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Zambia has moved to eliminate the exclusive use of United States (US) dollars at the deposit stage for its 42 embassies worldwide.
Under this arrangement, it has partnered Citi bank to launch a new electronic banking platform, City Direct, that would be implemented to improve payment processes for embassies and consulates abroad on behalf of the Ministry of Foreign Affairs.
It is reported that the platform would enable the Ministry to make payments in local currency, enhance transparency and eliminate correspondent bank deductions and fees.
Additionally, it would streamline payments through domestic channels, offering a better payment experience with faster turnaround times and ease of reconciliation.
Ministry of Finance and National Planning Accountant General, Nsandi Manza, signed on behalf of the government, while Akin Dawodu, Sub-Saharan Sub-Cluster and Banking Head and Managing Director, signed on behalf of Citi Bank in Lusaka on Wednesday.
Manza noted that the partnership marked an important milestone in Zambia’s digitalisation agenda.
“The Ministry will achieve significant financial and time savings by eliminating the need to convert funds to US dollars before sending them to beneficiaries, who then convert them to local currency,” Manza stated.
She highlighted that implementing Citi’s solution was a significant step forward Zambia’s economic transformation, enhancing the country’s ability to conduct international transactions securely and efficiently.
“This collaboration with the Zambian government supports efforts to foster greater financial integration and cooperation on an international scale,” said Citi Bank’s Dawodu.
He explained that the platform was part of Citi’s Treasury and Trade solutions designed to help manage global financial activities more effectively.
Etambuyu Anamela, Permanent Secretary of the Ministry of Foreign Affairs and International Cooperation, added that this initiative would reduce the costs and time associated with receiving foreign payments and foreign exchange transactions.
“Using Citi’s wide network and initiating payments digitally will simplify reporting and controls, leading to greater value for money for the Zambian taxpayer,” Anamela stated.
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