Zambia’s Banking Sector Remains Resilient Amid Economic Pressures, Says Expert
Economic analyst Kelvin Chisanga says that, despite prevailing economic challenges, Zambia’s banking sector continues to demonstrate strong resilience, supported by solid liquidity, capital strength, and effective risk management.
Mr. Chisanga highlighted that leading financial institutions including Stanbic, Zanaco, ABSA and FNB have maintained profitability while keeping non-performing loans well below 10 percent.
He noted that these indicators reflect a banking system well-positioned to absorb shocks.
The analyst observed that Zambia’s recovering private sector is driving increased demand for credit in key sectors such as trade, agriculture and manufacturing.
He also noted that digital banking and fintech innovation are expanding financial inclusion and fueling broader economic growth.
However, Mr. Chisanga cautioned that high lending rates continue to restrict access to affordable credit, particularly for households and small to medium enterprises.
He added that environmental risks in sectors like agriculture and mining are raising concerns about credit quality.
Mr. Chisanga further pointed out that market concentration among a few dominant banks requires close attention to maintain competitiveness and long-term sector stability.
He concluded by emphasizing the need to promote affordable credit, strengthen resilience against sector-specific risks and advance SME financing through digital solutions.
These measures, he said, will be key to sustaining growth and supporting Zambia’s economic recovery.
