Bank of Zambia to launch online portal for comparing bank loan rates

The Bank of Zambia (BoZ) says it plans to introduce an online portal that will enable borrowers to compare interest rates charged by different financial institutions as part of efforts to promote transparency and improve access to affordable credit.

Central Bank Governor, Denny Kalyalya, said they would also require lenders to adopt risk-based pricing, under which interest rates would be determined by borrowers’ assessed credit risk.

Speaking at the National Symposium on the 2027 National Budget in Lusaka on Monday, Kalyalya said borrowers charged rates above the market median would be informed of the reasons for the higher costs and advised on how to improve their credit profiles to qualify for cheaper loans.

“The measures were intended to strengthen competition among credit providers and give borrowers better information when choosing financing options,” he said.

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Kalyalya also disclosed that preparations for the Small Business Growth Initiative were underway, with a pilot launch expected in the first quarter of 2027.

He said the initiative would operate through a Special Purpose Vehicle (SPV), with the BoZ providing oversight during its initial stages.

The central bank had already completed key institutional documents for the initiative, including the shareholder agreement, articles of association and board charter.

Kalyalya said the BoZ’s shareholding in the initiative would gradually decrease as other financiers came on board.

He also announced plans to establish a Development Finance Institution (DFI) to address the shortage of affordable, long-term financing for businesses.

Kalyalya said businesses continued to face challenges accessing loans with repayment periods of eight years or longer, as commercial banks generally offered lending tenures of no more than six years.

He said the proposed institution would mobilise concessional funding, guarantees, blended finance and private investment to support production, exports, value addition and job creation.

Kalyalya said regulations would be developed to ensure the institution operated under sound governance structures, effective risk management systems and financial sustainability.

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