SEC
LAZ
ZBF
CEEC
ZICA
66 | P a g e
Meeting Date
APPENDIX E.5D - Institutional Representation At FSDP Legal Reforms & Corporate Governance Working Group
Meetings16 (January September 2014 period)
Attendance
(%)
BAZ
BOZ B/SECD
IOD
PIA
SEC
LAZ
ZBF
CEEC
ZICA
KEY
Present at meeting
16
BAZ
BOZ - B/SECD
IOD
PIA
SEC
LAZ
ZBF
CEEC
ZICA
Meetings were not held during the 1st quarter of 2014
67 | P a g e
14 Dec 2011
16 Nov 2011
28 Sep 2011
24 Aug 2011
20 Jul 2011
22 June 2011
26 May 2011
20 Apr 2011
23 Mar 2011
16 Feb 2011
26 Jan 2011
Meeting Date
APPENDIX E.6A - Institutional Representation At FSDP Market Efficiency & Contractual Savings Working Group
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
TAG
Micro insurance Technical Advisory Group
SEC
PIA
ZBF
EAZ
BoZ-HR
Bank of Zambia Human Resources Department
BoZ-Econ
ZICA
IAZ
Insurers Association of Zambia
ZAPFM
ZRA
68 | P a g e
21 Nov 2012
19 Sept 2012
23 Aug 2012
26 June 2012
09 May 2012
23 Apr 2012
21 Mar 2012
15 Feb 2012
18 Jan 2012
Meeting Date
APPENDIX E.6B - Institutional Representation At FSDP Market Efficiency & Contractual Savings Working Group
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
TAG
SEC
PIA
ZBF
EAZ
BoZ-HR
BoZ-Econ
ZICA
IAZ
ZAPFM
ZRA
69 | P a g e
20 Nov 2013
30 Oct 2013
28 Aug 2013
17 July 2013
19 June 2013
15 May 2013
24 Apr 2013
21 Feb 2013
18 Jan 2013
Meeting Date
APPENDIX E.6C - Institutional Representation At FSDP Market Efficiency & Contractual Savings Working Group
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
TAG
SEC
PIA
ZBF
EAZ
BoZ-HR
BoZ-Econ
ZICA
IAZ
ZAPFM
ZRA
70 | P a g e
24 Sep 2014
30 July 2014
23 April 2014
26 Feb 2014
22 Jan 2014
Meeting Date
APPENDIX E.6C - Institutional Representation At FSDP Market Efficiency & Contractual Savings Working Group
Meetings (January September 2014 period)
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
TAG
SEC
PIA
ZPA
Zambia Private Sector Alliance
EAZ
BoZ-HR
BoZ-Econ
ZICA
IAZ
ZAPFM
ZRA
71 | P a g e
16 Dec 2011
19 Nov 2011
21 Oct 2011
22 Jul 2011
20 May 2011
27 Apr 2011
18 Mar 2011
18 Feb 2011
21 Jan 2011
Meeting Date
APPENDIX E.7A - Institutional Representation At FSDP Payment Systems Working Group Meetings
Attendance
(%)
BOZ-BCPSD
78%
CELPAY
78%
ZECH
78%
AIRTEL
55%
ZICTA
55%
ZRA
44%
BAZ
44%
ZPS
100%
MTZ
33%
LuSE
78%
KEY
Present at meeting
BOZ-BCPSD
Bank of Zambia Banking, Currency and Payment Systems Department
CELPAY
ZECH
AIRTEL
Airtel Zambia Limited
ZICTA
Zambia Information and Communication Technologies Limited
ZRA
BAZ
ZPS
Zambia Postal Services
MTZ
Mobile transactions Zambia Ltd
LuSE
72 | P a g e
16 Nov 2012
28 Sept 2012
23 Aug 2012
27 July 2012
17 Feb 2012
25 Jan 2012
Meeting Date
APPENDIX E.7B - Institutional Representation At FSDP Payment Systems Working Group Meetings
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
Present at meeting
BOZ-BCPSD
CELPAY
ZECH
AIRTEL
ZICTA
ZRA
BAZ
ZPS
MTZ
LuSE
SEC
Securities Exchange Commission
73 | P a g e
17 Oct 2013
20 June 2013
15 May 2013
18 Apr 2013
17 Feb 2013
25 Jan 2013
Meeting Date
APPENDIX E.7C - Institutional Representation At FSDP Payment Systems Working Group Meetings
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
Present at meeting
BOZ-BCPSD
CELPAY
ZECH
AIRTEL
ZICTA
ZRA
BAZ
ZPS
MTZ
LuSE
SEC
74 | P a g e
18 Dec 2014
20 Nov 2014
29 Sept 2014
31 July 2014
26 June 2014
Meeting Date
APPENDIX E.7D - Institutional Representation At FSDP Payment Systems Working Group Meetings17
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
Present at meeting
17
BOZ-BCPSD
CELPAY
ZECH
AIRTEL
ZICTA
ZRA
BAZ
ZPS
MTZ
LuSE
SEC
Meetings were not held during the 1st quarter of 2014
75 | P a g e
APPENDIX F
76 | P a g e
APPENDIX G
77 | P a g e
APPENDIX H
FSDP PHASE II
ACTIVITY PLANS AND BUDGETS
78 | P a g e

