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The Bank of Zambia (BoZ) has clarified which transactions remain exempt under the newly introduced Currency Regulations, offering relief and certainty to industries that rely heavily on foreign currency settlements.
Speaking at a Currency Regulations Stakeholders Meeting in Ndola, BoZ Director of Financial Markets, Isaac Muhanga, said the exemptions were intended to remove ambiguity and ensure smooth operations in critical sectors such as mining, finance, insurance, and tourism.
In the mining sector, Muhanga explained that taxes remitted to the Zambia Revenue Authority (ZRA) through sales of foreign currency to the central bank will remain exempt.
Transactions involving tolling services, inter- and intra-mine mineral sales, and procurement of specialised mining equipment and engineering services may also continue to be settled in foreign currency.
Tolls paid in foreign currency to government agencies will likewise remain unchanged, with BoZ confirming that existing arrangements will continue.
Muhanga further outlined exemptions for financial market obligations, including dividends, loan repayments, interest, debt instruments, and other products with a foreign currency component.
He said the revised regulations were expanded to explicitly cover investments, shares, and other structured instruments to avoid uncertainty.
Other exemptions apply to securities denominated in or structured with foreign currency that are regulated by the Securities and Exchange Commission (SEC) under the Securities Act of 2016. Similarly, financial services governed by the Banking and Financial Services Act of 2017, when structured in foreign currency, will continue to be permitted.
Life insurance policies regulated by the Pension and Insurance Authority (PIA) under the Insurance Act of 2021, if denominated in foreign currency, are also exempt.
In the tourism sector, non-resident foreigners will still be allowed to pay in foreign currency for services provided by enterprises registered under the Tourism and Hospitality Act of 2015.
Muhanga said the exemptions were designed to strike a balance between regulatory oversight and the practical realities of Zambia’s economy.
“This clarity is meant to ensure that critical sectors continue to function smoothly, while promoting financial stability,” he said.
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