Regulatory Alerts2024-01-01
Bank of Zambia Stability and Resilience Facility
The Bank of Zambia has launched a K5 billion Stability and Resilience Facility to channel funds through eligible financial service providers for onward lending to viable agricultural businesses and entities affected by recent drought-induced electricity shortages. Effective December 30, 2024, the twelve-month funding window will be accessible to all heads of financial service providers under prescribed terms designed to mitigate sector-wide instability. This initiative directly addresses the economic disruptions caused by prolonged load shedding and reduced food production, thereby reinforcing overall price and financial system stability across Zambia.
[LOGO] BANK OF ZAMBIA OFFICE OF THE DEPUTY GOVERNOR - OPERATIONS
BOZ/EXEC/DG/fsd/bp
December 27, 2024
CB Circular No. : 21/2024
To : All Heads of Financial Service Providers
BANK OF ZAMBIA STABILITY AND RESILIENCE FACILITY
The Bank of Zambia wishes to announce the launch of the Stability and Resilience Facility (SRF) to safeguard financial stability and enhance the resilience of the financial sector in the wake of the 2023/24 drought. The drought has had a devastating impact on the domestic economy and has the potential to destabilize the financial sector. Food production and hydroelectricity generation have particularly been negatively affected, leading to food insecurity and extended periods of load shedding. Introduction of this Facility is, therefore, in line with the broader mandate of the Bank of Zambia of supporting and engendering price and financial system stability.
Under the Facility, the Bank of Zambia shall provide funds to eligible Financial Service Providers (FSPs) for onward lending to viable businesses in the agriculture sector and those negatively impacted by the current electricity shortages. The funds shall be offered under prescribed terms and conditions which shall be distributed to all FSPs and published on the Bank of Zambia Website as well.
Therefore, effective Monday, December 30, 2024, the Bank of Zambia will open a SRF Access Window with a funding of K5.0 billion (Kwacha Five Billion only), for a period of twelve months.
For further information, relating to the Facility, please do not hesitate to contact the Bank of Zambia through the office of Director – Prudential Supervision on lmambo@boz.zm or Director – Financial Stability on gkataya@boz.zm, as appropriate.
Kindly be advised accordingly.
[Signature]
Francis Chipimo (PhD) DEPUTY GOVERNOR
Bank Square, Cairo Road, P.O. Box 30080, Lusaka, Zambia Tel:+260-211-399303, 399300, E-mail: dgo@boz.zm. Web: http://www.boz.zm