Bank of Zambia to tighten export tracking as FDI surges to $2.36 billion, highest since 2017

Bank of Zambia (BoZ) Deputy Governor – Operations, Dr. Francis Chipimo, says the central bank will intensify enforcement of the export proceeds tracking framework following continued gaps in compliance for the year 2025.

Speaking during the dissemination of the 2025 Foreign Private Investment and Investor Perception Survey, Chipimo said reconciliation rates under the export tracking system remained too low, prompting the need for stronger follow-ups with financial institutions.

Delivering a speech on behalf of BoZ Governor Dr. Denny Kalyalya, he said the BoZ would also advance work on tracking services and import payments, with progress expected later this year.

Chipimo further addressed the newly issued currency directives effective December 26, 2025, stating that they reinforce Section 18 of the Bank of Zambia Act, which requires the Kwacha to be used as legal tender for domestic transactions.

He said the directives were issued after extensive consultations and were intended to support monetary policy transmission and financial stability.

The Deputy Governor noted that high levels of dollarisation weakened the effectiveness of monetary policy and increase economic vulnerability to external shocks.

He added that the central bank had set up an internal team to monitor implementation and respond to queries arising from the directive.

Presenting highlights of the 2025 survey, Chipimo said Zambia recorded US$2.36 billion in foreign direct investment in 2024, the highest level since 2017 and a notable increase from the US$641.1 million reported in 2023.

He said the rise was mainly driven by reinvested earnings and equity inflows in the mining and manufacturing sectors, and intracompany debt directed toward mining operations.

Private sector foreign liabilities stood at US$712.9 million, while the total stock of liabilities increased to US$19.8 billion, with mining accounting for 61 percent of the total.

He said the developments were expected to reflect in export performance, foreign exchange inflows, and medium-term economic conditions.

Zambia Statistics Agency Manager Patrick Chuni, speaking on behalf of Acting Statistician General Shella Mudenda, said that credible statistics remained essential for economic planning and policymaking.

He added that government outlined its commitment to strengthening the national statistical system through the Eighth National Development Plan and the Second National Strategy for the Development of Statistics (2023–2027).

Chuni noted that the 2025 survey met international standards, including the IMF’s Balance of Payments and International Investment Position Manual and the OECD Benchmark Definition of Foreign Direct Investment.

He encouraged stakeholders from government, private sector, civil society and academia to apply the findings in their respective sectors, stating that the results were intended to inform decision-making and support national planning.

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