Zambia Introduces New Currency Series to Enhance Security and Transaction Efficiency
The Minister of Finance and National Planning, Hon. Dr. Situmbeko Musokotwane, MP, has announced the introduction of a new family of Zambian currency, set to be officially launched on March 31, 2025. The move aims to strengthen the country’s monetary system, improve currency security, and enhance transaction efficiency.
Speaking in Parliament, Dr. Musokotwane explained that the Bank of Zambia Board of Directors made the decision to introduce the new banknotes and coins on July 30, 2021, in line with Article 213(2)(A) of the Constitution and the Bank of Zambia Act, 2022. The updated legal framework gives the central bank exclusive authority to issue the nation’s currency.
The new currency series will include six banknotes—K500, K200, K100, K50, K20, and K10—as well as six coins—K5, K2, K1, 50N, 10N, and 5N. The existing 10N and 5N coins will be retained to facilitate small transactions and prevent unnecessary price adjustments.
Dr. Musokotwane outlined several reasons for the currency update. The new notes will have advanced anti-counterfeiting features to protect the integrity of the Kwacha. The introduction of higher-value notes and coins will reduce the number of banknotes needed for everyday transactions, lowering printing costs.
The K100 note currently makes up over 70% of the total currency in circulation, exceeding the international benchmark of 60%. The introduction of K500 and K200 notes will ease cash-based transactions.
The government has assured the public that the value of the Kwacha remains unchanged. A 12-month transition period will allow both the old and new currency series to circulate side by side. A Statutory Instrument will be issued under Section 25 of the Bank of Zambia Act, 2022, to guide the withdrawal of the old currency.
The Bank of Zambia will lead a nationwide sensitization campaign to educate businesses, law enforcement, and the public on the new banknotes and coins. Special attention will be given to border towns, where the Kwacha is widely used for trade.
Dr. Musokotwane described the currency overhaul as a progressive step in modernizing Zambia’s financial system. By introducing a secure, efficient, and trusted currency, the government aims to bolster public confidence, enhance economic transactions, and support national economic growth.
