Musokotwane says US$16 billion tracked under export proceeds framework

Finance and National Planning Minister, Situmbeko Musokotwane, says more than US$16 billion has passed through Zambia’s banking system since the introduction of the Export Proceeds Tracking Framework in January 2024.

The framework, jointly implemented by the Bank of Zambia (BoZ) and the Zambia Revenue Authority (ZRA), requires exporters to deposit all proceeds into local bank accounts. It became operational on January 1, 2024.

Presenting the 2026 national budget in Parliament on Friday last week, Musokotwane said the initiative has improved the accuracy of balance of payments data, which had previously been incomplete.

“The scope of the framework is being expanded to include trade in services and the tracking of imports,” he told lawmakers.

Read more: PSDA chair, Dodia, questions effectiveness of export proceeds tracking framework amid Kwacha’s steady decline

To bolster financial sector stability and safeguard depositors, the Minister announced that a Deposit Protection Scheme Bill will be brought before Parliament during the current session.

In addition, BoZ is expected to issue Banking and Financial Services (Deposit Protection) Rules before year-end.

“Under these rules, a fund will be established to pay out deposits up to a specified amount in the event of a financial institution’s failure,” Musokotwane explained.

On improving access to credit for small and medium enterprises (SMEs), he said government would continue de-risking SME lending through the Zambia Credit Guarantee Scheme.

He added that the central bank was finalising preparations for a K5 billion fund to support small businesses, which will be launched in the first quarter of 2026.

“The fund will provide credit guarantees through commercial banks and other financial service providers. It will also offer business development services and market linkage support,” he said.

Musokotwane further stressed that monetary policy will remain critical in maintaining price stability and returning inflation to the six to eight percent target range over the medium term.

“We will continue to strengthen the monetary policy framework, including reinforcing the use of the Kwacha in domestic transactions.

“The Bank of Zambia has conducted extensive consultations with stakeholders and will issue regulations by year-end, outlining exemptions and providing detailed guidelines,” he added.

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