77 - FSDPProgressReportMarch 2015final

Uploaded by

Document Information

Original Title

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

77 - FSDPProgressReportMarch 2015final

Uploaded by

Copyright:

Available Formats

Bank of Zambia

PROGRESS REPORT ON THE IMPLEMENTATION OF THE

PHASE II REPORT FOR THE PERIOD ENDING 31 MARCH 2015

Updated May 2015

LIST OF ACRONYMS AND ABBREVIATIONS

BANKERS ASSOCIATION OF ZAMBIA

BANK FOR INTERNATIONAL SETTLEMENTS

BUILDING SOCIETIES ACT

CREDIT REFERENCE BUREAU

DEVELOPMENT BANK OF ZAMBIA

DIRECT DEBIT AND CREDIT CLEARING

DEVELOPMENT FINANCE INSTITUTION

DEPOSIT PROTECTION SCHEME

FINANCIAL SECTOR DEVELOPMENT PLAN

GOVERNMENT OF THE REPUBLIC OF ZAMBIA

HOUSING FINANCE INSTITUTIONS

INTERNATIONAL MONETARY FUND

ITEM VALUE LIMITS

LUSAKA STOCK EXCHANGE

MINISTRY OF FINANCE & NATIONAL PLANNING

NON BANK FINANCIAL INSTITUTIONS

NATIONAL SAVINGS AND CREDIT BANK

PENSIONS AND INSURANCE AUTHORITY

PRIVATE SECTOR DEVELOPMENT (PSD) PROGRAMME

SOUTHERN AFRICAN DEVELOPMENT COMMUNITY

SECURITIES AND EXCHANGE COMMISSION

VALUE ADDED TAX

ZAMBIA NATIONAL BUILDING SOCIETY

ZAMBIA REVENUE AUTHORITY

ESTABLISHMENT OF INSTITUTIONAL FRAMEWORK FOR THE FSDP ... 2

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

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

ORGANISATIONAL STRUCTURE OF THE FSDP

MEMBERS OF THE FSDP STEERING COMMITTEE

MEMBERS OF THE FSDP IMPLEMENTATION COMMITTEE

LIST OF FSDP WORKING GROUPS & RESPECTIVE

LIST OF WORKING GROUP MEMBERS

PRACTICE NOTE: ANTI MONEY LAUNDERING CUSTOMER

FSDP IMPLEMENTATION MATRIX

PROGRESS REPORT ON THE IMPLEMENTATION OF THE FINANCIAL SECTOR DEVELOPMENT PLAN

Enhancing market infrastructure;

Prioritising, sequencing and costing of the remaining FSDP recommendations for

3.0 ESTABLISHMENT OF INSTITUTIONAL FRAMEWORK

Figure1: FSDP Implementation Structure

FSDP Steering Committee

FSDP Implementation Committee

FSDP Working Groups

Table 1: FSDP Phase II Working Groups

NEW WORKING GROUPS

PREVIOUS PHASE I WORKING

2. Payments Systems Working

3. Market Efficiency and

5. Access to Finance Working

6. Financial Markets Working

Receiving and consolidating Working Group reports;

PROGRESS ON THE ACTIVITIES OF THE FSDP

Recent Project Developments

Government Monitoring and Evaluation Meetings

4.1.4 Financial Education Awareness Programmes

Include the definition of SMEs in the countrys SME policy;

4.1.13 National Strategy on Financial Education

4.1.15 Financial Sector Tax Review Study

Financial Sector Indicators