Minister of Finance and National Planning, Dr. Situmbeko Musokotwane, has assured Zambians that the introduction of a new family of banknotes and coins will not lead to inflation but will instead enhance efficiency in economic transactions.
Speaking at the official launch of the new Zambian currency notes in Lusaka today, Dr. Musokotwane urged the public to remain calm, emphasizing that changing banknotes does not increase the money supply. Instead, he explained that the new notes are designed to improve transaction efficiency and support economic growth.
“The new notes will enhance and promote efficient transactions, which will spur economic growth,” he stated. He further clarified that the currency redesign is not an indication of policy failure but a strategic move to boost productivity and unlock GDP growth.
Dr. Musokotwane also reaffirmed Zambia’s economic resilience despite challenges posed by drought. He expressed confidence that the country’s projected 6% GDP growth target for 2025 remains achievable. He acknowledged the impact of dry spells on inflation but noted that inflation rates are expected to drop to a single digit by May this year.
The minister highlighted tourism and mining as key contributors to Zambia’s economic expansion, emphasizing that the mining sector is poised for further growth due to progressive government policies.
“As we transition to the new family of Zambian currency, a statutory instrument (SI) has been issued, allowing a twelve-month exchange period starting today, March 31, 2025,” Dr. Musokotwane announced. He also urged financial service providers, including mobile operators, to promote digital transactions to complement the currency transition.
Meanwhile, Minister of Tourism Rodney Sikumba noted that the new banknotes and coins incorporate heritage symbols that will help market Zambia’s cultural and historical identity to the world.
Bank of Zambia (BoZ) Governor Dr. Denny Kalyalya confirmed that the newly launched banknotes and coins are now legal tender. Citing Article 213 of the Zambian Constitution, which authorizes the issuance of new currency, and SI No. 9, which facilitates the withdrawal of old notes at no cost, Dr. Kalyalya reassured the public that the transition would be smooth.
He also emphasized the importance of enhanced security features in the new currency, which are designed to curb counterfeiting. “The launch we are witnessing today is momentous as it brings a family of Zambian currency with enhanced security features while maintaining the same value. This means no one will have to carry sacks of cash to purchase goods,” he said.
BoZ has since deployed teams across all 116 districts to raise awareness and ensure a seamless transition to the new currency.