BANKS
As the country looks to outside sources of funding to continue growing apace, Zambian banks play a crucial role in securing financing for infrastructure.

FNB Zambia has signed a tier-two facility with the FMO, a Dutch development bank, for USD15 million. We had such a facility in place prior to this, but we were coming to the end and sought to replace it with a similar-sized one to safeguard our capital structure. Tier two caters to the two main currencies we use in the country: the dollar and the kwacha. It is important to have a certain portion of capital in foreign exchange to offset any possible local currency depreciation, as was seen in 2016, and we were happy to have FMO invest in us. In December 2016, we did a further restructuring of our balance sheet, with a credit link note back to South Africa, which created profit for us. Aside from this, we have been concentrating on focused marketing strategies, with specific client niches and a drive to innovate and digitalize. It took us a year or two to have substantial liquidity to lend and gain the necessary market understanding.

One of the markers of economic growth is a booming construction industry. Indeed, in Zambia we see more and more large constructions springing up, especially in large cities. Stanbic has financed some of the largest infrastructure projects here, such as shopping malls, as we believe this is necessary for long-term economic development. Roads and shopping malls provide the platform for trade, communication, transport, and logistics. For example, we have partnered with the government in holding a number of events, such as the Infrastructure Symposium, to be held at the end of March 2017, which will look at the growth prospects of infrastructure, what needs to be done to build infrastructure, and what should be the priorities to boost the sector in the future. That is part of our corporate vision to provide thought leadership for Zambia's infrastructure industry. Moreover, Zambia only uses 20% of its arable land, meaning there is huge potential in the agriculture sector.

For any business, clocking in a quarter of a century is a commendable achievement, especially considering the cyclical volatility, challenging operating environment, and rigorous regulatory pressures that frontier economies can present. These past 24 months have certainly been tough, primarily due to cash-flow constraints brought on by government arrears and resulting in a deterioration in business portfolios in terms of asset quality, increasing costs of funds, and high interest rates. A decade ago, the Namibian Capricorn Group made a strategic decision to invest in Cavmont Bank, and our recent achievements are a manifestation of its capital and commitment to this entity, which is now beginning to present a more attractive prospect for our shareholders, with two consecutive years of profitability, which is highly commendable given the challenging economic landscape, and are on course to deliver our third. Cavmont Bank also received Zambia's first unsolicited credit rating with an investment A-grade. Coupled with profitability, this enables us to pursue capital markets activities and consider long-term DFI funding.

Ecobank commenced operation in Zambia in August 2009 during the period of the group's geographical expansion across Sub-Saharan Africa. The parent company, Ecobank Transnational Incorporated (ETI), was incorporated in 1985 as a Pan-African movement. ETI, which was initially set up by the members of the West African Chambers of Commerce and Industry, has now transformed into a truly Pan-African Banking Institution. Our largest shareholder currently is Nedbank of South Africa, followed by Qatar National Bank, the Public Investment Corporation of South Africa, International Finance Corporation, the investment arm of the World Bank, and SSNIT. These entities own between them almost 70% of the bank. The bank has grown its network and now has the largest footprint in Africa. Ecobank Zambia was set up during the period of geographical expansion for the group. Today, we have grown to eight branches, including several in Lusaka and three branches in the Copperbelt. At YE2016, our assets stood at over ZMK1.5 billion, putting the bank in 11th place in terms of size.

TABLE OF CONTENTS
Year In Review
What A Year
Zambia has long been a bastion of stability in Southern Africa, and while its economy has been rocked in recent years by the falling value of copper prices, a devaluating kwacha, and high inflation, through the Economic Recovery Program the government has bold ambitions to right the ship.
read articleReview
Convoke, Confound & Collect
Squeezed between a rock and a rather hard place by the slowdown in Chinese demand for copper, by far Zambia's biggest export and government-revenue generator, President Lungu has been forced to get creative in his country's alliances to broaden revenue streams and lessen its dependence on the vagaries of one foreign market.
read articleGuest Speaker
Dr. Stergomena L. Tax, Executive Secretary, Southern African Development Community (SADC)
TBY talks to Dr. Stergomena L. Tax, Executive Secretary of the Southern African Development Community (SADC), on regional economic development, boosting pan-continental free trade agreements, and improving security through mutual development.
read articleInterview
Susan Sikaneta, Ambassador, Zambia to Ethiopia & Permanent Representative to the African Union and Economic Commission for Africa
TBY talks to Susan Sikaneta, Ambassador of Zambia to Ethiopia & Permanent Representative to the African Union and Economic Commission for Africa, on championing peace across the continent, advancing women's rights, and promoting Pan-Africanism.
read articleInterview
Sebastian C. Kopulande, CEO, Zambian International Trade & Investment Centre (ZITIC)
TBY talks to Sebastian C. Kopulande, CEO of Zambian International Trade & Investment Centre (ZITIC), on taming austerity, stimulating sustainable growth, and creating the framework to support entrepreneurship
read articleFocus: Zambia Plus
Adding it All Up
On October 20, 2016, at the 2017 Budget Address, Finance Minister Felix Mutati launched the government's economic recovery program, christened "Zambia Plus." The program is designed to spur domestic productivity, through strengthening ties and collaborating with external donors and developers.
read articleReview: Banking
Macroeconomics Rule the Roost
In its ongoing efforts to diversify away from one principal commodity, copper, the government fosters the development, standardization, and efficacy of the private sector. In doing so the systematic support of the financial universe, especially banks, is vital, as is the goal of financial inclusion.
read articleFocus: SME Growth
IMF support program
An IMF support program stands to provide Zambia with some much-needed discipline on its expenditure and operational efficiencies; however, many caution the need for Zambia to determine what it wants to achieve and how the program will benefit the country.
read articleInterview
Christabel M. Banda, Executive Director, Insurers Association of Zambia (IAZ)
TBY talks to Christabel M. Banda, Executive Director of Insurers Association of Zambia (IAZ), on the evolution of the local insurance landscape, raising awareness, and tackling challenges in the sector.
read articleFocus: Solar
Sunny Side Up
As power demand continues to rise and power production continues to fall behind, it's the same old story for Zambia, still wrestling with an ongoing energy crisis. Public- and private-sector drives are seeking to mitigate this deficit by activating the country's solar industry.
read articleInterview
Margaret K. Chalwe-Mudenda, Director General, Zambia Information and Communications Technology Authority (ZICTA)
TBY talks to Margaret K. Chalwe-Mudenda, Director General of Zambia Information and Communications Technology Authority (ZICTA), on new projects, the ZNDC, and expectations for the year ahead.
read articleInterview
Hon. Dora Siliya, Minister, Agriculture
TBY talks to Hon. Dora Siliya, Minister of Agriculture, on the investments being made in agriculture to enable agricultural households, diversifying Zambia's basket of produce, and making international markets more accessible for local producers.
read articleInterview
Hon. Charles R. Banda, Minister, Tourism and Arts
TBY talks to Hon. Charles R. Banda, Minister of Tourism and Arts, on the wealth of tourism destinations within Zambia, efforts to bring more visitors to the country, and what the Tourism Development Fund will contribute to developments.
read article