ANNUAL REPORT 2019 REGISTERED OFFICES Head Offci e Regional Ofice Bank of Zambia, Bank Square, Cairo Road Bank of Zambia, Buteko Avenue, P. O. Box 30080, Lusaka,10101, Zambia P.O. Box 71511, Ndola, Zambia Tel: (+260)211399300 Tel: (+260)212399600 E-mail:
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[email protected] Website:www.boz.zm Website:www.boz.zm VISION To be a dynamic and credible central bank that contributes to the economic development of Zambia MISSION STATEMENT To achieve and maintain price and inancial system stability to foster sustainable economic development TABLE OF CONTENTS Board of Directors i Senior Management as at 31 December 2019 iii Governor's Overview viii Statement on Corporate Governance xi 1.0 Developments in the Global Economy 1 2.0 Domestic Macroeconomic Developments 4 2.1 Monetary Policy and Outcomes 4 2.2 Financial Markets 12 2.3 Balance of Payments 17 2.4 External Debt 23 2.5 Fiscal Sector Developments 24 2.6 Real Sector Developments 28 3.0 Financial System Regulation and Supervision 32 3.1 Banking Sector 32 3.2 Non-Bank Financial Institutions Sector 39 3.3 Consumer Protection and Market Conduct 48 4.0 Banking, Currency and Payment Systems 50 4.1 Banking Services 50 4.2 Currency Management 50 4.3 Payment Systems 53 4.4 Regional Cross Border Payment Systems 59 4.5 National Financial Switch 59 5.0 Strategy and Risk Management 61 5.1 Performance of the 2016-2019 Strategic Plan 61 5.2 The 2020-2023 Strategic Plan 61 5.3 Enterprise Risk Management 62 6.0 Human Resource Management 64 7.0 Bank of Zambia Financial Statements for the Year Ended 31 December 2019 67 8.0 2019 Statistical Annexures 76 BANK OF ZAMBIA ANNUAL REPORT 2019 Board of Directors1 DR.