ZAMB NKER September 2019 www .boz.zm A Bank of Zambia Journal ZAMB NKER March 2019 www .boz.zm A Bank of Zambia Journal Contents

Page 5: Linking Savings Groups to Formal Institutions The BoZ is collaborating with Savenet to design the mode to Views expressed in this publication link savings groups to formal financial service providers. are not necessarily those of the Bank The initiative is expected to scale up financial education campaigns and facilitate technical assistance and of Zambia Management or the Editor development workshops. Head Office Bank of Zambia, Page 6: BoZ Wins Financial Bank Square, Cairo Road Literacy Award P. O. Box 30080 The Bank of Zambia has won the 2019 Alliance for Financial Lusaka, 10101, Zambia Inclusion's (AFI) Maya Declaration Award, a global initiative Tel: + 260 211 399300 for responsible and sustainable financial inclusion that E-mail:[email protected] aims to reduce poverty and ensure financial stability for the Website: www.boz.zm benefit of all.

Page 8: 2020 National Budget Follow us on: Welcome Flicker : Bank of Zambia The Bank of Zambia generally welcomes the 2020 National Twitter : @Bank of Zambia Budget with the theme “Focusing national priorities YouTube : Bank of Zambia towards stimulating the domestic economy”. Overall, the Facebook: @ Bankof Zambia Budget outlines key steps to create fiscal space and improve liquidity in the economy through the dismantling of domestic arrears owed to the suppliers of goods and services to the Government. Mission: To achieve and maintain price Page 12: Zambia at the 2019 AFI and financial system stability to Global Policy Forum The Ministry of Finance has been ratified as a principal foster sustainable economic member of the Alliance for Financial Inclusion (AFI) joining the Bank of Zambia. Further, three officials from the BoZ development. were among 32 graduates of the first-ever Leadership and Diversity Program for Regulators to receive their certificates of accomplishment.

Page 14: ‘We welcome constitutional refinement' The Central Bank welcomes the latest effort by the Government of Zambia to refine the Constitution of Zambia (Amendment) Act No. 2 of 2016 through the Constitution of Zambia (Amendment) Bill No. 10 of 2019, which is aimed at addressing problematic areas in the law, especially conflicting provisions and general flaws.

Page 17: World Bank Initiative to Boost Women-Led Businesses Zambia has been identified as one of the participating countries in the World Bank Women Entrepreneurs Finance Initiative (We-Fi). The Zambian pilot is aimed at supporting the growth of women-led SMEs in the country by catalysing access to finance and capacity building of women entrepreneurs.

2 ZAMBANKER September 2019 edged up in the first half of 2019, reflecting the upward adjustment in the Monetary Policy focuses Policy Rate in May 2019, high yield rates on Government securities and tight liquidity conditions. Yield rates on on containing Government securities trended upwards amidst subdued demand and tight liquidity conditions. inflationary pressures Credit growth to the private sector slowed down, reflecting tight credit conditions in the market. By Zambanker Reporter Meanwhile, global economic activity is The Bank of Zambia's implementation of monetary policy will reported to have remained weak in the focus on bringing inflation back to the 6-8% target range in the first half of 2019, on account of the medium-term. In its June-December 2019 Monetary Policy continued slowdown in investment and Statement, the Bank notes that inflationary pressures continued consumer demand, low business spending amid high policy uncertainty to build up, resulting in inflation exceeding the upper bound of and trade tensions. the target range in May and June. Prospects for global economic growth in 2019 and 2020 are lower than earlier his was largely due to higher range over the medium-term. In the anticipated due to weaker momentum in food prices and the pass- second half of the year, inflation is advanced countries, intensifying US- t h r o u g h f r o m t h e projected to remain above the target China trade tensions, continued depreciation of the Kwacha range, mainly on account of the persistent uncertainties related to Brexit and rising against the US dollar. rise in food prices. geopolitical tensions in the Middle East. IncrTeased demand for foreign exchange Risks to inflation are skewed to the Zambia recorded a trade surplus in by the energy sector, a stronger US dollar upside and these include lower electricity the first half of 2019 compared to a deficit and negative market sentiments arising generation, higher than programmed in the second half of 2018, due to a larger from credit rating downgrades accounted fiscal deficits and elevated external debt contraction in imports than exports. for the depreciation of the Kwacha. service payments. The decline in imports was broad- To contain inflationary pressures, the In this regard, monetary policy will based, while the fall in export earnings Policy Rate was adjusted upwards in May focus on bringing inflation back to the largely reflected the decline in copper by 50 basis points to 10.25% from 9.75% target range in the medium-term. export volumes and realised prices. as inflation was projected to remain As regards market interest rates, the In addition, indicators of domestic above the upper bound of the 6-8% target Statement notes that these generally economic activity point to reduced growth in the first half of 2019. Real GDP ‘In addition, broadening the production growth for the first quarter of 2019 is estimated at 2.6% compared to 2.7% in and export base is key in not only the corresponding period in 2018. For the year as a whole, real GDP is building the country's resilience to projected to slow down to around 2.0% in 2019, before rising to 3.0% in 2020. shocks, but also keeping inflation low The adverse effects of uneven rainfall in the country that have dampened and maintaining overall macroeconomic agricultural production and hydro- electricity generation, domestic liquidity stability’. challenges and softening of global demand are the major factors weighing negatively on growth prospects. To ensure overall macroeconomic stability and sustainable growth, the Statement states that the implementation of fiscal consolidation measures to address higher than programmed fiscal deficits, elevated debt and debt service levels, high domestic arrears and liquidity challenges is urgently required to support monetary policy to ensure overall macroeconomic stability. I n a d d i t i o n , b ro a d e n i n g t h e production and export base is key in not only building the country's resilience to shocks, but also keeping inflation low and maintaining overall macroeconomic stability.

September 2019 ZAMBANKER 3 News in Brief

BoZ to establish Electronic Trading The change in weather patterns may become a more frequent feature going forward, and therefore country Platform needs to position itself to respond to this change. The Bank of Zambia is working on establishing an Electronic Trading Platform (ETP) to provide for electronic trading of securities as opposed to the current Customer Complaints Directives manual trading. An electronic trading platform (ETP) is a The Bank of Zambia will issue directives on consumer facility which provides electronic trading of securities as complaints handling resolution for financial service opposed to manual trading. It allows trades to be providers. The directives will require Financial Service submitted and transmitted from one computer to another Providers (FSPs) to establish frameworks within their for automatic settlement. structures to deal with consumer complaints. Currently the trading of Government bonds is manual, where investors submit physical documents to the Lusaka Cyber Security - Digital Financial Services Securities Exchange and the Bank of Zambia. This process The Bank of Zambia has called on all banks and the has been inefficient and has contributed to the cost of Bankers Association of Zambia to develop and establish doing business. robust cyber security frameworks/mechanisms and The impact of introducing the ETP is that it will enhance conduct educational programs for customers to mitigate efficiency and therefore encourage investors to purchase cybercrime and protect customer funds and the financial Government bonds. system as a whole. The Bank of Zambia is also pursuing an online Government Securities Application Project targeted towards World Savings Day & Financial Literacy increasing the participation of investors within the country and abroad. The project will support the Bank's Awards financial inclusion strategic objective which aims to The World Savings Day and Financial Literacy Awards address and provide solutions to the constraints that deter will be held on 31st October 2019 at the Intercontinental people from participating in the financial sector. This Hotel in Lusaka. initiative will assist in making it easier for investors outside the cities of Lusaka and Ndola as well as those in Kafulafuta Dam Project Tour the diaspora to submit the necessary applications Director Regional Office, Mr Visscher Bbuku was in Masaiti required in the process of investing in Government District on a familiarisation tour of the Kafulafuta Dam securities. Under the online Government Securities Project in an effort to appreciate the developmental Application system, investors will have the option of using projects and economic impact the project will bring to a personal computer or a mobile phone to make their Masaiti and the Copperbelt Province as a whole. He was investment. accompanied by Senior Economist, Mr Jonathan Misapa, Manager Security, Mr Kedrick Zombe and Mr Lombe Impact of drought on inflation and Mulanda. output Climate change in recent years has resulted in more Savings outreach programme frequent and extreme weather patterns, as well as Senior Economist, Mr Jonathan Misapa together with episodes of prolonged dry spells and droughts in Zambia. Manager Vaults, Mr Joseph Kawaya hosted discussions The most recent being the 2018/19 farming season. This with over 40 participants at the Kafubu Valley Main has resulted in lower agricultural output with maize District office related to Savings. harvest declining by 16%. Consequently, prices of maize meal have been rising Update on the operations of the Credit sharply, which is expected to feed into inflation. In Reference Bureau addition, low water levels have had an adverse impact on Credit Reference Bureau trading as TransUnion Zambia electricity generation that prompted ZESCO to ration recently launched an Application Programme Interface electricity supply. This is likely to affect output in the (API) that provides for real-time credit data submission productive sectors of the economy and ultimately further and real-time credit data access by credit providers. The slowdown economic growth. API will replace the current system of submitting data to Even with improved rainfall in the next farming season, the credit reference system through the secure file growth in the sector will depend on whether farmers will transfer protocol. be helped to access farming inputs in light of losses made The benefits that are expected to accrue to credit during the last season. providers through the use of the API include timely Drought presents a major risk to agriculture in Zambia update of consumer records and elimination of errors and therefore a potential threat to the financial sector, as that arise from human intervention during data the agriculture sector is largely rain-fed. Agriculture extraction and upload. So far, nine, credit providers have accounts for around 17% of commercial bank loans to the signed up and are using the new solution for credit data private sector. However, agriculture also has the highest upload and search. default rate.

4 ZAMBANKER September 2019 providers. Earlier, Ms Tamba clarified that the Bank of Zambia does not license, regulate and supervise Savings and Village Banking Groups because they are informal financial services. Speaking during the Kwacha Good Morning Zambia programme on Zambia National Broadcasting Network, Ms Tamba explained that the Central Bank welcomes the initiative of savings and village banking groups as a vehicle for increasing financial inclusion and also recognises the importance of linking the groups to formal financial services. Savenet is a non-governmental organisation established to support the Ms Freda Tamba development of Community Based Financial Institutions (CBFI's) such as Savings groups. The overall goal of SaveNet is to promote the financial inclusion of economically Linking Savings Groups marginalised communities through scaling up of innovation and best practices that arise out of promoter intervention. SaveNet intends to achieve this through to Formal Institutions the creation and nurturing of network By Zambanker Reporter structures at local, regional and national Director Non-Bank Financial Institutions Supervision levels that would enable sharing and dissemination of information emanating Department Ms Freda Tamba has disclosed that BoZ is from different players promoting various collaborating with Savenet to design a mode to link savings aspects and innovations of Savings Groups. groups to formal financial service providers. The initiative is Savenet works with Savings Groups to expected to scale up financial education campaigns and facilitate improve their governance structures and build their capacity in terms of financial technical assistance and development workshops for Financial literacy. Savenet also collects information on Service Providers (FSPs). the numbers of savings groups, geographic location, levels of income, use of credit etc. This partnership will also enable started to design products specifically for Savings groups are closed self selected information sharing between the Bank of savings and village banking groups, a move user groups that pool savings which are Zambia and SaveNet which becomes key for which will expedite their transition from the used to offer credit within the group. The monitoring and evaluating the impact of informal into the formal sector. Statistics as interest earned is then shared by the interventions to improve the governance at March 2019 show that the number of members in proportion to their respective and financial literacy of the groups. savings groups was around 20,000 with savings. In a communique to the Zambanker, estimated savings of K500 million and over S av i n g s g ro u p s we re i n i t i a l ly Director Tamba explained that a number of 600,000 members. implemented in economically challenged formal financial service providers, including These are potential funds that can be environments in order to help those that mobile money operators, have already harnessed to provide a cheaper source of could not get loans from traditional financial recognised this potential market and have funding for formal financial service institutions. While this was envisaged to cater for low income underserved populations, the practice has expanded into urban areas, also catering to formally employed medium to high income earners. This is a demonstration of the high appetite amongst many people, particularly, women to save money and have access to credit.

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September 2019 ZAMBANKER 5 Deputy Governor-Administration Dr Tukiya Kankasa-Mabula receiving the award BoZ Wins Financial Inclusion Award

By Zambanker Reporter The Bank of Zambia has won the 2019 Alliance for Financial Inclusion's (AFI) Maya Declaration Award, a global initiative for responsible and sustainable financial inclusion that aims to reduce poverty and ensure financial stability for the benefit of all. It is the first global and measurable set of financial inclusion commitments by developing and emerging economies.

The Maya Declaration Awards partners who are committed to financial inclusion gender gap. Further, member recognises an AFI member institution inclusion across the world. This year's countries set for themselves the that has clearly defined and measurable GPF included a wide range of topics such audacious goal of halving the financial financial inclusion targets and has as leadership and diversity, digital inclusion gender gap in each AFI demonstrated the most dedication in financial services, inclusive green jurisdiction by 2021. In addition, the network to reporting its targets, finance, SME finance, opportunities for member countries have made gender timelines and progress on the AFI Data saving groups and regulatory inclusive finance commitments in other portal. The annual event is used, partly, frameworks that harness the potential AFI policy documents such as Sharm El to recognise and honour those who of digital platforms and fintechs Sheikh accord and the Sochi accord, now achieve outstanding results in driving ecosystems, among others. also being re-enforced by the Kigali the financial inclusion efforts globally Meanwhile the Bank of Zambia, statement. and also as a financial inclusion policy representing Zambia, has been Speaking during the first ever sharing platform. appointed/certified as a Gender recognition and certification of AFI For the past six years, AFI has Inclusion Ambassador, amongst other Gender Inclusion Ambassadors recognised member institutions and countries. This is in recognition of its ceremony in Kigali, Deputy Governor- individuals who have excelled in efforts in closing the gender gap and Administration Dr Tukiya Kankasa- advocacy of financial inclusion with a fulfilling the commitments made under Mabula urged the ambassadors and all special evening at the Global Policy the Denarau Action Plan, the AFI AFI members to prioritise the Forum (GPF). This year, the 2019 AFI network's commitment to gender and leadership and diversity programme Awards took place from 11th to 13th women's financial inclusion. The that has been established to implement September 2019 at the Kigali ambassadors will advocate for gender action point no.10 of the Denarau Action Convention Centre, Rwanda and inclusive finance within the AFI Plan. The action point requires AFI honoured those who spent the last 12 network, at national level and at the members to drive greater gender m o n t h s d e m o n s t ra t i n g s t ro n g global level. diversity within their member leadership, supporting peer learning The Denarau Action Plan which was institutions, initiatives and strategies. services and standing up on the national adopted at the 2016 GPF identifies She explained that the leadership and global stage in support of AFI and its measures that members of AFI can take and diversity programme being mission. to increase the number of women with delivered in conjunction with women's The GPF brings together over 70 AFI access to quality and affordable world banking and the said Business member countries and cooperating financial services and close the financial School of Oxford University, will enable

6 ZAMBANKER September 2019 AFI members to build a pipeline of women leaders to facilitate diversity. She added that almost one billion women were still excluded from the formal financial system. According to the 2017 Global Findex database, the gender gap for emerging and developing countries, which include AFI member countries, has remained sticky at 9% since 2011. However, Dr Kankasa- Mabula explained that there is a growing b o d y o f k n o w l e d g e t h a t h a s demonstrated that gender diverse teams lead to better performance, increased productivity and innovation. The Gender Inclusive Finance (GIF) Committee was established in 2016. The work that the Committee has undertaken since then, has enabled member countries to see huge changes and developments in gender inclusive finance policy and regulation within the network. The gender work-stream was enthusiastically embraced by all the AFI working groups and other organs resulting in the production of many knowledge products and tools. “As chairperson of the GIF committee, I am proud to see the progress being made by member institutions to close the gender gap in access to finance. When the Denarau Action Plan was first adopted, there w e r e 1 6 M a y a D e c l a r a t i o n and at the global level. There will be an in contemplation. Evidence abounds commitments. There are now 32 amplification of voices and efforts. In that gender neutral is not good enough. commitments and this number is this regard, it is very important that we Implementation of policies at the increasing yearly. should have the participation of both national level is particularly important,” It is important for us to recognise and men and women. We acknowledge that she said. celebrate what has been achieved. global power still resides in men. Men, She said she was hopeful that as However, we need to do more to therefore, have a great role to play to more and more member countries meet accelerate the pace at which we are move the needle. What will need to be the threshold criteria to become gender bridging the financial inclusion gender done, is to always apply a gender lens to inclusion ambassadors, more members gap. all our initiatives and actions. We must will be recognised and certified as This is especially with regard to in- always have women's financial inclusion ambassadors. country implementation as well as innovations,” she said. Dr Kankasa-Mabula added that to recognise the efforts by member countries leading the network in closing the gender gap and fulfilling the commitments made under the Denarau Action Plan, the GIF committee at its meeting held on 22nd august 2019, approved the appointment of gender inclusive ambassadors. “We appreciate this milestone of the appointment of gender inclusive ambassadors. This is because of the multiplier effect that this initiative will have towards bridging the gender gap in the AFI network. Ambassadors will advocate for gender inclusive finance within the AFI network, at national level

September 2019 ZAMBANKER 7 2020 National Budget Welcome

By Zambanker Reporter The Bank of Zambia welcomes the 2020 National Budget with the theme “Focusing national priorities towards stimulating the domestic economy”. Overall, the Budget outlines key steps to create fiscal space and improve liquidity in the economy through the dismantling of domestic arrears owed to the suppliers of goods and services to the Government.

