The banking industry in Zambia has faced a complex array of challenges and opportunities.
The Eighth Annual Banking Industry Survey (June 2024) by PwC Zambia provides an analysis of these challenges and opportunities as reported to us by the nation’s banking leaders.
Our dual-questionnaire approach targeted the chief executive officers (CEOs) and managing directors (MDs) of the country’s banks, as well as their executive management, providing us with a rich dataset from which to analyse the issues faced by the sector.
The survey results bring to the fore the most significant issues confronting Zambian banks. The state of the local economy was the most pressing concern by a decent margin, underscoring the importance of the relationship between banks and the economic environment in which they operate. Liquidity risk, a perennial challenge for banks, was also a big issue for the sector. Other challenges faced by banks included cybersecurity, with the growing digitisation of banking services amplifying banks’ need for robust cyber defences, increasing credit risk and non-performing loans (NPLs) due to a weak domestic economy, and heightened regulatory compliance.
The insights gleaned from the Eighth Annual Banking Industry Survey (June 2024) not only give a snapshot of the current state of the banking sector but can also guide future strategy. In presenting these findings, we invite stakeholders to engage with the data and to consider its broader implications. The survey is a call to action for strategic thinking and collaborative effort as the banking industry works towards a prosperous and stable future.
Our survey response rate was very good this year, with 73% of CEOs/MDs and 87% of executive management taking the time to answer our questions. We are grateful to everyone who responded. We also acknowledge the input and support of the Bank of Zambia through its Governor, Dr Denny Kalyalya and the Bankers Association of Zambia, which is chaired by Ms Lowani Chibesakunda.
