Zambia to Introduce 500-Kwacha Banknote in Currency Overhaul

Zambia is set to overhaul its currency system over the next 12 months. As part of efforts to modernise the nation's monetary structure, the transition will introduce new banknotes, including a 500-kwacha note. Finance and National Planning Minister Situmbeko Musokotwane announced the transition, citing the need to address the overwhelming circulation of the 100-kwacha note, which currently accounts for over 60 % of cash transactions.

Musokotwane told Parliament that the introduction of a higher denomination was necessary to align Zambia’s currency structure with global best practices. He assured lawmakers that the transition would be carefully managed, with a Statutory Instrument outlining detailed implementation plans to be issued soon.

Addressing concerns over the selection process for the company tasked with printing the new banknotes, the minister emphasised that only trusted and reputable firms were considered.

“Money printing is a high-security matter that cannot be handled through an open tender,” he explained. “We have ensured that the process adheres to the highest standards of integrity and accountability.” While he couldn’t announce the name of the chosen firm due to security reasons, he confirmed that its identity would be visible on the new notes once they enter circulation.

Lawmakers also raised questions about the cost of the currency overhaul. In response, Musokotwane directed the Bank of Zambia to provide a breakdown of the associated expenses.

With further details expected in the coming weeks, businesses and citizens will be closely monitoring how the transition unfolds and what it means for daily transactions and the broader economy.