n his submission on the 2020 National focused on achieving and maintaining concessional borrowing to achieve Budget to the Parliamentary Expanded inflation within the target range of 6-8 Government financing requirements at the Budget Committee: Estimates of Revenue percent over the medium term. To do this, the lowest possible cost. and Expenditure for the year ending 31st Bank of Zambia uses the forward-looking iii) The Macroeconomic Objectives, December, 2020, Bank of Zambia monetary policy framework, anchored on the Policies and Strategies GIovernor, Dr Denny Kalyalya said the Policy Rate as the key signal of the monetary The macroeconomic targets set out in the commitment to address external debt service policy stance. The Policy Rate is intended to 2020 Budget are appropriate under the the debt stock and to outline and implement influence and stabilise the overnight prevailing economic environment. These practical steps to achieve this is central to the interbank rate, which, in turn, is expected to goals include: efforts to restore macroeconomic stability. He affect lending rates and ultimately inflation. a) Achieving a real GDP growth rate of at added that growth is likely to remain low in Market based instruments, such as, open least 3% the immediate term, largely reflecting market operations, are utilised to maintain Growth is projected to pick up to 3.0% in 2020 adverse weather shocks, fiscal imbalances, the interbank rate within the corridor of +/- 1 from about 2.0% in 2019 premised on the liquidity challenges and reduced mining percentage point around the set Policy Rate. expected recovery in agriculture as weather output. Thus, the proposed measures in the conditions are expected to improve. In 2020 Budget are critical towards restoring ii) The Debt Management Policy addition, output in other sectors is expected fiscal fitness and reinvigorating growth in the The 2020 Budget prioritises prudent debt to rise, if electricity generation improves. medium-term, in line with the Seventh management to ensure debt sustainability by Unlocking liquidity to the productive sector, National Development Plan (7NDP), the slowing down debt contraction, postponing by clearing arrears owed to domestic Economic Stabilisation and Growth or cancelling some pipeline loans, ceasing the suppliers of goods and services, is another Programme (ESGP) and the Vision 2030. issuance of guarantees and refinancing key factor to stimulating economic activity. In The Governor explained that the 2020 Budget existing loans. addition, keeping the fiscal deficit within should also be understood in the context of For public debt to be maintained at programmed levels as well as containing the other policy measures the Government has sustainable levels, these measures should rise in debt and debt service promotes the announced in the past, such as, the reforms in also be well anchored in the 2020-2022 flow of liquidity to the productive sector, the energy and agriculture sectors, which Medium Term Debt Strategy. which is critical for realising higher growth when implemented will further support fiscal This is necessary to create fiscal space and rates. However, weak global growth and consolidation and economic growth. At the restore macroeconomic stability so as to unfavourable weather conditions continue to heart of all this is effective implementation of enable Government to effectively respond to pose significant downside risks to domestic what has been committed. shocks and foster economic development. It economic growth prospects. s h o u l d b e n o t e d t h a t r e s t o r i n g COMMENTS ON SPECIFIC ISSUES macroeconomic stability, characterised by a b) Achieving and maintaining inflation i) The Monetary Policy Framework stable exchange rate, low fiscal deficit, and within the target range of 6-8% anchored on the Policy Rate low nominal yield rates on Government The Bank of Zambia is committed to achieving As outlined in the Budget, and in the Bank's securities, also contributes to improving debt and maintaining inflation within the target previous appearances before this and other sustainability. External financing of the range of 6-8%. In May 2019 inflation, at 8.1%, Committees of Parliament, monetary policy is deficit, should focus on maximising breached the upper target bound of 8%. Since

Governor making a presentation at Parliament

8 ZAMBANKER September 2019 then inflation has edged up further to 10.5% in October 2019, largely driven by the rise in food prices. Based on the forward-looking monetary policy framework, the Bank will continue working towards bringing inflation back to the target range. However, there are upside risks to inflation that include supply constraints due to adverse weather conditions, higher than programmed fiscal deficits and elevated external debt service payments. As indicated in the May and August Monetary Policy Statements, the Bank of Zambia may adjust the Policy Rate upwards, if Bank of Zambia delegation at Parliament it is judged that inflation will persist to be outside the policy target range over the next Government to 1.1% of GDP from 1.4% of GDP the rise in inflationary pressures in 2019, eight quarters. target for 2019 is positive. This is expected to mainly attributed to higher food prices on Given the current economic circumstances, moderate crowding out effects and support account of supply constraints due to adverse the Monetary Policy Committee will also take growth of credit to the private sector and weather conditions and the pass-through into account the impact of the monetary ultimately help spur economic activity. from the depreciation of the Kwacha against policy stance on the financial sector and the US dollar, the Bank of Zambia began to economic growth. e) Increasing domestic revenue to at least implement measures to bring inflation back

22% of GDP to the target range of 6-8% in the medium- c) Increasing International Reserves to at Increasing domestic revenue to 22.0% of GDP term. least 2.5 months of import cover is positive, but will be challenging. Domestic Thus, in May, the Policy Rate was raised by 50 As you are aware, international reserves have revenues have averaged 18.2% over the past basis points to 10.25% from 9.75%. The been on a declining trend largely due to high three years. We note that the share of non-tax effectiveness of monetary policy will, to a external debt service payments. The decline revenue has increased to 16.7% from 10.5% large extent, depend on how successful has, however, been moderated in the recent in 2019 and there is reliance on fees and fines Government will be in implementing fiscal past owing to the Bank of Zambia purchases as well as exceptional revenue, which measures outlined in the 2020 Budget and from the market and direct receipt of mineral together amount to K12.8 billion. beyond. royalties in foreign currency from the mining The proposed measures to enhance revenue companies. Attaining the target of 2.5 months collection by rolling out electronic fiscal vi) Implications of Maintaining Value of import cover requires an improvement in devices, accelerating the implementation of Added Tax (VAT) and Measures put in external financial flows (e.g. project/donor land titling, and revaluation of properties are place to Strengthen Enforcement flows) as well as continued increase in market critical. There is therefore need to step up The decision to maintain VAT has removed the purchases by the Bank. enforcement to improve tax compliance as uncertainty which the previously announced In the year to August 2019, total Bank of well as invest in human capacity development re-introduction of sales tax had generated. Zambia purchases of foreign exchange and technology to support revenue collection. The decision to address the compliance and amounted to US $682.9 million (i.e. from administrative challenges associated with market purchases and direct receipts from iv) The Electronic Trading Platform and its VAT is welcome and will require the support mineral royalty tax payments). This is a of all. Upgrading the Tax online system for marked improvement over the purchases in Impact domestic taxes and interfacing it with the 2017 and 2018 of US $402.6 million and US An electronic trading platform (ETP) is a customs system as well as upscaling the use of $480.9 million, respectively. However, facility which provides electronic trading of Electronic Fiscal Devices (EFDs) could help strengthening of Zambia's external position securities as opposed to manual trading. It improve VAT collections. This will require, will require a significant reduction in debt allows trades to be submitted and among others, development of a well- s e r v i c e p a y m e n t s t h r o u g h t h e transmitted from one computer to another for articulated plan indicating timelines on how implementation of the strategies already automatic settlement. Currently, trading of various initiatives will be implemented. announced by the Government. It will also Government bonds is manual, where Implementing the electronic system requires require Zambia to increase exports, especially investors submit physical documents to the appropriate ICT infrastructure. Prioritising those of non-traditional commodities. Lusaka Securities Exchange Plc and the Bank of Zambia. This process has been inefficient the introduction of EFDs is critical to bringing and has contributed to the high cost of doing on board the final consumers who ultimately d) Reducing the fiscal deficit to 5.5% of business. pay VAT. GDP The introduction of the ETP is intended to The reduction in the fiscal deficit target to enhance efficiency, price discovery, and Conclusion 5.5% of GDP, on a cash basis, from the 2019 liquidity, thereby encouraging investors to The Bank of Zambia is committed to playing target of 6.5% is welcome. Achieving this actively participate in the Government its role to ensure that inflation and foreign target will require implementation of tight securities market. When the process of reserves targets are achieved, and that the expenditure controls, halting the trading is efficient and attractive for the financial system remains stable. The Bank accumulation of domestic arrears, and general public, the cost of raising resources welcomes measures outlined in the 2020 strengthening revenue collection. for Government is expected to be lower. Budget aimed at creating fiscal space, The proposed external financing of K27.5 ensuring debt sustainability, and improving billion suggests a further increase in external v) The Monetary Policy Measures put in liquidity availability in the economy through debt, as existing loans are drawn down, and d i s m a n t l i n g o f d o m e s t i c a r re a r s . hence elevated debt service payments in place to foster Price Stability Implementation of tight expenditure control future. This remains a threat to the To achieve and maintain inflation within the measures and halting the accumulation of attainment of the international reserves target range of 6-8%, the Bank will continue arrears will remain critical to restoring fiscal target and has implications on debt to rely on the forward-looking monetary fitness and reinvigorating economic growth sustainability. policy framework anchored on the Policy Rate currently and in the medium-term. The reduction of domestic financing of as a key signal for monetary policy. Following

September 2019 ZAMBANKER 9 Harnessing Innovation for Inclusive Finance By Zambanker Reporter Deputy Governor-Administration, Dr Tukiya Kankasa-Mabula, has said a succession of Information Technology and Communication breakthroughs present significant opportunities to scale up financial inclusion to an extraordinary level.

Speaking during a panel discussion on the context of the eCommerce platforms and implement the e-Voucher system and have 'Access to Finance' at the first regional regular physical trading activities of SMEs, point-of-sale (PoS) devices for payments to summit on the Women Entrepreneurs digital financial services provide the be part of the Government-led agricultural Finance Initiative (WE-FI) in Abidjan, Dr following benefits: mobile money enables programmes such as the Farmers Input Kankasa-Mabula explained that the women-SMEs to transact conveniently and Support Programme (FISP) as well as to be emergence of new technologies is providing withdraw money from agents that are in connected to e-commerce platforms which a promising vehicle for economic close proximity to their businesses. This link SMEs with suppliers of inputs and empowerment by bridging the gap in the helps them devote more time to their enables them to make bulk online purchases uptake of financial services between men business by reducing the time spent going to without having to travel physically from one and women thereby bringing a long-term the bank and avoiding long queues. place to another area of benefit. societal change for the financially Further, safe and timely receipts from Financial education also enables SMEs to excluded/underserved. customers and payments to suppliers via list their products on online shops and find The Deputy Governor added that the real time gross settlement (RTGS), online customers. types of technologies and technological banking on eCommerce platforms and point- This leads to an increase and diversity in infrastructure that are useful for small-and- of-sale devices are guaranteed. Access to the number of customers by expanding the medium enterprises (SMEs) to access credit in form of working capital through DFS outreach of trading activities to national, markets (for finance, inputs from suppliers, enables women to purchase inputs and other cross-border and international geographic and customers) include: mobile phone business supplies. regions. As a consequence, SMEs can ownership which is beneficial to women This is helpful in overcoming challenges increase their sales volumes and revenues. In SMEs when they understand the potential of of access to capital and fosters growth. addition, increased financial literacy allows t h e d e v i c e f o r u s e i n g e n e r a l Access to formal credit (e.g. Kongola) also for the provision of new linkages in the communications, trading activities, mobile enables women-SMEs to replace credit value-chain through e-commerce platforms. money and access to credit; electronic obtained from informal sources (e.g. For example, linkages between SMEs, online- commerce (eCommerce) platforms for Chilimba) which may sometimes have more trading platforms and transport companies trading and digital financial services for stringent rules or may be insufficient to meet to courier deliveries between suppliers and receiving and making payments. Digital the credit needs for the business. customers. This in turn reduces operational financial services include internet banking, Dr Kankasa-Mabula noted that financial costs for SMES when transport costs are e-money, e-wallets and mobile banking; education is integral for advancing digital borne by customers. social media for engaging with customers financial literacy amongst women. For “Knowledge of usage of e-wallets for and electronic devices and hardware such as i n s t a n c e , w o m e n - commercial trading transactions is relevant ownership of mobile phones and point of S M E s have to for women-SMEs. For example, eMsika is an sale machines. online agricultural trading platform in “Women-SMEs may be incentivised to Zambia. The company has found that women use these technologies to be innovative and are more likely than men to complete online current with shifting trends towards online trading after they are given explanations on business and eCommerce; to compliment or how the system works,” she explained. replace existing physical trading operations Other advantages of financial education and to reduce time and save advertising costs are that it leads to minimised costs for finding relevant customers. eCommerce, associated with transport expenses for social media and trading platforms can also purchasing inputs from suppliers and be used to easily match women-SMEs to delivery of products to customers as specific customer-markets that are transport services can be provided by third interested in their products. parties on the trading platforms of These are enablers in facilitating market agricultural value chains. access for women-SMEs when they are It also leads to improved embedded into their existing trading profitability by increasing the activities,” she said. volume of traded goods and She stated that women extend revenue; reducing costs and the usage of Digital Financial making trade efficient and Services (DFS) to the payment of provides the convenience utilities, school fees, and other of multi-tasking business household expenses after they a n d h o u s e h o l d become accustomed to using responsibilities from eCommerce and e-wallets for Dr Tukiya Kankasa-Mabula one location. trading transactions. Within

10 ZAMBANKER September 2019 BoZ and commercial bank staff at the training in ICT training centre e-BoP Monitoring Trainings Intensified By Fred Mushimba The Bank of Zambia through the Balance of Payments Monitoring Division, successfully conducted User Training workshops on e-BoP monitoring to frontline staff of commercial banks during the months of June, August and September 2019 in Lusaka, Copper belt and Southern provinces, respectively in order to equip commercial banks staff with necessary skills required to manage the electronic BoP monitoring module.

The first User Training was conducted on payments (BoP) transactions called Money Service Providers (FSPs) are required to the 7th, 10th and 11th June 2019 for staff based Remittance and Receipt Return (MRRR) for submit these reports in a manner provided in Lusaka at the Bank of Zambia head office monitoring international transactions by the Bank. To this effect, clients conducting in Lusaka. conducted through financial service cross-border financial transactions should This is part of the sensitisation programme providers. This is mainly with the view to have TPINs and provide accurate and full aimed at allowing commercial bank staff to promote the efficiency of the foreign description of the payments and receipts i.e. appreciate the module and promote wider exchange system, improving policy the Purpose of the transaction, the Sector of understanding of the central bank's reasons formulation and economic management, as the entity (person transacting), and the for collecting cross-border payments data. well as improvement of the BoP statistics. Destination country. While cross-border payments reporting Under this framework, all commercial banks The electronic monitoring system has since may be centralised at head office for some will be required to submit their daily been developed and installed at the BOZ and commercial banks, it is important that international financial transaction reports connectivity established with all FSPs relevant staff at branches undergo the to the Bank of Zambia through an electronic (commercial banks) operating in Zambia. training, as these are the ones in regular monitoring system. These include payments Further, the electronic monitoring went Live contact with clients. made to foreign parties by Zambian on a pilot basis at the end of March 2019 and In line with the Bank of Zambia Amendment residents as well as the payments received 13 commercial banks have been reporting to Act No. 1 of 2013, the Bank has designed a by Zambian residents from foreign parties the BoZ in the pilot phase as at end–August framework for monitoring balance of irrespective of their value. All Financial 2019.

September 2019 ZAMBANKER 11 The three officials are: Deputy Governor Administration Dr. Tukiya Kankasa-Mabula, Assistant Director, Examinations & Surveillance in the Bank Supervision Ms. Lyness Mambo, Zambia at the and Assistant Director, Payment Systems Mrs. Mirriam Kamuhuza. The nine-month program – jointly run by Women's World Banking and AFI – supports financial regulators in 2019 AFI Global developing policies that narrow the financial inclusion gender gap and build more gender-diverse teams and leaders within financial institutions. Meanwhile, Senior Analyst – Consumer Protection and Market Policy Forum Conduct Mr. Moses Musantu has been elected as Co – Chairperson for the By Moses Munsantu Consumer Empowerment and The Ministry of Finance has been ratified as a Market Conduct Working Group, principal member of the Alliance for Financial while Assistant Director NBFIS Ms. Mankolo Beyani has been maintained Inclusion (AFI) joining the Bank of Zambia. as Chairperson for the Small and Further, three officials from the BoZ were among Medium Enterprises Working Group. 32 graduates of the first-ever Leadership and The 2019 GPF was attended by 912 Diversity Program for Regulators to receive their registered participants, of which certificates of accomplishment. more than 450 came from 69 member institutions in 59 countries.

12 ZAMBANKER September 2019 Government Securities Operations for 3rd Quarter 2019 Mr Finzi Mwezani

By Finzi Mwezani Figure 1: Treasury bill Auction Results, Q3 2019 G ove r n m e n t s e c u r i t i e s a re d e b t Q3 Tbill Results per auction instruments issued by the Government of Last Q2 auction 13/2019 14/2019 15/2019 16/2019 17/2019 18/2019 19/2019 20/2019 Zambia through the Bank of Zambia. These 26-Sep- instruments are in the form of Treasury bills 20-Jun-19 4-Jul-19 18-Jul-19 1-Aug-19 15-Aug-19 29-Aug-19 12-Sep-19 19 and Government bonds. Treasury bills, 91 Days 16.5002 16.5 002 16.5002 16.5002 16.5002 16.5002 16.5 002 16.5002 commonly known as Tbills, are short-term 182 Days 16.5001 16.0 000 16.0000 16.0000 19.0000 19.0 000 19.0000 19.0000 debt instruments issued by the Government 273 Days 25.2501 25.2501 25.2501 26.0001 26.0001 26.0001 26.5001 26.5001 of Zambia with maturity periods of upto one 364 Days 26.5000 26.5000 26.5000 26.7500 27.5001 27.5001 27.5001 27.5001

(1) year and are strictly discount Weighted instruments with no coupon payments Average during their life. The Government of Zambia Y iel d Rate (WAYR) 25.1238 22.2021 26.2981 25.8164 25.1 488 25.8735 25.9683 25.4603 issues four (4) Tbill tenors namely 91 Days, 182 Days, 273 Days and 364 Days. Government bonds are debt instruments Figure 2: Treasury bill Yield Rate Movements, Q3 2019 issued by the Government of Zambia with maturities longer than one (1) year. 3 0.0000 Government bonds can be issued at a discount, at par or at a premium depending on the difference between the yield rate and 25.0000 coupon rate at the point of issue. If a bond is issued at a yield rate higher than its coupon 20.0000 rate, then it will be issued at a discount. On the other hand, if the coupon rate is higher that the yield rate, then bond is issued at a 15.0000 premium. Further, a bond is issued at par if the yield rate and coupon rate are the same. The following is a summary of Government 10.0000 Securities operations in Q3 2019. 4-Jul-19 18-Jul-19 1-Aug-19 15-Aug-19 29-Aug-19 12-Sep-19 26-Sep-19

91 Days 182 Days 273 Days 364 Days Treasury Bills (Tbills) There were seven (7) auctions conducted for Treasury bills in Q3 2019, with the total the 91 Days remained unchanged in Q3 Q3 2019, and the total amount offered at amount offered at cost standing at ZMW at 16.5001% same as the closing Q2 cost stood at ZMW 1.65 billion. 6.65 billion, translating into ZMW 950 yield rate on the 91 Days tenor. In term of performance, a total of ZMW 548 million per auction. The total bids received ?The 182 Days yield rate rose to million was received at cost representing a over the seven (7) amounted to ZMW 5.1 19.0000% as at end of Q3 from subscription rate of 35%, an uptake from billion at cost representing an average 16.5001% as at end of Q2 representing a 15% recorded in Q2 2019. However, only subscription rate of 75%. This represents a rise of 250 basis points. ZMW 423 million was allocated at cost marginal decline from the average ?The yield rate on the 273 Days as at end representing an uptake of 27% compared to subscription rate of 79% recorded in Q2 of Q3 was 26.5001% up from 25.2501% 10% uptake in Q2 2019. 2019. There was a decrease in the average as at end of Q2 uptake rate to 69% from 74% recorded in ?The yield rate on the 364 Days tenor rose Key observations on Govt bond yield rate Q2 2019, as a total of ZMW4.6 billion was by 100 basis points QTQ to 27.5001% at movements in 2019 allocated at cost. end Q3 from 26.5000% end Q2. ?No yield rate movement was recorded ?The Weighted Average Yield Rate on the 2- and 3- year tenors which were Key observations on yield rate (WAYR) at the end of Q3 rose by 34 basis maintained at 29.5000% and 29.7500% movements in Q3 2019 points to 25.4603% from 25.1238% at respectively. ?No yield rate movement was recorded the end of Q2. ? The 5- year yield rate rose by 150 basis on the 91 Days tenor in Q3 over the 7 to 32.0000% in Q3 from 30.5000% in auctions conducted. The yield rate on Government Bonds (GRZ bonds) Q2. Only one (1) bond auction was conducted in To Page 19

September 2019 ZAMBANKER 13 'We welcome constitutional refinement' By Zambanker Reporter Bank of Zambia Governor, Dr Denny Kalyalya has said the Central Bank welcomes the latest effort by the Government of Zambia to refine the Constitution of Zambia (Amendment) Act No. 2 of 2016 through the Constitution of Zambia (Amendment) Bill No. 10 of 2019, which is aimed at addressing problematic areas in the law, especially conflicting provisions and general flaws.

