Bank of Zambia Rolls Out New Banknotes Amid Economic Optimism

The Bank of Zambia has officially introduced new banknotes nationwide, marking them as the country’s new legal tender. To ensure a smooth transition, the old banknotes will remain in circulation for one year, with Bank of Zambia Governor Denny Kalyalya assuring the public that exchanging old notes for new ones is free of charge.

Speaking at the launch on Monday, Kalyalya explained that while most denominations are already in use, the K100 and K50 notes are still in production and will enter circulation in September once the Central Bank has sufficient supply. He also highlighted key design updates, noting, “The only thing you’ll see is that with the K1, the old K1 will have the 'K,' but the new K1 has no 'K'; they are both coins. Apart from that, the K5 and K2 also have features for the visually impaired.”

Finance and National Planning Minister Situmbeko Musokotwane expressed confidence in the country’s economic trajectory, predicting a 6% growth rate by year-end. “I believe this is indeed the turning point,” he said. “With the work my colleague, the Minister of Mines, has done, by 2025 the mining sector will keep expanding, and by 2028, it will be a different story.”

Musokotwane also projected a return to single-digit inflation, emphasising that the economy is stabilising despite recent challenges. “I am confident that we are nearing a turning point for inflation, and therefore, we are also in a good place to get back to single-digit inflation, which is where we were before this drought and other disturbances came through,” said Dr Musokotwane.