Chairman’s Report
Dear Valued Shareholders,
2025 was a year of strategic transition for Zanaco. It marked a defining moment in our transformational journey with the conclusion of our 2020–2025 Medium-Term Plan and, importantly, the approval of a new Medium-Term Plan that will guide the Bank through the 2026–2030 period. Throughout the year, the Board remained focused on its core responsibility: protecting and growing the long-term value of Zanaco through disciplined oversight and sound judgement.
I am pleased to report that Zanaco enters its next strategic cycle from a position of strength. The foundations built over the past five years across governance, risk management, capital discipline, digital capability and institutional resilience provide the platform from which the Bank can pursue growth with confidence.
As shareholders, you expect clarity of direction and confidence in the future. It is from this perspective that I reflect on the year under review and on the strategy that will shape the Bank’s next phase of development.
Economic and Operating Environment
Global economic conditions in 2025 remained challenging. The cumulative effects of tight financial conditions, geopolitical uncertainty and uneven recovery across major economies continued to influence capital flows, trade dynamics and risk sentiment, shaping the operating environment. While inflationary pressures eased and energy prices stabilized, financing conditions remained restrictive for much of the year. Commodity markets reflected these dynamics, with softer oil prices easing global inflation pressures and firmer copper prices supported by long-term demand linked to infrastructure development and the energy transition.
In Zambia, the economy showed encouraging signs of recovery following the adverse effects of the severe drought experienced in prior years. Economic activity strengthened, supported by improved electricity supply, a recovery in the mining sector, resilient consumer demand and continued growth in ICT services. Inflation moderated over the course of the year, aided by improved agricultural conditions and a strengthening exchange rate. The appreciation of the Kwacha reflected stronger foreign exchange inflows and increased confidence following progress on sovereign debt restructuring.
Monetary conditions remained relatively tight for most of the year as policy authorities prioritized macroeconomic stability. Progress on debt restructuring and improved sovereign credit ratings contributed to a more constructive outlook, and towards year-end the Bank of Zambia signalled the potential for gradual policy easing. For the banking sector, the environment remained mixed but improving, reinforcing the importance of prudent balance sheet management and disciplined risk oversight.
Strategic Context and Transition
2025 marked the end of the Bank’s 2020–2025 Medium-Term Plan, a successful strategic cycle anchored on the pillars of attaining and retaining market leadership, delivering a superior customer experience, and driving efficiencies through innovation.
Over the course of this strategic cycle, the Board worked closely with management to enhance governance and oversight frameworks, embed a robust risk-and-compliance culture, invest in systems, technology and organizational capabilities required to operate effectively in a rapidly evolving financial services landscape. This ensured that the Bank remained resilient, well-governed and aligned to its long-term objectives.
The outcomes achieved during this period reinforced the Bank’s strong competitive position and aligned performance with its long-term objectives, further cementing Zanaco’s standing as a leading financial institution in Zambia.
This strategic cycle has materially strengthened the Bank’s foundations and enhanced its readiness for the next phase of growth. The transition to a new Medium-Term Plan therefore reflects deliberate evolution rather than change for its own sake. The Board remains firmly of the view that continuity of purpose, underpinned by adaptability and prudent stewardship, is essential to sustaining long-term value and supporting inclusive growth in the years ahead.
Introducing the 2026–2030 Medium-Term Plan
During the year, the Board approved a refreshed Medium-Term Plan to guide Zanaco through the 2026–2030 period. This strategy has been shaped in recognition of changing customer expectations, accelerating digital adoption and the increasing importance of resilience and sustainability.
In approving the strategy, the Board placed emphasis on three priorities. First, reinforcing a sustained and explicit customer-first orientation across all areas of the Bank. Second, embedding digital capabilities as a core operating model across the Bank, fully integrated into how the Bank delivers value rather than as a standalone initiative. Third, strengthening the Bank’s foundations to ensure that growth is pursued in a disciplined, well-governed and sustainable manner.
Resilience is not a constraint on ambition; it is the foundation of long-term success. The Board is confident that the approved strategy provides a clear and coherent framework for management to execute, while remaining firmly anchored in long-term value creation and prudent risk management.
Long-Term Value Creation and Institutional Resilience
The Board’s mandate is to safeguard the long-term interests of the Bank and its shareholders. In today’s environment, value creation is defined not only by financial outcomes, but by the strength of an institution’s foundations: its governance, risk discipline, culture, and capacity to adapt.
Resilience remains central to preserving value across economic cycles. This includes protecting customer trust, maintaining balance sheet strength and responding effectively to both external shocks and structural change. Sustainability considerations are increasingly integral to how the Board assesses risk and opportunity, reinforcing Zanaco’s role as a responsible and trusted financial institution.
Through disciplined oversight and long-term thinking, the Board remains committed to ensuring that the Bank continues to build enduring value while supporting economic development in the communities it serves.
Governance and Board Effectiveness
Strong corporate governance remains fundamental to the Board’s stewardship responsibilities and the Bank’s long-term sustainability. During the year, the Board continued to oversee strategy, risk management, internal controls and regulatory compliance within a robust governance framework.
The Board is supported by its committees, which provide focused oversight across key areas including risk, audit, governance and remuneration.
The Board remains committed to maintaining an appropriate mix of skills, experience and independence, supported by ongoing evaluation and succession planning.
Leadership and Management Assurance
The Board recognizes the importance of strong leadership and effective management in delivering strategy. Throughout the year, the Board maintained regular engagement with executive management, providing oversight and appropriate guidance.
As the Bank prepares to implement the 2026–2030 Medium-Term Plan, the Board is confident that management is well positioned to execute the approved strategy within the parameters and risk appetite set by the Board.
Outlook and Closing Perspective
Looking ahead, the operating environment will continue to evolve, shaped by global economic developments, rapid technological change and evolving regulatory expectations. The Board believes that the 2026–2030 Medium-Term Plan provides a clear direction for the Bank’s next phase of growth and positions Zanaco to adapt and compete effectively.
In closing, the Board remains fully invested in the long-term success of Zanaco. We look ahead with confidence as we execute the approved strategy and continue to build a resilient, customer-focused and trusted institution for the benefit of all stakeholders.
Professor Oliver Saasa
Board Chairman