Speaking during the Bank's submissions to has been that the Constitution is too bulky (Amendment) Bill No.10 of 2019: the Parliamentary Select Committee to with too many details covering 117 pages Constitutional Provisions Relating to the scrutinise the Constitution of Zambia instead of merely articulating broad Central Bank Amendment Bill N.A.B 10 of 2019, the principles on constitutionalism. i. Section 71 of the Bill proposes to amend Governor explained that being the supreme The Bank of Zambia was initially invited Article 213 of the Constitution law of the land, the need for the law to be through a letter dated 7th November 2016 Amendment Act No. 2 of 2016, by deletion clear and devoid of contradictions by the Minster of Justice to make comments of clause 2 thereof and substitution i n c o n s i s t e n c i e s c o u l d n o t b e and recommendations on areas of concern therefor of the following: overemphasized. He said clarity in the following the implementation of the (2) The function of the Bank of Zambia is to supreme law of the land is critical for the Constitution of Zambia (Amendment) Act, formulate and implement monetary advancement of rule of law, which is the No 2 of 2016. The Bank of Zambia proceeded policy. bedrock for economic development that the to make its comments and recommendations central bank is charged to support and 3 by letter addressed to the Permanent The Bank proposes the amendment of the promote. Secretary Legislative Drafting dated 18th said clause to read: In the last fifty years, Zambia has engaged in November 2016. numerous efforts to develop a new The Bank of Zambia also participated in the (2) The primary function of the Bank of constitution. Prior constitutions include the National Dialogue Forum, where it further Zambia is to formulate and implement 1964 Independence Constitution, the 1973 repeated its submissions as per the aforesaid monetary policy. Constitution and the 1991 Constitution. In letter dated 18th November 2016. It is the This is to ensure that this clause merely addition, there has been significant understanding that the deliberations at the states the primary function of the central constitutional amendments, including those National Dialogue Forum and submissions Bank while additional functions of the Bank of 1969 and 1996. The efforts have been received from various stakeholders outlined will continue to be subject of an Act of directed at adopting a more democratic in the National Dialogue (Constitution, Parliament as per Article 215(a). This structure, as well as political institutions that Electoral Process, Public Order and Political submission will align to the provisions in the would be less susceptible to political Parties) Act No. 1 of 2019, culminated into SADC Model Law for Central Banks adopted manipulation. At the core of the demands is a the provisions contained in the Constitution in 2009 by the SADC Council of Ministers call for the development of viable of Zambia Amendment Bill No. 10 of 2019. which outlines, amongst other matters, that institutions of state that promote 'However, there are some aspects of the Bill all central banks in the region move towards participation, transparency, accountability which the Bank has identified and adopting a single, primary objective, and devolution in governance. In January recommends their refinement, in a bid to separate from the secondary objectives. 2016, the Zambia Parliament adopted improve clarity. There are also some other numerous amendments to the 1991 aspects of the Bill that the Bank recommends ii. Article 215 (e) of Act No. 2 of 2016 constitution. The Government hailed the to be modified to address contradictions/ reads: “appointment, qualifications, amendments as a new era in democratic inconsistencies, conform to our stated tenure of office, functions and emoluments governance in Zambia. However, the national values and principles, as well as of the Deputy –Governor”. amendments were criticized by some make the resultant Constitution stand the The Bank proposes the amendment of this sections of the society both for the way they test of time,” he said. Article in the Bill, by deletion of the word were adopted and for the substance The following were the Bank's comments “the” before Deputy –Governor and replacing contained in the amendments. The argument and/or observations on the Constitution with the word “a” to enhance its clarity as the

14 ZAMBANKER September 2019 current wording may be understood to mean which includes an obligation for them to provision on the composition of the National that there is only one Deputy Governor. This disclose the source of funds. It is our Assembly, we are of the settled view that should now read: considered view that the current Article Parliament would have no power to enact “appointment, qualifications, tenure of 60(4) gives abundant guidance to legislation on this matter. Even though an office, functions and emoluments of a Parliament on matters that ought to be enabling provision were to be provided, we Deputy –Governor”. prescribed in the management of political are of the considered view that the matter parties, including their source of funds. With relating to the composition of the National 2.5. Other Comments and /or Observations respect to source of funds, this provision is Assembly is such an important issue which on the Bill very useful, especially in the fight against ought to be enshrined in the Constitution Section 10 of the Bill proposes to repeal money laundering and terrorism financing and not left for prescription in an Act of and could assist to prevent political players Parliament. We therefore recommend the Article 51 and replacing it with a new from availing themselves to the proceeds of retention of Article 68(2) of the Constitution Article 51 providing in part as follows: …. crime in their quest to raise funds for their Act. if the person meets the qualifications political activities. We therefore recommend specified in Article 70 for election as a a retention of Article 60(4). v. Section 23 of the Bill proposes to amend member of Parliament. Article 83 of Act No. 2 of 2016 and We note that the referenced Article 70 is iii. Section 13 of the Bill proposes the introduces the term “legally disqualified”. being proposed for repeal under section 16 amendment of Article 63 of the We have noted that “legally disqualified” has of the Bill. We would therefore recommend Constitutional Act by the deletion of been defined, under section 76 of the Bill, to that the new Article 51 should remove mean a disqualification by a court or a quasi- reference to the Article and instead end as provisions requiring National Assembly judicial body. follows: ……..if the person meets the oversight over contraction of public debt and ratification of international However, there are no stated grounds and/or qualifications as prescribed. circumstances in the Bill that will guide the This will enable Parliament provide the agreements and treaties. It is our considered view that National court or quasi-judicial bodies on how to qualifications of members of parliament arrive at such a conclusion. This omission through an enabling statute. However, we are Assembly oversight is critical over these important public functions in a democratic may promote the mischief of legal of the considered view that qualifications for uncertainty and unfettered discretion by the members of parliament is a matter that is dispensation like ours. The peoples' representative in Parliament should have an courts of law and quasi-judicial bodies. best enshrined in the Constitution and not in The Bank proposes that clear grounds an Act of Parliament in order to ensure opportunity to scrutinise the intended purpose(s) of any public debt as well as and/or circumstances, such as, mental or certainty and insulate such provisions from physical incapacity, be included in the potential constant amendments by international treaties which bind and/or imposes obligations on the Republic. determination of legally disqualified by the whichever party is in power at any given courts of law and quasi-judicial bodies. time. i Section 15 of the Bill proposes to vi. Section 27 of the Bill proposes the i Section 12 of the Bill proposes to repeal Article 68 of the Constitutional Act repeal and replacement of Article 94 of amend Article 60 dealing with political which provides for the composition and the Constitution Amendment Act which parties. election of Members of Parliament and deals with the approval of appointments We note that Article 60(4) of the replace it with a new Article 68 and measures by the National Assembly Constitution Act provides for a p r o v i d i n g f o r e l e c t i o n , and Constitutional Court oversight over number of management nomination, qualification and issues for political parties vacation of office of Members the process. including their source of of Parliament. We note that the amendments effectively funds. However, the We note that the proposed eliminate the Constitutional Court oversight proposed Article 60 Article 68 does not say over the process of appointments and removes provisions anything about composition measures. It also dilutes National Assembly requiring Parliament to of Parliament including the oversight power by providing for automatic prescribe management 5 number of parliamentarians. effect of appointment or measure on third issues of political parties In the absence of an enabling To Page 42

September 2019 ZAMBANKER 15 a i b m a Z

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e r u t c i P WB Initiative to Boost Women-Led Businesses Women constitute the majority of Zambia's self-employed population and play a key economic role, with significant benefits for their families and communities. However, women face numerous challenges to financing, owning and growing a business, including access to capital and technology, lack of networks and knowledge resources, limited market linkages, challenging social and cultural norms, as well as legal, regulatory and policy obstacles to business ownership and development.

Acknowledging the challenge of full of Zambia, World Bank and other (including those that have done the economic participation, the World Bank development partners on women access to FAMOS check); and has identified Zambia as one of the finance and entrepreneurship. ?Women business associations and local participating countries in the World Bank training institutions. Women Entrepreneurs Finance Initiative The Zambia We-Fi project consists of three The World Bank Zambia We-Fi Program (We-Fi). The Zambian pilot is aimed at components: was launched early this year and is being supporting the growth of women-led SMEs ?Access to credit -this component will implemented by the Ministry of in the country by catalysing access to support capacity building to financial Commerce, Trade and Industry, Ministry of finance and capacity building of women institutions to design and pilot of Finance and Bank of Zambia. Established entrepreneurs. movable asset-based lending (MABL) in 2017 at the G-20 Summit in Hamburg, The objective of the Women Entrepreneurs and FinTech based credit product for Germany, We-Fi supports women Finance Initiative (We-Fi) is to address women-SMEs. entrepreneurs with access to finance, financial and non-financial constraints ?Access to Insurance Products - the markets, technology, mentoring, and other faced by women-owned/led SMEs in proposed activities will support the services, while working with governments World Bank (IDA and IBRD) eligible design, piloting and refinement of a and the private sector to improve the laws countries and territories. The We-Fi aims digital insurance product for women- and policies inhibiting women's to achieve this by mobilising more than SMEs. businesses in developing countries. US$ 1 billion in commercial and IFC finance ?Capacity building and access to We-Fi is supported by the governments of for entities that provide women networks- under this component, financial Australia, Canada, China, Denmark, entrepreneurs with access to debt, equity, management skills will be delivered to Germany, Japan, the Netherlands, Norway, venture capital, insurance products, women entrepreneurs to leverage new the Russian Federation, Saudi Arabia, capacity building, networks and mentors, financial products and services and plan Republic of South Korea, the United Arab and opportunities to link with domestic for business growth. It will also facilitate Emirates, the United Kingdom, and the and global markets, and for governments access to dedicated peer networks, trade United States. to improve the business environment for associations and business networking This except is part of a presentation women-owned/led SMEs. activities. made by Deputy Governor- The Zambia WeFi program is strongly Administration, Dr Tukiya Kankasa- aligned with ongoing Government The main beneficiaries under the Zambia Mabula during a panel discussion on initiatives, Bank of Zambia commitments WeFi project include the following: 'Access to Finance' at the first Regional ? to AFI (the Denarau and Sochi Accords) Women-led and women-owned SMEs Summit on the Women Entrepreneurs and aims to build on analytical and (between 200 to 500 women); Finance Initiative (WE-FI) in Abidjan, technical assistance work by Government ?Participating financial institutions Cote D'ivore

16 ZAMBANKER September 2019 Promoting Early Financial Literacy Education

By Zambanker Reporter knowledge, understanding, skills and the reading culture in Zambia. To supplement Financial literacy education at an early age confidence of Zambians to help them secure the education curricula offered in schools has a great impact on the financial future of positive financial outcomes for themselves and to promote literacy among the children children. Grasping even the most basic key and their families, which has in turn, results in public and community schools. The lessons on savings, how to budget, helps in growth in financial inclusion. literacy programme included sessions on children learn early how to consider all The continuing growth in financial inclusion finance, road safety and the importance of available options before making important in recent years has brought many Zambians heritage and culture. monetary decisions; in turn, this careful into the formal financial system for the first Early financial literacy education helps consideration may help them avoid personal time. Being financial included, formally, has reduce these risks and makes it easier for an debt and improve their chances of achieving its opportunities but also exposes consumers individual to understand or even question financial security when older. Poor financial to new risks and obligations that they may the risks of a financial service or choice. This decisions can have a long-lasting impact on not fully understand. helps them learn how to know how to budget, individuals, their families and community. This year, the Bank of Zambia (BoZ) save, invest or make wise financial choices for The lack of financial literacy is one of the sponsored and participated in the Lusaka everyday living, for example, choosing a aggravating factors leading to ill-informed National Museum Children’s Literacy mobile phone or a car to buy. Young people decisions on loans, investment options or Programme. The Lusaka National Museum need to learn how to manage risks: save for a other financial services. has conducted five literacy programmes for 'rainy day', avoid taking on unmanageable By 2022, the Financial Inclusion Strategy 2019. The programme targeted school going debt, and provide for their retirement/old aims to increase Zambia's overall financial children from public, private and community age and health care. inclusion rates—from 59 percent now to 80 schools. The schools that took part in the There are several steps and interventions percent in 2022 (this includes formal and programme included Twavwana Community that can be taken or adopted from successful informal financial services)—and an School, Simon Mwansa Kapwepwe Primary initiatives to promote early financial literacy increase in formal financial inclusion from School, Chinkuli Primary School, B.Y Primary education in Zambia. These can include (but the current 38 percent to 70 percent. School, Progressive Primary School and are not limited to): Financial literacy education initiatives such Derdanitte Primary School. ?Financial education being a core part of as the annual Financial Literacy Week The main purpose of the programme was to the school curriculum. In 2005, the countrywide campaign help improve supplement government efforts to scale up Organisation for Economic Co-operation To Page 29

September 2019 ZAMBANKER 17 When a Bank or Non-Bank Financial Institution Fails ...Facts for Depositors and Other Creditors

By Mambwe Chibale A Bank or a Non Bank Financial Institution (NBFI) fails when the Bank of Zambia (BoZ) takes possession and restricts operations or places the institution under liquidation. Generally, a Bank or NBFI is put under possession when it is undercapitalized and is unable to meet its obligations to depositors and other creditors. Undercapitalised in this case means that the Bank of NBFI does not comply fully with any prescribed capital adequacy requirements.

The other reasons why a Bank or NBFI may in each branch of the Bank or NBFI, in a selling it as a Ms Mambwe Chibale be put under possession or liquidated is newspaper of general circulation within the going concern, when it is involved in unsafe and unsound Republic of Zambia and through a statement transfer all or part of the business of to a practices or when the Bank or NBFI on the BoZ website. bridge bank, initiating a purchase and consistently breaches the provisions of the assumption transaction, disposing of some Banking and Financial Services Act (BFSA) What is possession and how long does it of the assets, place the Bank or NBFI under including Regulations, Directives, and last? compulsory liquidation or take an action Circulars issued under the BFSA. This write The BoZ takes possession of a Bank or NBFI that the BoZ considers necessary. up highlights facts about the failure of banks when it moves in to manage and control the and deposit taking NBFIs that are licensed Bank or NBFI. During this period which lasts What are the effects of Possession? by the Bank of Zambia (BoZ). a maximum of 90 days, the BoZ is vested Once a Bank or NBFI is placed under with full powers under the BFSA to, among possession, there are effects on its What is the role of Bank of Zambia in other powers, dissolve the board, continue stakeholders including depositors and Bank or NBFI failure? or discontinue operations, suspend the creditors. For instance, during this period, The BoZ draws its mandate from the Bank of payment of obligations including interest on depositors do not have access to their Zambia Act Chapter 360 of the Laws of deposits and terminate contracts of accounts and creditors' obligations are not Zambia which gives it the power to licence, employment of senior officers and met until such a time that the statement of regulate and supervise financial service employees. During the same period, the affairs is prepared and a decision regarding provided in the Republic Constitution as Bank or NBFI operations are restricted and whether or not to liquidate the Bank or NBFI well as licensing, regulating and supervising in most cases, Banks or NBFI do not conduct is made. If a decision to liquidate the Bank or financial service providers, the BoZ's role to any business with depositors, creditors, NBFI is made, depositors and creditors are ensure a stable, sound, efficient and shareholders and other stakeholders. notified of the decision. competitive financial system. Therefore, the It is important to note that the BFSA gives BoZ does not manage or make decisions What happens during possession? the Bank or NBFI or any interested person relating to the operations of Banks and During possession period, the BoZ prepares acting on behalf of a Bank or NBFI the right NBFIs. However, if through regulation and a statement of affairs of assets and liabilities to institute court proceedings for the BoZ to supervision the BoZ determines that the of a Bank or NBFI. This is done in order to terminate the possession of the Bank or business decisions of the Banks and NBFIs confirm the financial status for a Bank or NBFI within twenty one days from the are likely to affect the stability, soundness, NBFI where the institution is placed under possession date. The Court may require the efficiency and competitiveness of the possession due to involvement in unsafe and BoZ to show why the possession of the Bank financial system, it moves in to facilitate the unsound practices or consistent breach of or NBFI should not be terminated. orderly exit of that Bank or NBFI. the provisions of the BFSA and to ascertain In the event of a Bank or NBFI failure, the the extent of the insolvency where a Bank or What is Liquidation? BoZ acts in two capacities. In the first NBFI is placed under possession due to Liquidation is the process of selling the capacity, the BoZ moves in to take insolvency. A Bank or NBFI is insolvent when assets and settlement of obligations of the possession of the Bank or NBFI and in the it is unable to pay its debts as they fall due, liquidated Bank or NBFI. Upon confirmation next capacity, the BoZ will move to liquidate has assets that are insufficient to meet of the extent of the insolvency of a Bank or the Bank or NBFI. liabilities or has regulatory capital which is NBFI in the statement of affairs prepared below the prescribed minimum. The BoZ during the possession period, the BoZ may How are depositors and creditors also actively engages stakeholders and in addition to the other actions it can take, notified if a Bank or NBFI is put under potential investors on the prospects of the through a resolution of the board and an possession or liquidated? Bank or NBFI under possession with the order from the court order the compulsory The BoZ notifies depositors, creditors and ultimate aim of turning around the Bank or winding up of a Bank or NBFI. Within seven all interested parties through notices placed NBFI by restructuring or reorganizing, days of making an order, the BoZ must notify

18 ZAMBANKER September 2019 each director, shareholder, depositor, creditor and any other interested person of the order. The person notified may within thirty days of being notified file an appeal against the order to the court.

