Chairman’s Report
Dear Valued Shareholders,
I am honored to present the Zanaco Plc 2024 Integrated Report, which reflects our steadfast commitment to innovation, value creation, and business resilience in a year marked by growth amid a challenging operating environment.
Operating Environment
The operating environment in 2024 was dynamic, presenting both challenges and opportunities for the banking sector.
Monetary policy adjustments including an increase in the statutory reserve ratio and tightened liquidity required disciplined financial management and innovative approaches to deposit mobilization. Prolonged drought conditions and nationwide load-shedding further impacted key economic sectors such as agriculture, manufacturing, and energy. These challenges not only tested the resilience of businesses across the country, but also underscored the need for tailored financial solutions to support clients in navigating economic uncertainties.
Despite these headwinds, the banking sector demonstrated remarkable resilience, supported by proactive business growth measures, strong capital adequacy and a focus on innovation and sustainability. Zanaco remained committed to leveraging these strengths to deliver value for its customers and to contribute to Zambia’s economic development.
Performance against our Strategy
As we approach the conclusion of our 2020–2025 strategic plan, we are proud of the transformational steps taken to align Zanaco with its long-term ambitions. This strategy, built on the pillars of attaining and retaining market leadership, delivering superior customer experiences, and driving efficiencies through innovation, has guided us toward sustained growth and positioned us as a leading financial institution in Zambia.
This year, we laid the groundwork for the next phase of our journey by introducing evolved organisational values which are Customer Focus, Innovation, Team Work, Accountability and Courage (C.I.T.A.C 2.0), fostering a culture of innovation benchmarked against global leaders, and laying the foundations for our data transformation plan to leverage big data and advanced analytics. These initiatives not only reinforce our commitment to customer-centricity but also position us to continue to create shareholder value in a rapidly evolving financial landscape.
With the current medium-term plan nearing its completion, we are actively preparing to launch our 2026–2030 strategy. This next phase will focus on continuing to build on the solid foundations we have laid by strengthening our cybersecurity frameworks to safeguard customer trust and the integrity of our platforms; deepening compliance with evolving regulatory requirements to ensure sustainable growth; expanding financial inclusion and sustainability initiatives to support economic development and empower communities; and integrating advanced data analytics and artificial intelligence to enhance decision-making and deliver more personalized services to our customers.
These priorities align with our vision of becoming and remaining the leading financial institution, leveraging cutting-edge innovation to remain at the forefront of Zambia’s financial sector while delivering long-term value for our shareholders.
Key Highlights during the Year Include:
a. Achieving strong financial performance with Group Revenue growth of 6% to K5.58 billion, customer deposits growth of 6% to K36.02 billion, and loans and advances growth of 24% to K19.98 billion;
b. Reinforcing our leadership in digital innovation by expanding access to financial services and strengthening customer relationships, exemplified by the successful implementation of the Government Social Cash Transfer Program, which underscores our commitment to financial inclusion;
c. Advancing our sustainability agenda through the implementation of a comprehensive framework that aligns our operations with environmental, social, and governance (ESG) principles, ensuring long-term value creation;
d. Supporting local businesses and communities during a challenging economic environment by offering innovative solutions such as solar financing, which empowers our customers to adopt sustainable practices while enhancing our competitive position in the market;
e. Embarking on transformative journeys that will define Zanaco’s future, including:
- Evolved Values: Launching the C.I.T.A.C 2.0 values — Customer Focus, Innovation, Teamwork, Accountability, and Courage — as the foundation of our identity, driving a culture of excellence and shared purpose across the organisation;
- Vision and Mission Realignment: Setting the stage for 2025 with realigned vision and mission statements that reflect our aspirations and align with the evolving needs of our customers and stakeholders;
- Culture of Innovation: Adopting an innovation culture benchmarked against the world’s most innovative companies, positioning Zanaco as a pioneer in delivering forward-thinking financial solutions; and
- Data Transformation: Advancing our data journey to unlock the power of big data and advanced analytics, enabling smarter decision-making and further improving customer experiences.
f. Enhancing the digital banking experience by seamlessly migrating and onboarding our digital customers onto the core banking system, positioning Zanaco as a leader in delivering universally accessible financial services.
Board Changes During the Year
I am deeply honoured and grateful for the trust and confidence that the Board has placed in me by appointing me as the Chairman, following the retirement of Mr. Patrick Wanjelani who had been the Chairman since 2021 until he retired in 2023. On behalf of the entire Board I would like to express my sincere gratitude to the Vice Chairman, Mrs Regina Mulenga, who held fort as Interim Chairman for most part of 2024 until my appointment in August. During the course of the year, we welcomed Mr. Owen
Silavwe as an Independent Non-Executive Director on the Board, whose extensive experience has been and will continue to be a great contribution to the Board.
In an effort to further enhance our governance structures, the Board reconstituted some of the Board Committees to support the Board in its oversight responsibility to deliver on our strategy.
In closing, I extend my deepest gratitude to our Chief Executive Officer, the management team, and all Zanaco Staff for their unwavering dedication and hard work. I also express heartfelt thanks to you, our shareholders, for your continued trust and confidence. Together, we will continue to build a stronger, more inclusive, and resilient Zanaco.
Professor Oliver Saasa
Board Chairman
