Finance and National Planning Minister Situmbeko Musokotwane announced that Zambia will undergo a 12-month transition period to replace its current banknotes with new currency, including the introduction of a 500-kwacha note. The move comes as the country’s highest denomination, the 100-kwacha note, now accounts for more than 60 percent of the currency in circulation—a situation Dr. Musokotwane described as inconsistent with international best practices.
Speaking during a ministerial statement in the National Assembly, Dr. Musokotwane outlined the rationale behind the currency overhaul. “The 500-kwacha note has been introduced to address the disproportionate dominance of the 100-kwacha note in our monetary system,” he said. “This shift is necessary to align our currency structure with global standards.”
The minister assured lawmakers that the transition process would be meticulously planned, with detailed modalities and guidelines to be published in a Statutory Instrument in the coming weeks.
Dr. Musokotwane also addressed concerns about the selection of the company tasked with printing the new banknotes. He emphasized that the government had followed a transparent and selective tender process, engaging only reputable and trusted money-printing firms to submit bids.
“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 the minister did not disclose the name of the selected company due to security concerns, he noted that the firm’s identity would become public once the new notes enter circulation, as its name will be engraved on the currency.
The announcement follows queries from Members of Parliament regarding the cost of the currency overhaul. In response, Dr. Musokotwane instructed the Bank of Zambia to issue a formal statement detailing the expenses associated with printing the new banknotes.
The introduction of the 500-kwacha note marks a significant shift in Zambia’s monetary policy, aimed at modernizing its currency system and improving efficiency in cash transactions. As the country prepares for the 12-month transition, citizens and businesses alike will be watching closely to see how the changes unfold.
The Bank of Zambia is expected to release further details on the timeline and implementation of the new currency in the coming weeks.
The truth is that devaluation of our Kwacha is one of the IMF conditions.
You likely have not read that agreement. This is shallow. Valuation of a currency is highly dependent on the ability of a country to export significant products and services and has nothing to do with an agreement with the IMF. This mentality is synonymous with those that believe that they cannot control their own outcomes.
A 12-month seamless transition to the new currency sounds reasonable. But the K500 note is not prudent economics.
Might as well have a K1000 note with HH’s head on it.
The problem with Upnd is that they have too many spokespersons. Each one have their own explanation…. wait for Mweetwa, Kawana, Liteta and the wife and husband secretariat….
Mweetwa and Kawana are empty tins. They will just make more noise than the new coins
Change of currency and having bigger denomination is a sign of devaluation in slow
Phase.next wait for dollar rate to go up.
That is the sign for devaluation.and soon 1000 kwacha will appear and new banknote will replace the old.