What is the Role of BoZ as a Liquidator? In effecting a compulsory winding up, the BoZ as a liquidator in addition to other powers, have power to exercise the powers of a Bank or NBFI, bring, carry or defend an action or legal proceedings in the name and on behalf of the Bank or NBFI and any business relevant to the beneficial winding up of a Bank or NBFI. The role of the BoZ is to ensure that assets of a Bank or NBFI are sold and proceeds are paid to depositors and creditors based on the priority of claim stipulated in the BFSA. It is important to note that in the absence of a deposit insurance protection scheme, the proceeds from the sale of assets of a Bank or NBFI determines how much is paid to depositors and creditors.

How does the BoZ settle obligations of a Bank or NBFI in liquidation? rd Section 132 of the BFSA provides for the Government Securities Operations for 3 Quarter 2019 priority of creditors that the BoZ follows Figure 3: Government bond Auction Results, Q3 2019 when settling obligations of a Bank or NBFI in liquidation. After taking into account 2019 GrZ Bond Yield Rate Results per Auction expenses incurred in the process of 01/2019 02/2019 03/2019 4/2019 compulsory winding up, priority is given to 2 year s 24.0000 29.5000 29.5000 29.5000 depositors. 3 years 24.5000 29.7500 29.7500 29.7500

If there is any residue after all depositors are 5 years 25.5000 30.5000 30.5000 32.0000 paid in full the next category of creditors will 7 years 23.9800 25.5780 25.5780 25.0000 be paid accordingly. If the proceeds realised 10 years 25.8500 27.0000 27.0000 28.0000 from sale of assets of a Bank or NBFI in 15 years 17.0000 19.0000 19.0000 20.0000 liquidation are not sufficient to pay all the depositors or any class of creditors in full, Weighted Averag e Yield the creditors are paid an equal amount Rate (WAYR) 24.8937 29.8435 29.5804 30.9393 across the board. If the proceeds realised from sale of assets of a Bank or NBFI are in excess of the Figure 4: 2019 Government bond Yield Rate Movements obligations, the remaining assets are 33.0000 distributed to the shareholders. 31.0000 What happens if all assets of a Bank or 29.0000 NBFI are sold? 27.0000 If all assets of a Bank or NBFI in liquidation 25.0000 are sold, the BoZ will terminate the 23.0000 liquidation of the Bank or NBFI by rendering an account in Court. 21.0000 Termination of the liquidation implies that 19.0000 the BoZ is relieved of its duty as liquidator of 17.0000 a Bank or NBFI and any creditors that 15.0000 remain unpaid or are partially paid at the 01/2019 02/2019 03/2019 4/2019 end of the liquidation process have no recourse on the BoZ. 2 years 3 years 5 years 7 years 10 years 15 years

Where can one get more facts about From Page 13 ?The WAYR in Q3 rose by 136 basis possession and liquidation? ?The 7- year yield rate recorded a decline points to 30.9393% from 29.5804% in For more facts on possession and of 58 basis points to 25.0000% in Q3 Q2. liquidation, one can refer to Sections 70-76 For any queries and/or clarifications, get in touch and 120-136 of the BFSA No 7 of 2017. from 25.5780% in Q2. ?The 10- and 15- year yield rates both with the Government Securities Unit, Financial Markets Department, Bank of Zambia. Tel +260 Mambwe Chibale is Acting Analyst- rose by 100 basis to 28.0000% and 399 399, email : [email protected] 20.0000% in Q3 from 27.0000% and Liquidations in the Non-Bank Financial Finzi Mwezani is Analyst - Market Integrity in 19.0000% respectively. Institutions Supervision Department the Financial Markets Department

September 2019 ZAMBANKER 19 transactions not authorised by him, or her the bank is liable to the customer for Online Bank Fraud: the said loss. As far as online banking is concerned, Supreme Court weighs in on who must bear the Supreme Court was of the considered view it is the bank's responsibility to responsibility in its latest Judgment in the case secure the online channel so as to create a safe electronic banking environment to of Investrust Bank Plc v Ibrahim Diab of 2019 combat all forms of malicious conduct resulting in loses to their customers. Between the bank and its customer, it is By Lungisani Zulu the bank that has the key to the safe as it With the increase in online banking in were, and sits in a vantage position to particular and digital financial services in control who for, and when, to open the general, there is bound to be an increase in safe door. With its wherewithal, the bank is better placed to examine what it is online bank fraud as unscrupulous doing from an online banking security individuals hope to cash in on lapses in the point and take inventory of potential risk use of technology. areas and address them. The Supreme Court sounded out a Mr Lungisani Zulu clarion call to the banks on online fraud as follows: Where fraud has been committed facilitate any other person to undertake Our considered view is that it is involving online banking services, the any of the offensive transaction on his incumbent upon banks such as the challenge of allocating liability, between account using his bank card or details. appellant in this case, to be generally more the bank and the customer, becomes a Common law has long recognised the proactive and address the threat of fraud challenging one, especially when there is customer's duty of care requiring that the more strategically. The bank must, as a no conclusive evidence of wrongdoing on customer must refrain from drawing reasonable man would expect, be ahead of the part of either the customer or the cheques or other payment orders in such the curve through regular upgrading of its bank. a manner as to facilitate fraud or forgery. infrastructure so as to always improve the In this article, I attempt to discuss the In the second instance, where the way in which it processes instructions to Supreme Court's latest decision which bank is negligent in ensuring that it make payment via the online banking resolves the challenge of allocating verifies that the instructions are indeed systems. Failure to do so is a breach of duty liability between a customer and a bank from the client, then the bank is liable. in an internet bank fraud. This is because a bank is under a legal implied in the contract subsisting between In the case of Investrust Bank Plc v duty to exercise reasonable care in a bank and its customer. On closer Ibrahim Diab, there was internet fraud executing a customer's instructions on reflection, therefore, we think these are which resulted in the loss of money from a the customer's account. The Supreme good legal reasons for the bank to be held customer's account held with the bank. court stated as follows: responsible. However, there was no conclusive W h e r e t h e b a n k e x e c u t e s In a nutshell, the case of Investrust evidence that the customer had been payment/debit instructions knowing them Bank Plc v Ibrahim Diab has provided negligent in the handling of the card to be fraudulently given while shutting its useful guidance on where to place which could have resulted in third parties eyes to all the red flags that may be raised, liability in an online fraud where there is having unauthorized access to it. or acting recklessly in failing not to make no evidence that either the bank or the There was equally no evidence that such inquiries as an honest and reasonable customer has been negligent but money has been lost. According to the Supreme the bank had been negligent in facilitating man would make, the bank would be Court, the bank must be held liable for the the unauthorized debits of the client's plainly liable. loss. This is because a bank is under a account. The tougher one is where there is no positive common law duty to exercise However, despite the absence of clear evidence that either the bank or the reasonable care and skill in carrying out evidence of wrongdoing on the part of customer has been negligent but money its obligations with regard to operations both the customer and the bank, it was has been lost on account of internet fraud. of its contract with its customer, to not in dispute that there was Who should be responsible? protect its customer from fraud. The bank unauthorized access to the customer's According to the Supreme Court, the is also better placed to examine what it is account which resulted in loss. bank is the one to be held liable. doing from an online banking security So, how then must responsibility be This is because a bank is under a point and take inventory of potential risk allocated when there is online bank positive common law duty under its areas and address them. fraud? contract with its customer to exercise However, the customer is liable if he or In the first case, where a customer is in reasonable care and skill in carrying out she is negligent in the handling of the card possession of a debit or other card linked its part with regard to operations of its or recklessly facilitates any other person to his or her account and as a result of his contract with its customer, to protect its to undertake any of the offensive or her negligence, a third party gains customer from fraud. A bank owes a duty transaction on his account using the bank access to the account, the customer is to its customers to take necessary steps to card or details. responsible. prevent unauthorized withdrawals from The customer must take care to the customer's accounts. Therefore, if a Lungisani Zulu is Senior Legal Counsel ensure that he or she does not recklessly customer suffers loss on account of the in the Legal Services Department

20 ZAMBANKER September 2019 Financing for Development - The Road to Agenda 2030

By Majorie Mulenga In my neighborhood, we have load-shedding, and this story is not different for many other places in Zambia. It is well known that Zambia relies heavily on hydro-power and the fact that we have four hours of load-shedding is an indication that hydro-power may not be adequate to meet the country's electricity needs. Given that climate change has significantly altered the rainfall pattern in the country, it is inevitable that more funding is required in the energy sector to diversify the energy sources.

Another food for thought: Drive between categorisation of financial institutions, n e e d f o r Lusaka and Mazabuka, Lusaka and Kitwe Zambia only has one development finance p r o d u c t Ms Majorie Mulenga or just within Lusaka, and it is evident that institution, the Development Bank of innovation to that most Zambian roads need to be Zambia. However, development finance attract international capital and encourage upgraded or that road construction can be delivered through other private sector participation. For instance, projects should be completed. institutions, which include specialised innovative financial products such as However, the current road funding entities that provide green finance, trade diaspora bonds and securitisation of structure mainly relies on public resources finance, value chain finance, microfinance remittances can attract international obtained from taxes, public borrowing and et cetera. The underlying principle is that capital flows. Crowdfunding may help toll fees that are paid by road users. If one the institutions should be able to synergize MSMEs to raise cheaper finance for small conducts a survey, a probable finding social and financial returns and possibly projects. would be that the tax burden falls largely incorporate technical assistance. E s t a b l i s h m e n t o f a g r i c u l t u re on the population in formal employment. Therefore, in order to have a commodity exchanges can help to mobilize Hence, under the current funding sustainable development finance private sector funding in the agriculture structure, financial resources for ecosystem, there is need to merge the sector. Sustainable finance through the development come from only a few people, interests of private sector players, who issuance of green bonds and similar who in most cases are also the ones usually want to get financial returns with instruments may help to diversify supporting unemployed youth as well as those of public institutions that care about Zambia's bond market. children and elderly people. the social welfare of society. However, innovative financial products Load-shedding, state of our roads and The 2015 Addis Ababa Action Agenda may also introduce new risks in the other development challenges all point to of the Third International Conference on financial sector and hence, throughout the the fact that public resources are not Financing for Development provides the process of setting-up a development adequate to fund development projects. To broader framework to create an finance ecosystem, financial stability achieve the Sustainable Development environment for unlocking finance for should not be overlooked. Goals (SDGs) and Vision 2030, there is development. Fortunately, the Bank of Zambia has need for mechanisms to unlock alternative The key building blocks of the financing already established the Financial Stability long-term finance for development. This for development agenda include private Unit, whose objective is to “monitor and will require a Development Finance sector participation, identifying priority analyse vulnerabilities in the financial and ecosystem to facilitate the creation of sectors where private sector investment is real economy which could give rise to a alternative channels that can offer not feasible, complementing public systemic crisis.” The unit also coordinates innovative financial instruments and investment resources, enhancing the policies on financial stability between products. viability for financing development and Bank of Zambia and other financial Development finance is not a new developing data and technical capacity. regulatory institutions. concept and has for a long time been used Although various approaches can be used Having a development finance by multilateral development organizations to implement a development finance ecosystem should not be viewed as the such as the World Bank and the African ecosystem, the starting point should be an panacea for all development financing Development Bank to achieve their assessment of the country to ascertain the problems. However, development finance objectives. available funding sources of various can help to boost industrial activity and lift Development finance seeks to facilitate development projects as well as the a lot of people out of poverty. If the establishment of a sustained, vibrant financial infrastructure of the country. The implemented efficiently, it can contribute and inclusive finance industry that assessment can then inform the financial to f i n a n c i a l d e e p e n i n g t h ro u gh meaningfully contributes to the solutions that should be designed to close introduction of new innovative financial development of the country through any gaps identified. solutions. leveraging private sector funding, creating In light of the ambitious SDGs, which an enabling environment and monitoring have to be achieved in less than 11 years, as Majorie Mulenga is an Examiner in the impact. well as various national economic goals, Non-Bank Financial Institutions Going by the Bank of Zambia's including Zambia's Vision 2030, there is Supervision Department

September 2019 ZAMBANKER 21 The Use of Data to Innovate providers reported that DFS was a commercially sustainable business. Commercially viability was reported to Financial Products have increased from December 2017 to December 2018 by 69%. Between By Kateule Nakazwe December 2017 and December 2018, both In today's world, the most valuable resource is volume and value of transactions significantly increased, growing by 59% no longer oil, but data. Clive Humby, a British and 239% respectively. The high growth mathematician and architect coined the phrase of transaction value reflects the increased “data is the new oil” in 2006. Almost every active DFS accounts and trust in industry has fundamental use for data to make DFS. A Lusaka-based FinTech, Zazu, which was better business decisions. Businesses that are established in 2015 as a financial literacy able to create value using a data-driven chatbot, launched a mobile wallet allowing users to make free money approach usually end up on top. Ms Kateule Nakazwe transfers, purchase goods using a QR code or to pay for bills like TV subscriptions and The term 'Data-driven', making product segments of the population, particularly electricity. For each transaction, the design decisions based on behavioral the unserved and underserved, limiting startup automatically categorises the evidence from users, is not a new concept t h e a b i l i t y o f F S P s t o d e s i g n spending to allow users to better track and has been used for years to improve products/services that improve financial their finances. The startup attracts clients forecasts on products and services. inclusion. looking to simplify how they make and Financial Service Providers (FSPs) FinTech (Financial Technology) startups collect payments, as well as manage their generate enormous amounts of customer in the industry possess the flexibility to money. Zazu said that the biggest feedback data (i.e. deposits/withdrawals at ATMs, prototype and test data-driven products it has obtained so far was that unless it purchases at points-of-sale, payments on the market compared to large banks, could on-board every merchant in Zambia done online, customer profile data who due to their silo, MNO policy and give them a QR code, it was hard for collected for KYC…etc?) every day that can structures, are not very good at utilising people to spend their money and benefit be used to develop products that meet the these rich data sets. Customers expect from the startup's spending analysis. After consumers' needs and thereby extend financial service providers to remember listening to the feedback, the startup financial services to underserved their preferences, engagement history and quickly started integrating their app to communities. The availability of data in behaviors, and thereby make available one of the card schemes in order to issue a the finance and banking industry has products that suit their needs. The FinTech Zazu branded prepaid card. The startup grown in recent years, deepening our startup ecosystem in Africa and Zambia aims to launch a prepaid card by end of understanding of how access to, and the particularly, has grown, with an increased 2019 that can be used around the world, at use of, financial services/products affect number of FinTechs with cash-transfer any store, ATM, or e-commerce platform welfare outcomes in Africa. Despite the management, lending, savings and that accepts Visa or Mastercard. According increasing availability of data, a practical payment services, aspiring to be full digital to Ventureburn, Zazu has over 1.1 million disconnect exists between the decisions banks. This was proved in the United users and had raised $1.4million in being made for financial inclusion and the Nations Capital Development Fund funding by September, 2019. use of relevant data to inform such (UNCDF) 2018 State of The Digital A key challenge in growing and endorsing decisions. This gap restricts the extent to Financial Services (DFS) Market report for a data-driven approach, in the financial which financial services reach all Zambia, which reported that 85% of industry, is a distinct lack of data science skills within Africa, as well as a general lack of understanding regarding the value of innovative data use and analytics. Any company looking to use the data-driven approach need data science skills within their team. Organisations that truly need data scientists have two things in common: They manage or have access to massive amounts of data, and they face weighty issues on a day-to-day basis. These are typically in industries such as finance. There are some interventions that seek to address these identified challenges. In 2017, for example, insight2impact, a Cape Town based global resource centre, launched the DataHack4FI Innovation Challenge, a programme that seeks to improve financial inclusion through the smarter use of data. The innovation

22 ZAMBANKER September 2019 challenge encourages collaboration and regulatory issues when new products or to solve problems that traditional banks skills development in data science to solve s e r v i c e s c o m e t o m a r k e t . T h e are not flexible enough to solve, thereby, financial and economic inclusion collaboration is a business accelerator slowly becoming an important vehicle on challenges, thereby extending valuable programme called FinTech4U, aiming to the road to financial inclusion. However, financial services to the underserved. The address some of these challenges. the data generated in the financial services innovation competition runs across seven The Fintech4U Accelerator programme industry needs to be made available to (7) African countries promoting data will work with 10 Zambian Fintech various players for analysis and deeper science to drive product design and companies that offer innovative and understanding of patterns and user habits. business decision-making, thereby effective digital financial products and Big banks can support the growth of catalyzing the development of new services to all Zambians, especially youth FinTechs by providing access to their financial services driven by customer data. and women. During the programme, each wealth data, and also possibly fund the Each FinTech startup is paired with a data FinTech will be provided with $4,000 in prototyping of high potential ideas in enthusiast and data science expert to prototyping funds, receive a technical and order to test the market, thereby closing develop a product that improves financial business assistance plus a cash grant for the gap between financial products on the inclusion. prototyping and regulatory navigation market and the products consumers In its third season, the competition guidance, among other perks. It is actually need. partnered with Liquid Telecom to provide expected that the FinTechs will reach a professional Microsoft Data Science 20,000 new users of financial services in Kateule Nakazwe is Assistant Manager course to build the capacity of 18 months. –Social Media in the Board Services participating data enthusiasts, through Zambian FinTech startups have the ability Department Liquid Telecom's 21CSkills platform. The competition concludes with the winning FinTech startups being awarded $5000 in-country, and $25,000 in seed Dealing with licensed capital for the overall winner at the grande finale. In 2018, Outsource Now, a Zambian financial service providers FinTech startup won the $2500 seed By Freda Tamba party to financial crimes; capital prize for Best Solution for Women Why is it important to deal with ?minimising the risk of being subjected and Youth in the country final for Zambia. licensed financial service provider? to unlawful collection practices; and Their mobile app, Z'POS, helps small scale The Banking and Financial Services Act ?enables easier recourse to the retailers digitise their business records to (BFSA) prohibits any person from provisions of the Banking and Services easily determine whether they are making conducting or offering to conduct a Act for arbitrage purposes in the event a profit or loss. financial service unless that institution is of disputes and/or being swindled The app records their stock levels, sales licensed by the Bank of Zambia. The and expenses and then it issues a report on purpose of licensing is to ensure that the How can a person tell that a financial how the business is performing over a persons proving the financial service are service provider is licensed? period of their choice. After doing their 'fit and proper' and have the requisite i. A licensed financial service provider is market research, Outsource Now found technical and financial ability to provide by law required to display the original that close to 50% of retail traders in the financial services in a safe and sound or copy of their license. The license must Zambia are women but they continue to manner have the following: access less formal finance than their male ?The name of the financial service counterparts. What are some of the advantages/ provider; Their data also indicated that Zambia's benefits of dealing with Licensed ?The address of the place of operation; population is largely made up of youths Institutions? ?The logo and identifying marks of the with a large number of them remaining There are several advantages that arise Bank of Zambia; unemployed. The data generated by Z'POS from dealing with licensed institutions. ?The license number; could, in future, be used by an SME to The main advantage is that you are ?The signature of the Registrar of Banks access finance from a bank, or determine dealing with authorised persons that have and Financial institutions; stability or growth potential of the been considered fit and proper by the ?The license type business. In using such data to help SMEs licensing authority. ii. The Bank of Zambia has a list of all grow, more job opportunities will be There have been instances in Zambia licensed financial service providers provided for youths in the communities whereby fraudsters have set up available on the Bank of Zambia that these SMEs operate from. unlicensed financial institutions, website, www.boz.zm. The United Nations Capital Development collected deposits from unsuspecting iii. Anyone can contact the Bank of Zambia Fund (UNCDF) and BongoHive, Zambia's members of the public and disappeared using the contact details on page 2 of first technology and innovation hub with depositor's funds. Dealing with this magazine, to find out if an recently partnered to support the growth licensed institutions, therefore, organisation is duly licensed by the Bank of Zambia of the digital economy and increase access minimizes the risk of loss of depositors' to financial services for all in Zambia. They funds and enables consumers to have Rule 1. Do not deal with any unlicensed financial services provider. Do not give or recognised gaps in the digital economy of some comfort in the financial institutions deposit money with any institution unless Zambia, where FinTechs and SMEs have a they are dealing with. that institution has a license to accept lack of understanding of the real Some specific advantages/benefits of deposits. challenges customers face, do not have the dealing with licensed institutions include: ? Rule 2. Report all suspected unlicensed opportunity to test pilot their innovations minimising risk of dealing with financial service providers to the Bank of with reputable partners to better suit the fraudsters; ?minimising the likelihood of becoming Zambia market, and do not adequately navigate

September 2019 ZAMBANKER 23 Photo Focus

Directors of the Board, Ms Namuchana Musiwa and Professor Hellicy Ng'ambi Former Senior Directors Supervisory and Monetary Policy Messrs Chisha with Director Board Services, Ms Namwandi Ndhlovu and Corporate Mwanakatwe and Peter Banda with Deputy Governor-Operations at the Governance Guru Mr Marvin King in South Africa. Governor’s meeting with Chairpersons of commercial banks at the Southern Sun.

Assistant Manager-Procurement, Mr Francis Bwalya presenting a farewell The Bank of Zambia choir entertaining guests at the Ndola Civic Centre gift to Mrs Rhoda Musonda on behalf of the Procurement & Maintenance Services Department.

Senior Economist, Mr Jonathan Misapa AKA Akafumu ( in cap) pays attention Regional Office staff at the Urban Hotel in Ndola during a workshop. to a chess game between BoZ and NORTEC.

Director Board Services, Ms Namwandi Ndhlovu, Acting Assistant Director Parents and teachers reading the Zambanker before the St Claire Girls school Communications, Ms Besnat Mwanza, teaching staff and members of the borehole handover. community ‘testing’ the borehole donated by the Bank to St Claire Girls School.

24 ZAMBANKER September 2019 Photo Focus

Economist Liquidity Forecasting, Mr Liuwa Liuwa attending to clients at the Manager-Liquidity Forecasting, Ms Flora Ngoma addressing members of the Bank of Zambia pavilion during the Zambia Agriculture and Commercial press at the Bank of Zambia pavilion during the Zambia Agriculture and Show. Commercial Show.

Manager- Currency Processing, Ms Chimuka Kasempa attending to young show Members of a family attempting the board game at the Bank of Zambia goers at the Bank of Zambia pavilion during the Zambia Agriculture and pavilion during the Zambia Agriculture and Commercial Show. Commercial Show.

Members of the public waiting to play the quiz game at the Bank of Zambia Happy winners pose for a photo at the Bank of Zambia pavilion during the pavilion during the Zambia Agriculture and Commercial Show. Zambia Agriculture and Commercial Show.

Part of the Bank of Zambia team that worked at the BoZ stand during this 'We are Bank of Zambia!’ year's Zambia Agriculture and Commercial Show.

September 2019 ZAMBANKER 25 human intelligence (fogel and Kvedar, 2018). Artificial Intelligence ?Machine learning is a sub discipline of AI, where computer programs (algorithms) learn associations of predictive power from examples in and The Future data. Machine learning is most simply the application of statistical models to By Jean Couvaras Kamanga data using computers. The term Artificial Intelligence conjures up ?Big data is defined as extremely large different images for different people. data sets that may be analysed Sometimes, we imagine a futuristic world that computationally to reveal patterns, trends and associations, especially is operated mainly by robots, and where relating to human behaviour and humans have a very limited role to play. interactions. Ms Jean C. Kamanga

Can machines really take over the world? daily lives to make our lives easier. Contrast between analysis of data by Can humans be reduced to a zombie like Ever noticed the predictive tendencies of human beings and by machines experience where decisions are made for google searches? Or how WhatsApp Try multiplying 287 X 549 in your head them? And bringing it a little closer to automatically lists your most likely and see how long that takes you. Even the home, can a machine take over my job? recipients for a picture to be forwarded? most intelligent mathematician would Scary thought that! Some of it a little too Or how amazon repeatedly tries to predict take longer that the time it would take for extreme, and yet some of it is already real. what other items you may be interested in a calculator to solve that simple And sometimes we think of artificial purchasing? Or how Netflix can show you arithmetic. It is therefore now widely intelligence as a highly technical world movies you must see based on your accepted that machines and algorithms where algorithms help humans to solve profile? How about Alexa giving you are better than humans, including problems, or do work that is too manual today's weather update? These are all experts, at calculations and predictive or dangerous for humans. A much more products of artificial intelligence based on analytics. For instance, in a certain study, encouraging thought. The reality is the data the systems have on you as a user. trained counsellors predicted the grades probably that artificial intelligence A lot of people still get uncomfortable of freshmen at the end of a school year. encompasses both extremes, depending when they get to another country and The counsellors interviewed the on the extent of their use, and what role immediately get an unprompted welcome students, had access to their high school they are allowed to play. We therefore m e s s a g e o n t h e i r p h o n e . Eye s grades and aptitude test performance as need to find a middle ground, in order to everywhere, watching and predicting well as access to their personal get the best out of artificial intelligence. your moves. That is all AI. Exciting at best, statements. The Statistical algorithms We already live in a world of artificial and also very intrusive and scary at worst. only had access to a fraction of the data intelligence starting from using your the counsellors had. Nevertheless, the formula was more accurate than 11 of the smartphone to translate languages, or Definition of key terms 14 counsellors. getting into your smart car to visit your ?Artificial intelligence (AI) is defined Such Studies have been replicated across doctor who then uses a robotic machine to as a broad scientific discipline with its various disciplines and the results are the make a diagnosis and recommendations roots in philosophy, mathematics and same. Machines are simply better than on best treatment options. All platforms computer science that aims to humans at analysing data, especially large s u c h a s s o c i a l m e d i a , e m a i l understand and develop systems that data sets. For instance, AI is now being communication, google search, and the display properties of intelligence. AI is used in certain judicial systems to help use of google maps are all products of the development of computer systems with determinations on parole decisions. artificial intelligence which we use in our to solve problems associated with Automated risk assessment tools and software are now being used increasingly to consider factors about a prisoner to aid judges in making parole decisions. Previously, a Study had demonstrated that in parole decisions, the default decision by judges would be for prisoners to remain in prison. The Study showed that when judges were mentally depleted, they reverted to the default decision, and that after taking a break and a meal, inmates were most likely to get a release. So apparently a hungry and tired judge does not bode well for an inmate. The We already live in a world of artificial intelligence same cannot be said for a machine or starting from using your smartphone to translate software that is not affected by languages, or getting into your smart car to visit your extraneous factors such as hunger or doctor who them uses a robotic machine to make a fatigue. diagnosis and recommendations on best treatment options There are various reasons why

26 ZAMBANKER September 2019 algorithms and machines can outperform with compliance monitoring for forecast models. It can also be used for humans in analysis and predictions. One different sectors of society. For tracking and monitoring of regulatory of the key reasons was already instance, in the financial sector, changes. It ought to be stated here that demonstrated by the judges' parole software has been developed to deal most of the AI related to regulatory experiment which showed that mental with AML/CFT compliance related oversight have not yet been tested in depletion in humans resulted in less issues such as detection of suspicious the market. objective decision making. We have all transactions based on customer experienced what happens in a class that profiles as well as customer The Future takes over 2 hours. Our ability to segregation. Advances in machine We cannot ignore the fact that AI is here, concentrate in the first hour is quite good, learning and large scale computing and it is here to stay. Much can be said and then it becomes a challenge to resources enable better detection of about the immense benefits of utilising AI maintain the same level of concentration anomalies in customer transactions to ease human life as well as business. after that. Similarly, at work, most than ordinary human analysis is able Isn't Alexa just the perfect Assistant? people's ability to continually perform to offer. AI is a powerful ally in However, we cannot ignore some of the mentally demanding tasks is very limited. analysing real time activities and ills that have the potential to result from Research also shows that as humans, we making predictions and detailed overreliance on AI. Like most human are not able to assimilate all the forecasts vital for business. inventions, AI can also be abused for information we may have, and analyse it ?Data storage and analysis – AI has criminal and unsafe purposes such all. We tend to pay attention to certain capabilities to store large data sets automated detonation of weaponry. information, and disregard some, even much more easily than traditional There is also a well-founded fear that AI without realising it. It's a human bias. methods of data storage. AI can easily can become more intelligent than Even if we may have certain information, use such data sets to predict patterns humans, and thus humans failing to if we fail to recall this information at the and trends, and make associations control the extent to which AI can be point a decision is being made, we may as that would not be ordinarily visible utilised or the manner of utilisation. well not have the information at all. As through human analysis. This makes Machines are excellent at data storage and humans, the confirmation bias also decision making much more efficient even analysis and perhaps routine entails that we only pay attention to the due to the ease of analysis. Given the decision making. However, machines will data that supports a decision we want to amount of data that organisations normally rely on data fed to them over make, and are likely to ignore data that such as banks and other financial time, and in that regard, will fail to pay contradicts it. On the other hand, institutions have to deal with, some of attention to extenuating circumstances machines are able to not only store, but it internal, but most of it external, the which humans will notice. After all, they analyse large data sets without need for AI to help with not only are not humans! AI also, and perhaps experiencing mental depletion or hunger. storage, but also analysis of such data most importantly, asks for us to adjust our This makes them more efficient, and the is paramount. AI is able to identify skills set in order to ensure that we do not lack of bias, makes them more objective complex, non-linear patterns in such become obsolete. Some jobs are better than humans. large data sets and reduce it to simpler done by machines, there can be no Another reason why machines could be or more tractable forms. This makes it disputing that. And this perhaps is the superior is that humans are not able to be much easier for institutions to biggest challenge of AI so far. But I venture consistent in making summary effectively use such data for regulatory to say it is one we can manage, by judgments of complex information. A reporting as well as trends analysis. adjusting our skills set appropriately to review of 41 separate studies of the ?AI can be less costly and may serve for take into account the benefits and reliability of judgments made by auditors, more reliable business methods. In advantages of AI, we can purposefully p a t h o l o g i s t s , p s y c h o l o g i s t s , the field of financial Investment, an AI adjust our skills in order to ensure we are organisational managers and other known as Robo Advisor has been not rendered obsolete in an increasingly professionals suggests that the level of developed that is able to offer technological and automated world. inconsistency is typical, even when a case investment advice to potential As aptly stated, “The question is not is revaluated within minutes (Kahneman, investors based mathematical rules or whether you are “for” or “against” AI – Thinking Fast, Slow). algorithms. Robo Advisors allocate that's like asking ancestors if they were for investments based on customers risk or against fire”. (Max Tegmark). How we can harness artificial profiles and return targets. Chatbots Dan Brown conclusively captured the good, are another AI technology that is being intelligence the bad and the scary of AI in his book “The used in organisations to eliminate It is quite disheartening to find that Origin”. The Book outlines very well why repetitive human work such as basic machines outperform us in a lot of things. key decisions should not be left to But perhaps, this is just the egocentric customer service delivery or opening machines. The decisions will be rational perception, as opposed to a proper of new accounts. A chatbot can you can be guaranteed of that, but they will evaluation of AI and its role in our lives. s t i m u l a te i n te ra c t ive h u m a n surely leave a bitter taste in your mouth at What we need to do is harness AI and use conversation by using pre-calculated its advantages to improve our operations. user phrases. Such AI is normally certain times. AI is highly objective, AI need not be seen as a competitor to cheaper and more reliable than having rational, highly intelligent and analytical, mankind, but as a complement to increase a human being perform such tasks. but lacks the 'human' judgment' necessary business efficiency. Some of the key areas ?Regulatory oversight ease: AI also has for the world as we know it. Embrace it we in which AI has a proven track record been found to have potential in order must, but with caution, knowing full well include the following: to ease the businesses compliance to what it is capable of if left to its own whims. ?Compliance monitoring and risk regulatory oversight. For instance, it management – a lot of software has has been found that AI has potential to Jean C. Kamanga is Senior Legal Counsel been developed that are able to assist be used for stress testing for financial in the Legal Services Department

September 2019 ZAMBANKER 27 Artificial Intelligence and Technology in the

legal profession. Practice of Law: Disruptive For example, litigators in the legal profession have been utilising AI for almost ten years in the discovery process. Technology In The Law Accordingly, all the hype about AI in the legal industry as being a new phenomenon is precisely that, hype. By Leonard Nkole Kalinde There are more than 30 legal applications of The twenty-first century has brought AI currently being used by the legal significant technological advancement that profession today and these fall under six major categories, namely: Prediction permeates all aspects of our lives. The legal Technology, 2) Legal Analytics, 3) Due field, though slow in the adaption of this Diligence, 4) Document Automation, 5) technology, is beginning to pick up the pace. Intellectual Property, and 6) Electronic Artificial intelligence (AI) is now used to Billing. 4.0. FUTURE PREDICTIONS OF AI'S perform legal work once solely completed by IMPACT ON THE LEGAL PROFESSION legal practitioners. Dr Leonard Kalinde There are disagreements among legal professionals and even experts who are in 1.0. INTRODUCTION AI covers a variety of processes including the AI and technology fields regarding, what Prediction that AI will replace lawyers is those such as image recognition or robotics impacts, if any, AI could have on the legal frequently in the headlines as of late, and that currently have no implementation in profession in the future. Some believe the that prediction without a doubt creates the practice of law. AI experts, such as impacts will be beneficial and positive, discomfort for lawyers who are already in Russell and Norvig, provide the following while others portray the impacts in much an anxious state with regards to the future four concepts with which to view AI: (1) more of a negative light. of the legal profession. systems that think like humans; (2) systems For instance, in an article by Lauri Donahue, As this write up will explain, despite the that act like humans; (3) systems that think she suggests that “a consensus has emerged predictions in the headlines, AI may benefit rationally; (4) systems that act rationally. that AI will significantly disrupt the legal the legal profession and not steal its jobs, at Specifically, AI is the theory and market,” as well as “impact the availability of least not yet. development of computer systems able to legal sector jobs, the business models of However, some lawyers are still hesitant to perform tasks normally requiring human many law firms, and how in-house counsel fully embrace AI even though it's a fact that intelligence, such as visual perception, leverage technology”. disruptive technologies are changing the speech recognition, decision-making, and According to the McKinsey Global Institute, way businesses and regulators think and translation between languages. about 23% of a lawyer's daily job duties provide services to their clients. Therefore, AI in the practice of law is the could be automated. Similarly, several theory and development of processes estimates suggest that a lawyers' hours 2 . 0 . OV E RV I E W O F A RT I F I C I A L performed by software instead of a legal could result in a reduction of 13%, if all legal INTELLIGENCE practitioner whose outcome is the same as if technology, including AI that is currently Much has been said recently about the rise a legal practitioner had done the work. available is implemented and employed. of “AI” and its potential to replace a high This broad definition combines the use of According to a 2016 Insight Report by percentage of the current workforce. technology with the desired end result. This Deloitte, it reveals that: Within the next Adding to this perceived notion of jobs definition provides the basis of what AI does twenty years more than 100,000 jobs in the ceasing to exist is the alleged scenario in (software that performs processes which a legal sector are likely to be automated. which “AI” could spell the end of the human lawyer would otherwise have done) with Moreover, the Deloitte Insight report race. what it produces (the end product of a predicts profound reforms across the legal The legal profession has also seen similar lawyer's work). profession within the next 10 years, for and dramatic predictions. Many practicing which it finds that 39% of jobs (114,000) in lawyers, today, are weary about the 3.0. APPLICATION OF ARTIFICIAL the legal sector stand to be automated in the emergence and use of new technology in the INTELLIGENCE IN THE PRACTICE OF LAW longer term as the profession feels the practice of law, such as AI and machine Legal processes have been impacted the impact of more radical changes. learning. most by AI. This is especially true for routine Deloitte further predicts that by 2025, the Lawyers are apprehensive about this new legal tasks due to the nature of their work. legal profession will see an overwhelming technology because they do not understand Many AI applications are already being used change as a result of the intense pace of it, and as a result fear that their jobs may in the legal profession. These applications technological developments, shifts in become obsolete. include, inter alia, systems that can perform workforce demographics and the need to AI has impressive underpinning comprised specific tasks that a lawyer may typically offer clients more value for money. In order of computer science, mathematics, perform on a daily basis, such as document for law firms to remain competitive and philosophy, psychology, economics, data input, legal research and analysis, and ensure that they attract the best talent to neuroscience, linguisitics and biology. contract review. support their business, the time to develop a AI is typically defined as the capability of a One of the goals for this new technology is to clear strategy to deal with these changes is machine to imitate intelligent human streamline the laborious and mundane now. behaviour. A satisfying way to view current tasks lawyers encounter on a daily basis. On the other hand, in a Law Journal by “AI” generally is as a big “forest of academic Streamlining leads to efficiency, for which Sergio David Becerra, he indicates “AI is not and commercial work around 'the science lawyers could see an increase in the amount likely to replace lawyers in procedural and engineering of making intelligent of work they perform in a workday. Thus, it aspects of legal practice or in legal research. machines.'” appears AI is positively transforming the Instead, AI will be used to complete remedial tasks via automation-allowing

28 ZAMBANKER September 2019 lawyers to focus on the more detailed and On the other hand, is that not what it the information into the machine. high-level work of analysis. Accordingly, appears AI software is steering towards? Therefore, the future of AI could potentially these various opinions amongst legal For instance, a live human being is the one lead to software that is emotionally professions and experts may continue to who inputs the data, or codes, into a intelligent, cognizant of its surrounding exist as the use of AI in the legal field machine-based learning system, and that social circumstances, and aware of the continues to develop daily. According to data comes from the mental thought desires of the community. Professor Richard Susskind, the trend in the processes of a human being. Although it is development of AI applications in the legal likely subjective as it is based upon the Dr Leonard N. Kalinde is General Counsel profession will continue to grow. He cognizant thinking of the person who inputs in the Legal Services Department predicts that “The way lawyer's work will change radically in less than two decades, given the remarkable state of flux the legal profession finds itself in. Innovative ways of providing legal services will develop, new providers will be firmly established in the market, and the workings of the courts will transform.” As a result, Susskind predicts many conventional legal businesses will fail, unless they adapt. On the contrary, entrepreneurial and creative young lawyers will be the ones with a whole set of fresh opportunities, which may be more advantageous to their future and success in the legal profession. According to Professor Gary E. Marchant: “AI represents both the biggest opportunity and potentially the greatest threat to the Promoting Early Financial Literacy Education legal profession since its formation.” From Page 17 importance of financial literacy and Marchant indicates the radical effects of AI relevant pedagogical methods, and they on the legal profession will continue to and Development (OECD) recommended should receive continuous support and accelerate in the coming years. that financial education start as early as training to teach financial literacy. The The opportunity AI presents for an attorney possible and be taught in schools. teachers should be able to identify or law firm today is to be leaders in Including financial education as part of topics of relevance to the Zambian efficiency, cost-effectiveness, and the school curriculum is a fair and context and those that are specifically p r o d u c t i v i t y. N e v e r t h e l e s s , t h e efficient policy tool. Financial education tailored to our country's education incorporation of AI into the legal practice is a long-term process. Building it into system. This can also help ensure “will be a matter of keeping up rather than curriculums from an early age allows c o n s i s t e n c y o n i n f o r m a t i o n children to acquire the knowledge and being a leader.” According to Marchant: One disseminated. skills to build responsible financial thing is certain—there will be winners and ?There should be easily assessable and behavior throughout each stage of their losers among lawyers who do and do not effective learning tools and resource education. The introduction of a financial take up AI, respectively. As one senior platforms. Different format of material literacy assessment will result in a unique lawyer recently remarked, 'unless private from reading material, brochures, international benchmark on the level of practice lawyers start to engage with new videos and games. Young people utilise financial literacy of young people. different ways of learning. Practical, technology, they are not going to be relevant ? Teachers should be adequately trained interactive and fun methodologies even to their clients.' Accordingly, it is time and resourced, made aware of the to jump on board because the AI train is usually have the most impact. leaving the station.

5.0. CONCLUSION Despite the perpetual fear by the legal profession that AI will soon render lawyers obsolete, as this write up shows, it is likely that will not be the case. Yes, the legal profession is undoubtedly evolving at a fast pace by way of technological advancement; but the emergence of these new technologies may prove to be more beneficial, than not, to the legal profession. As of today, the AI software companies appear to share a common goal, which is to create software that promotes efficiency and accuracy in the daily tasks of lawyers and the legal profession as a whole. Although AI can assist with the tasks as mentioned earlier, it cannot assist with understanding a client's needs and advocating for those needs, nor can it replace the oral advocacy skills of a seasoned lawyer.

September 2019 ZAMBANKER 29 LIBRA-Facebook to launch digital currency in 2020

By Kombe Kaponda & Jimmy Couvaras It came as a surprise to many people when it emerged in May 2019 that Facebook in-conjunction with other development partners Mr Kombe Kaponda would launch a digital currency called Libra in late 2020. Mr Jimmy Couvaras

A digital currency is money which is available for almost 3000 years from the barter system forms of digital currencies, notably bitcoin. in digital form, distinct from traditional to silver/gold to modern day banknotes and Firstly, Facebook has recognised the need to physical banknotes and coins. Digital coins. Each successive stage in the evolution of work with regulators, experts and other currency can mean a digital representation of money has mainly been intended to address stakeholders in the development of Libra. The real money (fiat currency) or non-fiat the challenges faced in the earlier models. In collaboration between Facebook and currency. this respect, and in view of tremendous reputable payment companies such as Libra is a digital currency that is built on the advances made in digital technology, a digital MasterCard and PayPal adds some credence foundation of blockchain technology. In a currency such as Libra seems to be the next to the Libra project. Facebook has also been white paper published by the Libra stage in the evolution of money. In a sense, it is transparent in highlighting potential Association, the mission for Libra is 'a simple quite inevitable. But there seems to be quite challenges in the development of Libra. One global currency and financial infrastructure some apprehension towards Libra from very such challenge highlighted by Facebook is that that empowers billions of people' (Libra, key stakeholders. Is digital currency really a as of today there is a no proven solution that 2019). bad thing? The answer is No even though can deliver the scale, stability, and security there are improvements that are needed with needed to support billions of people and WHO ARE THE FOUNDERS OF LIBRA? many models of digital currencies. The main transactions across the globe on a The founding members of Libra comprise 28 problem with Libra is not the message permissionless network. founding member-companies that include (introduction of a new digital currency) but Further, Libra, unlike the majority of investment firms such as Thrive Capital, the messenger (Facebook) and the timing of cryptocurrencies will be fully backed by a Ribbit Capital and union square ventures, the message. Libra also poses questions on the reserve of real assets. A basket of bank B l o c k c h a i n deposits and short-term government companies such as securities will be held coin base, social in the Libra Reserve media companies for every Libra that is such as Facebook created, thereby through its newly building trust in its formed subsidiary intrinsic value. These c a l l e d C a l i b r a . are positive strides in Members also include delivering on the payments companies promise of a global such as Mastercard, digital currency. Visa and PayPal. The complete list of the 28 FUTURE OUTLOOK funding companies is The evolution of shown in the Figure money into a digital below. form seems quite Facebook is expected i n e v i t a b l e . T h e to play a leading role prerequisites for this in the early formative evolution seems to be stages of Libra. The falling into place, low cost smart phones founding members sovereignty of a country's monetary policy. have also created the Libra Association which and low cost data plans. The challenge for The challenges faced by Facebook over data proponents of digital currency is to earn is an independent not-for-profit membership privacy, security, election interference and organisation headquartered in Geneva, confidence and ensure acceptability of digital misinformation are still fresh in the memories currencies. Switzerland. The association's purpose is to of many regulators, experts and other coordinate and provide a governance stakeholders. In view of Facebook's recent REFERENCES framework for Libra. The association aims to challenges, the current verdict seems to be have approximately 100 members by the Libra, 2019. libra.org/en-US/white-paper/. [Online] , that it cannot be trusted to handle financial Available at: https://libra.org/en-US/white-paper/, target launch in the second half of 2020. transactions and data. And based purely on [Accessed 13 09 2019]. Facebook's recent history, these doubts are WHAT ARE THE CHANCES OF SUCCESS FOR justifiable. Kombe Kaponda Network Specialist in the ICT LIBRA? Department while Jimmy Couvaras is BABY STEPS Manager-Payment Systems Development in When evaluating the potential for success for On their part, Facebook and its founding Libra, it is helpful to look at the history of the Banking, Currency and Payment Systems members have attempted to address some of Department money. Money has been part of human history the concerns raised against most common 30 ZAMBANKER September 2019 Digital Financial Services Data Automation Project Bank of Zambia and UNCDF collaborate to automate the digital finance industry data to enhance financial inclusion and economic development By Malingose Kambandu the data will be disaggregated by sex and policy towards smartphone penetration In May 2019, the Bank of Zambia (BoZ) and gender, to increase financial inclusion by and thus a move away from agency-based to the United Nations Capital Development 13% by 2022 and by having access to real- app-based transacting. In addition, Nepal Fund (UNCDF) began working on a project time data, the central bank - the custodian of exhibits more integrations towards to automate the digital financial services these data - can view progress made in interoperability which Zambia is still (DFS) data that comes in from digital achieving this goal. working towards. Such examples illustrated finance providers such as banks, mobile Director Banking, Currency and Payment what was possible for the growing Zambian network operators, microfinance Systems, Mr Lazarous Kamanga, said this market. institutions and third-party operators. The project is critical to the success of driving Reflecting on the overall project after the project is necessary for the DFS Ecosystem, financial inclusion for all Zambians. “In trip to Nepal, Moonga Chinika, Compliance as market data is critical to the growth of the Bank of Zambia, we strive to be a responsive Manager for Mobile Financial Services at industry, advancing digital financial and data-centred organisation. This project MTN said, “The payment systems industry is inclusion and ultimately, Zambia's digital helps us to better measure financial growing and evolving at a tremendous rate economy. It is championed by the custodian inclusion, and how to advance it all over and MTN has supported the initiative by BoZ of DFS Data, BoZ, who has oversight of the Zambia. We also welcome the reduced time for an Automated Reporting Platform which industry and aims to increase financial it will take to deliver important data to the will enable BoZ to gain deeper insights into inclusion nationwide. BoZ and the DFS Zambian DFS Ecosystem, as well as the the industry. We appreciate that it will also Ecosystem as a whole, needed a system to increasing number of Bank of Zambia give us a better sense of the market, as well aggregate, compile and analyse the data stakeholders interested in learning more as to keep abreast of emergent industry more efficiently and effectively than the about DFS activity in Zambia. We welcome trends.” existing manual system. the partnership with UNCDF to help UNCDF and BoZ issued a Request for The DFS Data Automation System Project accomplish this important goal and look Proposals using a Business Requirements comes at an opportune time for Zambia's forward to its success and benefits to the Document designed with the Bank of digital finance services industry. The entire ecosystem.” Zambia in December 2018. The resulting market has seen incredible year-on-year At the end of August, a delegation from BoZ chosen vendor for this project is growth since 2015 when only 59.3% of the and other project champions in financial SmartSolutions, a technology firm based in population were financially included; from institutions, such as MTN, Zanaco and Zoona Nepal and the USA. Three main departments 2017 to 2018, there was an annual growth undertook an exposure visit to Nepal to within BoZ work closely with the rate of DFS accounts of 89%, with 16.5 learn more about the data automation development team on the platform: Non- million registered DFS accounts. The project conducted in that country with the Bank Financial Institution Supervision, growth of the digital economy means more central bank the Nepal Rastra Bank. The I n fo r m a t i o n a n d C o m m u n i c a t i o n Zambians will be able to leverage these delegation met with Nepal Rastra Bank Technology (ICT) and the Banking, services to improve their livelihoods, and Deputy Governor Mr Chinta Mani Sowakoti, Currency and Payment Systems Division. BoZ actively collaborates with many development partners and commercial The data platform is open-source and stakeholders to support local economic banks to learn of their experiences using the modular and is expected to go live in the last development and address the Sustainable Nepal Rastra Bank reporting and eMapping quarter of 2019. Development Goals (SDGs). portal; to further expand knowledge on the Working with UNCDF, BoZ and several digital finance sector, and the delegation Malingose Kambandu-Nkhoma is financial service providers is creating a data visited various digital finance providers in Communications and Knowledge platform into which over 50 Zambian DFS Kathmandu, such as eSewa and IMEPay, to Management Consultant Mobile Money providers can input their transaction data, see what products and services are available for the Poor (MM4P) at the United which will then be aggregated, analysed and for customers. One of the learnings from the Nations Capital Development Fund available to all users in real time. In addition, visit to Nepal was that country's deliberate

September 2019 ZAMBANKER 31 The Electronic Library Management System: range of electronic resources, the Bank procured an Electronic Library Management Sirsi Dynix System (ELMS) called Sirsi Dynix. Benefits of the ELMS The ELMS has made it possible for Library By Kamyalile Simuchimba Chileshe services to be automated, as these services Developments in the information have moved from being manual to electronic. technology sector have forced The use of newer technologies such as Sirsi organisations to introduce and upgrade Dynix has improved the efficiency and effectiveness of Library service provision. service delivery. Information explosion and The ELMS has helped to build a digital new technologies are characterising platform that provides an interface between today's ever changing world. Libraries are the users and Library staff. The system has improved the quality of reports produced by a storehouse of knowledge and are Library staff. There are several benefits of important in todays' knowledge driven having a Library Management System as it society. In the age of information explosion, makes the Library operations more efficient. Library staff are able to clearly report to Libraries have to adopt these new management on various Library activities such as the usage of the Library information technologies in order to change their Ms Kamyalile Chileshe information storage, retrieval and services. materials. The use of an Electronic Library Management System is important for any Library in accelerating development efforts Libraries need to use the appropriate collects a lot of materials in print format, towards achieving any stated strategic plan. Information Communication Technologies which include books, periodicals, reports and Library staff support the objectives of the (ICTs) to ensure that vital information is magazines that provide important Central Bank’s strategic plan by providing available and accessible. information to support the core functions of easy access to vital information. The Bank of Zambia (the Bank) in fulfilment the Bank. However, these materials are not of its mission and objectives requires access cost effective in terms of space and The Symphony Module to information as a strategic corporate accessibility. Therefore, the Library has to Symphony is a powerful and flexible resource for informed actions at all levels. reposition itself to develop a collection that collection management system that can The Bank of Zambia Library plays an would efficiently meet users' needs in a cost greatly enhance the service delivered by the important part in meeting the information effective manner. The Library is moving Library. The Symphony is a component of the needs of the Bank and other stake holders. towards the provision of electronic Sirsi Dynix and is mainly used by Library Staff However, developments in information and information resources to supplement the in the provision of Library services. The communication technologies and other print collection. The sources of information Symphony explained in simple terms as the changes affecting information provision now need to be integrated to provide users ability of Library staff to use the ELMS to requires the Bank to adapt and reassess the with seamless access to information. In order circulate books to the users. Scanners and delivery of Library services. The Library to enable users to directly access and use a barcoded information materials are used to circulate books. The Symphony has been designed to reflect the policies and practices of the Library. It has been configured and customised in that it remains flexible in the provision of a wide range of functions. The symphony provides Library staff with a built in Content Management System (CMS) that is used for circulation, cataloguing, accounts managements, reports and serials management. User experiences may be customized with the use of profiles, self- registration and placing holds. My account enables users to view a column for the expiration date of hold pick-ups and the location of a particular information material. Patrons of libraries using the Symphony may select to receive various types of email or SMS alerts. The Symphony enables patrons to enter a subject when emailing item descriptions and lists to Library staff. To Page 45

32 ZAMBANKER September 2019 September 2019 ZAMBANKER 33 30 years of Central Banking Heart-warming employee stories

Mr Boma Mrs Msiska Mrs Sampa Mrs Lengwe

By Zambanker Reporter Sticking with anything for 30 years is no simple accomplishment. Years ago, it was common to start and end one's career with a single organisation. Nowadays however, employees regularly switch organisations for various reasons. The Bank of Zambia remains one such institution, where employees sometimes spend all their working lives during which they are continuously exposed and challenged to better ways of doing things.

In Human Resources Management circles, Mrs Mweempe Sampa joined the Bank on an employee and as a private individual.” serving one institution for a 30-year period 25th October 1989, in the Currency “I've not only been trained but I have also demonstrates confidence and stability. Mr Department as Note Examiner at Regional been given an opportunity to train and Andrew Boma, Mrs Towela Helen Lengwe, Office, she is Stores Officer. induct others into the operations of the Ms Mweempe Moolo Sampa, Ms Jane Ms Jane Sibande joined the Bank on 1st Bank. In short, the Bank has been more than Sibande and Mrs Pamela Msiska are among October 1989 as Note Examiner and she is a place of work to me. It has become my many Central Banks employees who have currently Clerk – Clinic Records. second family,” she said. spent three decades respectively. They have Talking about her experiences in the Bank, Meanwhile, Mr Boma says he is proud to been a staple at the Regional Office with Ms Sibande says 'my experiences at the Bank belong to and be associated with the Bank. institutional knowledge combined at more are that adaptability to the changing He says he considers it 'a greater honour and than a century. environment, dedication to duty, sincerity, privilege to be part of the few among many Mr Andrew Boma joined the Bank on 28th honesty, keeping in mind institutional goals aspirants that directly contribute towards September 1989, as a clerk in the are key to succeeding as a Central Banker. the Bank's Mission'. Administration Department. He is currently, Mrs Lengwe says I have been happy He adds that the trainings, social amenities Clerk - Day Book in Banking, Currency and working with the Bank because it has and various team building activities that the Payment Systems while Mrs Pamela developed in me persistence and strengthen Bank has put in place have been an enabler Msiska joined the Bank on 1st November to forge ahead even in the most challenging to keeping employees motivated. The Bank 1989 as clerk at Head Office. She is currently of circumstances. provides social and interactive activities Assistant Human Resources Officer. She was Mrs Msiska said that the Bank has through clubs such as chess, netball, in the foreign Operations Department at developed her into a better person both as football, scrabble and a few others. inception.

34 ZAMBANKER September 2019 Mrs Sampa says the Bank has provided her with ample opportunities to learn and develop her skills. She adds that the work environment has been friendly and supportive to her professional and personal growth. Most Enjoyable part of the Job Mrs Msiska - s o m e o f m y m o s t enjoyable moments in the Bank have for instance been, receiving an incremental Salary notch when I graduated with a Diploma. The increment motivated me to work even harder for my Degree. Further, HR is a service department and it makes me happy to interact with all members of staff. My position is unique in that it gives me an opportunity to know and understand h u m a n b e h av i o u r f ro m d i f fe re n t perceptives. I also have a rare opportunity to take new staff around the Bank and introduce them department by department! Mr Boma - the most enjoyable part of my job is the challenge to be on top of things all the Part of the 30 year team at a fundraising event in secondary school uniform time. In my Job, one cannot afford to make mistakes. You have to be alert and vigilant paralyze the functions of other departments friends and the recognition I get out of this is and that keeps me on my toes and makes me take my job very seriously. These beyond imagination! Everyday, I appreciate inquisitive! There is no down time. In habits have inadvertently trickled down to how much the clinic does in keeping the addition, I work with a team of dedicated, how I even manage a lot of things at home. It Bank's workforce and their immediate motivated and hardworking individuals has made me a better and much more families healthy. who always want us to succeed as a team as efficient planner, per our orientation because if one fails, the Ms Sibande - I enjoy my entire chain is affected. In short, Currency work because it provides me Accounts Division is full of positive energy an opportunity to show and I enjoy that! good quality patient care Mrs Lengwe –some of my most enjoyable and that among other moments are the experiences of my current things is very rewarding job wherein I have learnt to observe, serve to me. I have come to and engage members. My work requires a know a lot of people lot of patience as my clients always expect from my interactions me to exceed their expectations. For with staff, their instance, besides the standard operations, I families and am expected to organise and maintain the Zambia International Trade Fair (ZITF) as well as the Copperbelt show (CAMINEX) pavilions. These events form some of the major highlights in the dispensation of my duties as I am expected to cater for a diverse set of individuals who are nominated to participate at these exhibitions. Accordingly, I have come to appreciate the importance of staff from the junior most to the most senior officer because each plays a unique and important role in fulfilling the Bank's mandate. I work very closely with Maintenance staff, Office Services staff, Transport staff and among others. I was very skeptical of the Job when I was moved from Purchasing to Office Services. I barely understood the requirements and that made me jittery. However, the support I have received from management and all members of staff helped me settle pretty soon and I have come to understand and appreciate my role and what it means to keep an institution like ours functioning and being in the cleanest possible state. Mrs Sampa - being a Stores Keeper is a very interesting role and keeps me on my toes but I enjoy it because I have learnt and mastered the job! Knowing that you are serving many departments and being aware that what we hold in stores if not managed properly, can

September 2019 ZAMBANKER 35 Motivating others – boosting

are not insignificant but are superficial compared with more powerful motivators. your people skills Supervisors are encouraged to provide challenges, create a common mind-set, as well as set up chances to learn and grow. By Siphiwe Namposha Mwaba Greater things happen when people are Use goals to motivate Most people are turned on by reasonable motivated. Most supervisors believe their goals. They like to measure themselves teams should be automatically motivated against standard. and that thinking about motivation comes They like to see who can run the fastest, standard with the person. However, this is work the best. People like goals that are realistic and stretchy. People are even seldom the case, the fact is that each person more motivated when they participate in is different in the way that he or she setting goals. becomes and sustains being motivated. Ms Siphiwe Mwaba What Drives People? What they do first, what they emphasize in When you think about it, the success of any Follow the basic rules of inspiring their speech, what values play out for them. facet of any business or institution can others People might focus on details, concepts, almost always be traced back to motivated Communicate to people that what they do feelings or other people in their speech. employees. Unfortunately, motivating is important. This again can tell you how to appeal to people is far from an exact science. Provide autonomy in how people do their them by mirroring their speech. There's no secret formula, one employee work and provide a variety of tasks. You need to know what people's hot may be motivated only by money, and Surprise people with enriching, buttons are because one mistake can get another may appreciate personal challenging assignments and show you labelled as insensitive with some recognition for a job well done. Still interest in their careers. people. The only cure here is to see what another may work harder if he or she has Adopt a learning attitude towards turns up the volume for them. equity in the business. mistakes, celebrate successes and have But you can boil down employee visible accepted measures of achievement. Turn Off your Judgement Program – in motivation to one basic ideal: finding out trying to reach someone, try not judging what your team members want and finding Know and play the motivation odds them, you don't have to agree, you just have a way to give it to them or to enable them to According to research by Rewick and to understand in order to motivate them earn it. Lawler, the top motivators at work are; I gathered some of the most interesting ranked in that order Be able to speak their language at their motivational techniques from Robert 1. Job Challenge level – this shows respect for their way of Bolton and Thomas Peters in their books 2. Accomplishing something worthwhile thinking. People Skills and Thriving on Chaos 3. Learning New things Speaking their language makes it easier for respectively. 4. Personal Development them to talk with you and give you the The techniques are listed below and I hope 5. Autonomy. information you need to motivate. these techniques are something we can Pay (12th) Friendliness (14th) Praise (15th) apply as we manage our teams. To Page 38

Current and a former member of staff at a team building activity recently

36 ZAMBANKER September 2019 Career Trends Director Economics Department, Dr Francis Chipimo has been appointed Deputy Governor – Operations following the appointment by His Excellency, President Mr Edgar Lungu of former Deputy Governor – Operations, Dr Bwalya K.E Ng'andu, as Minister of Finance. Dr Ng'andu's appointment was with effect from 15th Dr Francis Chipimo - Deputy Governor - Operations July, 2019. Consequential adjustments Dr Bwalya K.E Ng'andu - Minister of Finance have been made to senior staff alignment. Notable changes are: the movement of Dr Jonathan Chipili to Economics from Financial Markets at the same level of Director, and the appointment of Mr Isaac Muhanga as Director for Financial Markets. Mr Muhanga was Assistant Director, Financial Stability.

Dr Jonathan Chipili - Director Economics Mr Isaac Muhanga - Director Financial Markets

Change of Job titles: General Counsel & Deputy General Counsel

The job title of Director – Legal Services has been changed to General Counsel while the position of Assistant Director - Legal Services has been changed to Deputy General Counsel effective 27 Dr Kalinde - General Counsel Ms Helen Banda - Deputy General Counsel August 2019.

September 2019 ZAMBANKER 37 The following have been promoted to Assistant Director Level with effect from 27 August 2019

Dr Wilson Phiri PREVIOUS POSITION: Senior Dr Wilson Phiri Economist – Monetary Sector (BOZM6) Ms Florence Pandala NEW POSITION: Assistant Director – Macro Economic Analysis (BOZM7) Assistant Director

Ms Florence Pandala PREVIOUS POSITION: Accountant – Back Office Treasury Operations (BOZM6) NEW POSITION: Assistant Director – Back Office Treasury Operations (BOZM7)

Mr Happy Mulwe PREVIOUS POSITION: Performance Management Specialist (BOZM6) NEW POSITION: Assistant Director – HR Operations and Performance (BOZM7)

Mr Nayoto Moola PREVIOUS POSITION: Manager – Security Operations (BOZM6) Mr Happy Mulwe NEW POSITION: Assistant Director – Mr Nayoto Moola Security (BOZM7) Motivating others – boosting your people skills From Page 36 Turn a negative into a motivator - If a no better sales person than one who loves Bring him/her into your world - Tell person is touchy about something, he/she their job and sings its praises. your team members your conceptual will respond to targeted help. If someone is By putting employees first, the customer categories. The team needs to know how demotivated, look to both personal and effectively comes first by default, and in the supervisor thinks and tell them your work causes. This person may respond to a the end, the shareholder comes first by perspective – the questions you ask, the job challenge, help them see how things default as well. Demotivation therefore factors you are interested in. work. goes beyond customer satisfaction, company profitability and decreased Motivating is personal - Know three The easiest way to motivate someone is productivity. non-work things about everybody, their to get him/her involved deeply in the It's fairly certain that if people are interests and hobbies or their children or work he/she is doing. Delegate and motivated, they're going to put in more something you can chat about. If you ask empower as much as you can. Get your discretionary effort. This will lead to people a few personal questions, you will team members involved in setting goals higher performance, happier customers, find you have something in common with and determine the work processes to higher productivity and higher employee virtually anyone. achieve these goals. engagement. Having something in common will help Ask the team's opinions about decisions you bond and grow relationships and that have to be made, share the team's Siphiwe N. Mwaba is Manager –Shared allow you to individualise how to success, debrief the failures together. Services and Compensation in the motivate. According to Sir Richard Branson, there is Human Resources Department

38 ZAMBANKER September 2019 In line with the Bank of Zambia Staff Rotation Policy, the following changes have been made at Assistant Director Level. The movements are with effect from 14 August 2019

Mr Ivan Zyuulu Previous Position: Assistant Director – Balance of Payments and Debt (Economics Department) New Position: Assistant Director - Balance of Payments Monitoring Mr Ivan Zyuulu (Economics Department) Ms Angela N Chileshe

Ms Angela N Chileshe Previous Position: Assistant Director – Currency Management (Banking, Currency and Payment Systems Department) New Position: Assistant Director – Information and Statistics (Economics Department)

Mr Steven Musuku Previous Position: Assistant Director – Regional Office (Regional Office) New Position: Assistant Director – Balance of Payments and Debt (Economics Department)

Mr Douglas Kalamatila Previous Position: Assistant Mr Steven Musuku Director – Market and Risk Mr Douglas Kalamatila Analysis (Financial Markets Department) New Position: Assistant Director – Domestic Market Operations (Financial Markets Department) Ms Nancy Mwilwa Previous Position: Assistant Director – Domestic Market Operations (Financial Markets Department) New Position: Assistant Director – Foreign Market Operations (Financial Markets Department)

Dr Musonda Simwayi Previous Position: Assistant Director – Security (Security Division) New Position: Assistant Director – Change Management and Innovation (Strategy and Risk Management Dr Musonda Simwayi Ms Nancy Mwilwa Department)

September 2019 ZAMBANKER 39 Mr Goodson Kataya Previous Position: Assistant Director – Foreign Market Operations (Financial Markets Department) New Position: Assistant Director – Financial Stability (Financial Stability Unit)

Ms Brenda Mwanza Previous Position: Assistant Director – Information and Statistics (Economics Department) New Position: Assistant Director – Financial Sector Development (Non-Bank Financial Institutions Mr Goodson Kataya Supervision Department) Ms Brenda Mwanza

Mr Mbinga Kafunya Previous Position: Assistant Director – Examinations and Surveillance, Portfolio A (Non- Bank Financial Institutions Supervision Department) New Position: Assistant Director – Regulatory Policy, Licensing and Liquidations (Non-Bank Financial Institutions Supervision Department)

Ms Mankolo Beyani Previous Position: Assistant Director – Regulatory Policy, Licensing and Liquidations (Bank Supervision Department) New Position: Assistant Mr Mbinga Kafunya Director – Examinations and Ms Mankolo Beyani Surveillance, Portfolio A (Non- Bank Financial Institutions Supervision Department)

Mr Raphael Phiri Previous Position: Assistant Director – Maintenance (Procurement and Maintenance Services Department) New Position: Assistant Director – Currency Management (Banking, Currency and Payment Systems Department)

Mr Zifa J Mphande Previous Position: Assistant Director – Regulatory Policy, Licensing and Liquidations (Non-Bank Financial Institutions Supervision Department) New Position: Assistant Director – Banking Mr Raphael Phiri (Banking, Currency and Payment Mr Zifa J Mphande Systems Department)

40 ZAMBANKER September 2019 Mr Musapenda Phiri Previous Position: Assistant Director - Financial Sector Development (Non-Bank Financial Institutions Supervision Department) New Position: Assistant Director – Regional Office (Regional Office)

Mr Paul Muyinda Previous Position: Assistant Director – Back Office Treasury Operations (Finance Department) New Position: Assistant Director – Regulatory Policy, Licensing and Liquidations (Bank Supervision Department) Mr Musapenda Phiri Mr Paul Muyinda

Mr Emmanuel Malukutila Previous Position: Assistant Director – Internal Audit (Internal Audit Department) New Position: Assistant Director – Enterprise Risk Management (Strategy and Risk Management Department)

Ms Edith Kabalika Previous Position: Assistant Director – Banking (Banking, Currency and Payment Systems Department) New Position: Assistant Director – Internal Audit (Internal Audit Department) Mr Emmanuel Malukutila Ms Edith Kabalika

Ms Marjory Mumba Previous Position: Assistant Director – Change Management and Innovation (Strategy and Risk Management Department) New Position: Assistant Director – Shared Services and Employee Relations (Human Resources Department)

Mr Maulu Hamunjele Previous Position: Assistant Director – Balance of Payments Monitoring (Economics Department) New Position: Assistant Director – Seconded to Special Projects – Credit Union Ms Marjory Mumba Mr Maulu Hamunjele

September 2019 ZAMBANKER 41 'We welcome constitutional refinement' From Page 15 merged to provide that a public officer time. It is thus the Bank's considered view holding a Constitutional Office who seeks that the checks and balances provided in the election, or is appointed, to a state office National Assembly and Constitutional Court shall resign. It is also our considered view oversight in the current Constitution are that the cooling off period of 2 years is not progressive in our democratic dispensation only too long, but is also discriminatory as it as they contribute to ensure that only the relates to constitutional office holders and suitably qualified candidates are appointed does not apply to the entire public service. and beneficial measures are implemented. Since the cooling off period is a derogation of the affected person's right to participate in vii. Section 38 of the Bill proposes to the governance of their country, perhaps a amend the Constitution Act by insertion much lower period of say six months to one of a new Article 117A, which gives power year may be more justifiable. to the President to appoint Deputy Ministers. Section 69 of the Bill Proposes to amend This provision will add to the cost of running Article 193(1) of the Constitution Act by Government as these office bearers will be providing for the establishment of the an additional charge on Government Anti-Drugs, Economic and Financial revenues, which can be well utilized to Crimes Agency. improve delivery of social benefits to the We note that the specific roles of the Anti- citizenry. Drugs, Economic and Financial Crimes It is also not clear how the current Agency have not been stated as is the case arrangement has prevented Government's for all others created by the same Article, ability to function effectively and efficiently. such as, the Zambia Police Service (Article We firmly believe that efforts towards 193(2), Zambia Security Intelligence efficiency and effectiveness in service Service (Article 193(3), and the Zambia delivery must target the technocrats who Correctional Service (Article 193(4)). are the implementers of Government Policy. It is our considered view that in the absence of clearly stated mandate of this Agency there is likely to be operational interference viii. Section 55 of the Bill proposes to with the existing Drug Enforcement repeal and replace Article 158 of the Commission and the Financial Intelligence Constitution Act dealing with by- Section 65 of the Bill proposes the Centre, which have been recognised elections for Mayor, Council Chairperson internationally as doing good work for the deletion of Article 184(2)(d), which and Councillor. country. We note that while Article 158 of the makes Permanent Secretaries to be Constitution Act is being repealed, there is responsible and accountable for the Section 74 proposes to repeal and no corresponding replacement of the Article proper financial management and replace Part XVIII of the Constitution Act and thereby leaving a lacuna in the law as to e x p e n d i t u r e o f p u b l i c m o n i e s without replacing the Gender Equity and what should happen whenever there is a appropriated. Equality Commission vacancy in the office of the Mayor, Council It is our considered view that the Article We note that the proposed Article 216(1) is Chairperson, and Councillor. proposed to be deleted goes a long way in broad enough as an enabling provision for We propose that there should be provision improving accountability of public funds by the establishment of any commission, such in the Constitution for Parliament to making the Permanent Secretary personally as, the Gender Equity and Equality prescribe how a vacancy in these offices will responsible for this task. Its deletion Commission. However, the repeal without be filled. without a corresponding placement of this replacement of the Gender Equity and important obligation on another office may Equality Commission may be construed as a ix. Section 61 of the Bill proposes erode gains so far made towards public relegation of its importance and a walk back amendments to Article 176 of the finance management. on the country's international and national C o n s t i t u t i o n A c t d e a l i n g w i t h commitments towards gender equity and qualifications for the Secretary to the Section 66 of the Bill proposes equality. Cabinet. amendments to Article 186 dealing with Equity and equality remain part of our We note that the proposed amendment participation of public officers in politics. national values and principles under Article repeals the requirement for a candidate to While the proposed amendment speaks to 8 of the Constitution Act and the the office of Secretary to the Cabinet to have the introduction of a time limit for resigning, establishment of the Gender Equity and previously served for at least 10 years as there is lack of clarity on whom the Article Equality Commission in the Constitution is Permanent Secretary or equivalent rank applies to in light of Article 186(2) which an important statement of the importance before appointment. qualifies that it applies to Constitutional the country places on gender equity and It is our considered view that this Office Holder. equality. amendment dilutes the qualifications to that Constitutional office holders, according to We are equally alive to the important and office considering the pivotal role played by Article 266 are only the Attorney General, unique role that gender equity and equality the office in the public service. Solicitor General, Director of Public play in the economic development of any We also note that the Bill has not defined the Prosecutions, Public Protector, Secretary to country. We therefore propose that the new qualifications of having served in senior the Cabinet, Secretary to the Treasury and Gender Equity and Equality Commission be management in the public service for one to Permanent Secretaries. retained in the Bill so as not to erode the qualify for appointment as Secretary to the To eliminate the ambiguity, we would gains made towards gender equity and Cabinet. propose that Articles 186(1) and 186(2) are equality.

42 ZAMBANKER September 2019 New Faces By Zambanker Reporter Separations The Bank of Zambia has recruited nine members of staff in the third quarter of 2019. Departments that benefited from the By Zambanker reporter recruitment are Internal Audit, Information and Seven (7) members of staff have separated from the Bank Communication Technology (ICT) and Economics. through political appointment, voluntary early separation and On 29th July, 2019, seven new members of staff retirement. joined Economics Department as Statistical Officers. Two are based at Regional Office while D r B w a l y a N g ' a n d u five are based at Head Office. in the Information and Those who joined the Regional Office Economics separated from the Bank on C o m m u n i c a t i o n th team are Ms Moono Basila and Mr Gabriel 15 July, 2019 following his Technology Department at Musonda while Mrs Victoria Hamaleka, Mr appointment as Minister of the time of his separation. Evance Jeri, Mrs Theresa Chibwe, Mr Patrick Finance. He was Deputy He joined the Bank on 5th Mulenga and Mr Bright Chansa joined the Head Governor - Operations at December, 1988. Office team. the time of his separation. He joined the Bank on 3rd Ms Moono Basila joined the October, 2011. Economics - Regional Office team as a Statistical Assistant – Ms Grace Longwe retired Research. She holds a Bachelor th M s B e r t h a C h i s o l a on 27 July, 2019 after of Economics (Honours) degree separated from the Bank working for slightly over 27 from the University of Namibia. through voluntary early years. She was a Security She worked for Zambia Revenue st separation on 31 July, 2019 Officer – Operations at Authority as a Research after working for over 15 Regional Office at the time Assistant - Research and Policy before joining the Bank. years. She was a Senior of her separation. She Internal Auditor in the th joined the Bank on 13 Mr Evance Jeri joined the Economics team at Internal Audit Department April, 1992. Head-Office as a Statistical a t t h e t i m e o f h e r th Assistant – Database. He holds a separation. She joined the Bank on 15 Ms Diana Chisulo separated Bachelor of Science (Honours) December, 2003. from the Bank through degree in Economics from the voluntary early separation Lovely Professional University B a n k S u p e r v i s i o n on 30th July, 2019 after in Punjab, India. He worked for the Central Statistics Office as a D e p a r t m e n t l o s t o n e working for over 30 years. employee in the name of Ms Statistician before the joining She was an Assistant the Bank. Marble Sikanyiti. Ms Director – Support Services Sikanyiti separated from the at Regional Office at the time of her Ms Theresa Mwale Chibwe Joined the B a n k t h r o u g h e a r l y separation. She joined the Bank on 9th Economics team at Head-Office rd retirement on 23 July, 2019 December, 1988. as a Statistical Assistant - after working for slightly Private Capital Flow. She holds a over 18 years. She was an M s R h o d a M u s o n d a Master of Arts (MA) degree in Economics and a Bachelor of Inspector – Inspections at the time of her separated from the Bank separation. She joined the Bank on 2nd April, Arts (BA) degree in Economics, through early retirement on both obtained from the th 2001. 27 September, 2019 after University of Zambia. Prior to working for close to 37 joining the Bank, she worked as Mr Robert Banda separated from the Bank years. She was a Stores an Executive Assistant to the CEO at MCA- th through early retirement on 5 September, Officer at Regional Office at Zambia. She has also worked as a Junior 2019 after working for over 30 years. He the time of her separation. Researcher, Trainer, Supervisor and Research was Assistant Manager – Service Continuity th Assistant with institutions such as the She joined the Bank on 20 University of Zambia, International Labour October, 1982. Organisation (ILO) and German International Cooperation (GIZ). Ms Chibwe also worked as a tutor of Economics in the Economics Obituary department of the University of Zambia. She is a member of the Economics Association of By Zambanker reporter Zambia (EAZ). The Bank of Zambia lost one member of staff in the third quarter of 2019 through Mr Patrick Mulenga joined the Economics team as a Statistical Officer – a road traffic accident. Mr Oliver Ndhlovu th Research. He holds a Master of died on 6 August, 2019. He joined the Arts degree in Economics with st Bank on 1 November, 1989 as a Cheque specialisation in Monetary Processing and Clearing Clerk. He was a Economics and International Statistical Assistant - Field Surveys in the Finance from the University of Economics Department at the time of his Zambia (UNZA). He also has a demise. Bachelor of Arts degree in Economics from UNZA, a May His Soul Rest in Eternal Peace certificate in Investment and Finance from To Page 46

September 2019 ZAMBANKER 43 Frequently Asked Questions (FAQ) About Payment Systems In Zambia

Introduction A number of payment system options are available for both individual and organisational customers to use to transfer funds. While there is a high dependency on and usage of cash as a means of making payments, a number of alternative electronic payment options are available that are secure, efficient and convenient.

To provide overall clarity on inquiries, this the proposed system, risk management write up clarifies and answers some of the processes, the financial status of the most frequently asked questions about applicant, experience of the applicant's payment systems in Zambia. management team, integrity of the applicant, consumer interests, monetary Q1. When did the National Payment and credit policies and other relevant Systems (NPS) Act come into effect? factors. The National Payment Systems Act 2007 Additionally, the Bank of Zambia will was enacted in 2007 and came into force require that the applicant also puts in on 12th April, 2007 by an Act of place measureS and is able to demonstrate Parliament. capability to safeguard its customers against fraud, ability to monitor Q2. What is the objective of the National transactions for money laundering and Payment Systems Act? t e r r o r i s m f i n a n c i n g . A n o t h e r The NPS Act, 2007 provides for the consideration made by the Bank of Zambia management, administration, operation, relates to the measures put in place by the supervision and regulation of payment, applicant to ensure that its business and clearing and settlement systems in system are able to continue operating with Zambia. The Act also empowers the Bank minimal disruption even in the event of a of Zambia to develop and implement disaster. This ensures that such disruption payment, clearing and settlement systems do not impact its customers. The Bank of policies that aim to promote efficiency, Zambia also makes other considerations stability and safety of the Zambia financial that are dependent on the type of system. for authorisation? application being made. A sum of K1,000 for Payment System Q3. What is a "Payment System" under Businesses and Participants and K1,500 Q7. What is the RTGS System? the NPS Act, 2007? for Payment Systems is required to be The acronym 'RTGS' stands for Real Time The NPS Act 2007 defines a payment submitted as application fee, which can be Gross Settlement, which can be defined as system to mean a 'clearing and settlement submitted by cheque or electronic fund the Real Time Gross Settlement of funds system operating under clearing house transfer in favor of the Bank of Zambia. transfers individually on an individual rules.' Payment systems enable payments The Act defines a Payment System payment instruction basis (without to be effected between a payer and a Business as a business providing money netting). The other commonly used term beneficiary, involving clearing, payment or transfer services, e-money issuances and for the RTGS system in Zambia is the settlement service or all of them. other forms of business as may be deemed Zambia Interbank Payment and so by the Bank of Zambia. A Payment Settlement System (ZIPSS). 'Real Time' System on the other hand has been defined means the processing of instructions at Q4. Are entities operating a payment as an infrastructure that has been set up to the time they are received rather than at system or intending to operate a offer clearing or settlement services. some later time; 'Gross Settlement' means payment system required to get a Further, the Act defines a Participant as a the settlement of funds transfer license, approval or authorisation for member of a payment systems. instructions occurs individually (on an the purpose? Additionally, the applicant may pay instruction by instruction basis). In terms of Section 7 and Section 12 of the security clearance fees for its executive Considering that the funds settlement NPS Act 2007 no person can operate or and board members. takes place in the books of the Bank of commence a payment system unless Zambia where commercial banks hold authorised/designated by the Bank of Q6. What are the factors which the their settlement accounts, the payments Zambia. Any person desirous of Central Bank will consider while are final and irrevocable. Due to its critical commencing or operating a payment deciding on an application submitted nature to the industry and the economy at system needs to apply for designation for authorisation/designation? large, the RTGS system is operated and under the NPS Act, 2007 (Section 7 and maintained by the Bank of Zambia. 12). In evaluating an application, the Bank of Zambia will consider several factors such as the technical standards and design of Q8. How is the RTGS different from Q5. Is there any application fee to be proposed system, the security procedures, Electronic Funds Transfer System submitted along with the application the terms and conditions of operation of (EFT)or Direct Debit and Direct Credit

44 ZAMBANKER September 2019 Clearing (DDACC)? An EFT/DDACC is an electronic fund transfer system that operates on a The Electronic Library Deferred Net Settlement (DNS) basis and settles transactions in batches. With DNS systems, transactions are processed in Management System: multiple batches or sessions in a day, while RTGS transactions settle in a continuous www.sciencedirect.com. manner thus RTGS transfers tend to be Other major databases include EBSCOHOST, faster and in real time. For example, EFTs Sirsi Dynix JSTOR, Emerald and the IMF library. These in Zambia are currently processed in four databases provide information that From Page 32 (4) sessions. Additionally, while an upper supports research and organisational value limit has been stipulated on EFTs, no Sirsi Dynix Enterprise learning needs of Bank. These databases such caps exist on for RTGS transfers. The Sirsi Dynix Enterprise features a empower users to stay informed in their search and discovery tool which field and be able to work more effectively highlights the full potential of all the Q9. Is there any minimum/maximum and efficiently. Library's content with a single search that The Library intends to introduce a a m o u n t s t i p u l a t i o n f o r RTG S spans the Library databases, physical collection of electronic books (eBooks) for transactions? catalog, and digital catalog. It gives the first time in the Bank. Access to eBooks The RTGS system cover both large value accurate, human-friendly results and a is fundamental for supporting research, and small value payments that are time customisable look-and-feel that lifelong learning and general information critical or urgent. Currently, the RTGS integrates with the Library website. among readers. These eBooks will system is the only system for domestic Library users may use the Enterprise to supplement the print collection and will add payments where there is no stipulation of place holds and reservations on specific value to the collection. In order to develop a minimum or maximum amount of funds Library items. The Enterprise module will its collection. that can be transferred through it. provide an electronic interface between Maintaining a wide collection of e-books the Library users, Library staff and the and making them available to the widest Q10. Is the RTGS available to members LMS. The Enterprise is connected to possible audience will ensure usability of of the public? Symphony using Web Services. It the resources and a well-informed Yes, members of the general public can provides a powerful fuzzy-logic search workforce that makes quality decisions. The transfer funds via the RTGS using their engine with faceted limiting of results. Library webpage may be accessed through commercial banks. However, it should be The BlueCloud Discovery would enhance the followingURL: http://10.1.0.95 noted that only commercial banks are can the Sirsi Dynix Enterprise with features of /client/en_US/U/ transfer funds through the RTGS system. Portfolio which adds digital assets to search results. Additional features would Conclusion Q11. What is the time taken for include the use of Electronic Resource The introduction of the Electronic Library effecting funds transfer from one Central (eRC) which adds eBooks and M a n a g e m e n t Sys te m ( E L M S ) h a s account to another under RTGS? eAudios to search results. The BLUEcloud contributed to efficient Library operations Under normal circumstances the PAC is another feature that adds new free as most of the functions are automated. beneficiary branches are expected to entry-level discovery. The webpage has been a platform used to receive the funds in real time as soon as promote materials as well as a search tool funds are transferred by the remitting The Online Catalogue for Library users to know what the Library bank. Once remitted, the beneficiary is The Library has improved from using a stocks. In order to increase usage of the expected to be credit the funds almost manual card catalogue to an online Library Information resources, various immediately (i.e. on a real time basis) catalogue. The Electronic Library awareness strategies will be embarked on Management System (ELMS) enables using the ELMS. The ELMS has provided a Q12. What time is the RTGS service users to access the Library collection via platform for the visible presentation of their workstations. window available? Electronic databases that the Bank The Online catalogue facilitates access to The RTGS service window for customer's subscribes for. all information materials held by the transactions is available to banks from T h e u s e o f m o d e r n I n fo r m a t i o n Library from a link hosted on the Bank's Communication Technologies (ICTs) has 08.15 hours to 16.00 hours on week days, intranet. Library users do not need to greatly contributed to the provision of meaning commercial banks are able to come to the Library, thereby saving time modern, updated Library services that aim process payments on behalf of customers and in a way increasing productivity and at meeting the information needs of users. on the RTGS system within those time efficiency of Bank time. Access to the on-line catalog and the Library frames. However, commercial banks may webpage ensures that the staff are aware of stipulate closing times that are earlier The Library Webpage latest Library information resources. Going than 16:00hrs to take into account their The Library webpage features various forward, the Library hopes to embark on own internal procedures and in links to subscribe to electronic databases, ways of developing a virtual Library and an accordance with business operating hours open access resources as well as digital electronic institutional repository via the of their branches – this is regardless of libraries. Access to electronic databases is Electronic Library Management System whether the payment instructions are enabled using computers connected to (ELMS). lodged in manually or captured through the Bank's network. The benefits of using ICTs to enhance electronic platforms such as interbank or These databases provide users with full- Library service provision greatly outweigh mobile banking. That means payment text information solution offering journal those of using traditional and printed instruction lodged in after the cutoff articles and book chapters which are information materials. stipulated by the commercial banks are peer-reviewed content. Science Direct is likely to be processed and settle the one of the main electronic database that Kamyalile Simuchiba Chileshe is Chief following business day. the bank subscribes to and is available via Librarian in the Economics Department

September 2019 ZAMBANKER 45 New Faces From Page 43 RO crushes HQ Zambia College of Pensions and Insurance Trust (ZCPIT) and another certificate in financial modeling with excel from Zambia Centre for By Zambanker Reporter Accountancy Studies. He worked for the The Kwacha outfit (Regional Office), beat the Blues (Head office) 3 Industrial Development Corporation (IDC) as a goals to 2 at an exciting game played at Levy Mwanawasa Stadium Junior Analyst - Business Development before joining the Bank. Mr Mulenga is a member of in Ndola recently, breaking the record in which head office has the Economics Association of Zambia. always emerged winner. Mr Bright Chansa joined Economics Department as a Statistical Officer – Database. He holds a The footballers from Ndola included Kedrick and wining most of them but head office has Bachelor of Science degree in Zombe, Musa Dube, Justine Sichunda, proven to be a real nightmare. Economics from the Copperbelt Katukula Mwela, Skinner Moya, David “Musa Dube, Justine Sichunda, Katukula University, certificate in Investment and Corporate Kampamba, Felix Goma, Godfrey Goma, Mwela, Skinner Moya and David Kampamba Finance from Zambia College of Vernon Siputuma, Hezron Banda, Mathews were so sharp on the mark and made Pensions and Insurance Trust Chizu and Robert Mtonga while the Blues Regional Office very proud. I think we have a (ZCPIT) and is currently were represented by Handiya Mweemba, very talented team that played Head Office,” pursuing a Master of Arts Musonda Simwayi, Otis Chirwa, Phillip espoused Mr Mulenga. degree in Economics with the Lungu, Elijah Chisukulo, George Zulu, Speaking after being on the wrong end of the University of Zambia. Mr Chansa worked as a Mickey Phiri, Muchimaezi Mulasikwanda, Kwacha thumping, Mr Patrick Luvota, Junior Analyst – Investment at the Industrial Peter Phiri, Lemana Mufishi, Ismael Industrial Relations Officer encouraged Development Corporation (IDC). He also Bungwa, Andrew Sikena, Kawana Banga, more employees to take part in sporting worked at the Information and Communications University as an Economics Tutor. Patrick Michelo, Silas Kabwe and Martin activities as it provided an avenue for Chimwayi. Kwacha team members were organizational team building and keeping Mr Chapanga Siame joined the Internal Audit happy that their nightmare of losing to Head fit. He thanked everyone who made it for the team on 9th September, 2019 as an Internal Office was finally over. The Kwacha games and in particular those that had Auditor. Mr Siame holds a Bachelor of outfitters have in the recent past played travelled from Lusaka. Accountancy degree from the Copperbelt against some of the most formidable teams Mr Luvota thanked Assistant Director University (CBU). Before joining on the Copper belt including Zambia Security, Dr Musonda Simwayi for his the Bank, he worked for Breweries whom they drown 4:2, unwavering support for sports and thanked L a w r e n c e S i k u t w a a n d the Ndola Mandalas which they aged 2:1 and Human Resources Department for making Associates (LSA) Group of the Teachers who they taught 3:1 lessons. the tournament possible. He also thanked Companies as Internal Audit Manager where he supported Mr Brian Mulenga, Assistant Accountant – Regional Director, Mr Visscher Bbuku for the the Group's subsidiaries Trade Payments at Regional Office who is warm reception given to the Blues in Ndola comprising among others: also Team Chairperson/goal keeper of the and was looking forward to a rematch with Madison General Insurance, Kwacha football outfit explained that his Head Office hosting their Ndola partners in Madison Life Insurance, Madison Finance, team had been training hard, playing games Lusaka. Madison Asset Management Company and Madison General Insurance Tanzania in Audit, Risk and Compliance. He is a member of the Zambia Institute of Chartered Accountants and the Institute of Internal Auditors.

Mr Christopher Mwale joined the Information and Communication Technology (ICT) Department on 24th September, 2019 as Manager – ICT Security and Compliance. He holds a Bachelor of Engineering Degree from the Copperbelt University and an MBA from the Eastern a n d S o u t h e r n A f r i c a n Management Institute (ESAMI). He is certified in Risk and Information Systems Control (CRISC), an EC-Council Certified Security Analyst (ECSA), Certified Ethical Hacker CEH, EC-Council Certified Incident Handler (ECIH) and ISO27001-Lead Implementer. Mr Mwale worked for PTA Bank as Senior Information Services Officer in charge of cybersecurity, service delivery and IT infrastructure before joining the Bank. He is a member of the Information Systems Audit and Control Association (ISACA), ICT Association of Zambia (ICTAZ).

The two teams greeting before the match

46 ZAMBANKER June 2019 Accessible – can be used on ATM belonging to other banks or even outside the country when used on supported VISA, MasterCard, UnionPay etc terminals.

POINT OF SALE A Point of Sale (POS) terminal is an electronic data capture machine which facilitates acceptance of a payment from a customer by Electronic Payment swiping his/her debit/ credit/pre-paid cards on the POS terminal for purchase of goods and services sold by a merchant.

BENEFITS Methods In Zambia ?A customer does not need to carry cash which can be risky; ?Low costs for the customer as most A number of payments systems are available in Zambia that can transactions are free of cost; be exploited by individuals and enterprises. A payment system is ?Point of sale devices provide faster service any system used to settle financial transactions through the than old fashioned cash registers; ?Point of sale devices can cut down on transfer of monetary value, and includes the institutions, human errors; instruments, people, rules, procedures, standards, and ?The merchant would avoid the cost of cash technologies that make such an exchange possible. in transit as the money is automatically credited to the merchants account; ?Risks associated with cash handling are There have been significant developments in significant time lag; avoided by both the customer and the the field of electronic payment methods in ?ZIPSS being a real-time settlement system merchant; Zambia and the Bank of Zambia wishes to means that funds become available on ?Customer expends exact amount required encourage the public to use these electronic appropriate accounts immediately. for goods or service (to the ngwee). payment methods as they are safer and more efficient than paper based instruments such EFT MOBILE PAYMENTS AND TRANSFERS as cash and cheques. Electronic funds transfer (EFT) is a simple, Mobile payments are payments undertaken Some of the alternative payment channels safe and speedy way to make and collect via mobile devices. Instead of paying with include the Real-time Gross Settlement individual or bulk payments by electronic cash, cheque, or credit cards, a consumer can (RTGS) system also referred to as the Zambia transfer i.e. direct debit and direct credit. Interbank Payment and Settlement System use a mobile device (mobile phone, tablet, etc.) to pay for a wide range of goods and (ZIPSS), Electronic Funds Transfers (EFT) BENEFITS services. commonly known as Direct Debit and Credit ?It can be used to pay wages, salaries,

Clearing (DDACC), Point-of-sale, Mobile pensions, utility bills, loan/interest BENEFITS payments and internet banking. payments, VAT Payments, Dividends, ?Convenience - It can be used to pay for Despite the developments in electronic savings plans, money transfers, premiums utility bills from the comfort of your home payment channels, Cash has remained the etc. e.g. electricity, DSTV, water bills and predominant means that people use to make ?Value for the transfer is given within purchase of airtime; payments in Zambia. Even though cash is 24hrs; ?Save time as you avoid queuing up to pay convenient, it is a very expensive means of ?No risk in getting mislaid or stolen cash; bills; making payments, that is, in terms of printing, ?Reduced administration costs; ?Safer - consumers no longer have to maintaining and distributing it. In order to ?The service is provided by almost all assume the security risks associated with reduce the cost of cash in the economy, it is commercial banks and is used by a cash; advisable that where possible people should number of service providers. ? always use electronic payments because of the Faster transactions; ?Lower cost of transaction; low cost, convenience, security, safety and CARDS ?Sending money to other people; efficiency that come with such mode of A debit, credit or pre-paid card is a plastic ?Ability to monitor account balance from payments. payment card that provides cardholders any location. electronic access to their bank account(s) at a TYPES OF ELECTRONIC PAYMENT financial institution. METHODS INTERNET BANKING Online banking also known as internet RTGS/ZIPSS BENEFITS banking, e-banking, or virtual banking, is an The ZIPSS is an electronic payment system ?Safety - you don't have to carry cash or a electronic payment system that enables owned and operated by the Bank of Zambia in chequebook; customers of a financial institution to conduct which processing of transactions for ?Easy to obtain - once you open an account a range of financial transactions through its settlement takes place continuously on a most institutions will issue you a debit website. transaction by transaction basis in real time. card upon request; ?Convenience - purchases can be made by BENEFITS BENEFITS swiping the card at a point of sale terminal ?It's generally secure; ?No minimum or maximum amount or online for internet purchases; ?You have twenty-four-hour access to your imposed and therefore customers are able ?Low cost - most purchase transactions account; to process both low and large value made by swiping a card are free of cost to ?You can access your account from virtually payments on ZIPSS; the customer; anywhere; ?Payments that are made on ZIPSS are final ?Secure – funds accessible by a Personal ?Conducting business online is generally and irrevocable; Identification Number (PIN) which has faster and more convenient than going to ?Due to the continuous nature of transfers, now been enhanced by integration with the bank. funds are available to the recipient with no an electronic chip (Chip and Pin).

September 2019 ZAMBANKER 47