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Stanbic Bank says Zambia’s economic growth is projected to accelerate to 5.8 percent, largely driven by expansions in agriculture, construction, mining, wholesale and retail, and the energy sectors.
Speaking during a special session on International Payments and Tax Compliance, organized for the bank’s clients in Lusaka on Friday, Head of Global Markets, McLewen Sikwese, stated that while last year’s drought and power deficit hampered growth, the economy was expected to rebound significantly.
The session aimed to educate clients on tax matters in light of the Zambia Revenue Authority’s (ZRA) newly introduced Advance Income Tax (AIT) regulations on cross-border remittances above US$2,000.
Read more: Stanbic Bank optimistic about Zambia’s mining outlook amid rising copper production
According to data from the Ministry of Finance (MoF), real Gross Domestic Product (GDP) growth for last year was revised downwards to 1.2 percent from the initially projected 2.3 percent, as announced in the 2025 budget presentation.
The downward revision was attributed to the prolonged drought, which severely impacted agriculture and energy production.
During his presentation, Sikwese noted that both the International Monetary Fund (IMF) and the Government of Zambia anticipate 6.6 percent economic growth this year.
“From our own internal research at Standard Bank, we are projecting a very strong GDP growth of 5.8 percent, and this would emanate from a rebound in agriculture and electricity generation.
There is also an expected expansion in mining and sustained growth in construction, which will remain one of the strongest sectors in terms of growth, mainly driven by the Public-Private Partnerships (PPP) projects.”
Meanwhile, the bank has been recognised as the ‘Best Pan-African Bank for SMEs’ at the EMEA Finance African Banking Awards 2024, reflecting its commitment to supporting and empowering entrepreneurs across the continent.
“We’re dedicated to supporting and leveraging the power of the continent’s SME sector and understand that entrepreneurs don’t just need a bank—they need a financial partner that evolves alongside them.
“We share our clients’ ambitions to fuel growth on the continent by unlocking opportunities and providing enabling solutions which are built with real business realities in mind, addressing the critical challenges SMEs face daily,” Chanda Mwila, Head of Business & Commercial Banking said.
She claimed that the awards highlight financial institutions that excel despite challenging macroeconomic conditions, with a strong emphasis on innovation in digital services and commitment to economic development.
Mwila claimed that they have positioned themselves as a leader in SME banking through its purpose-built financial solutions, including Pre-approved Tamanga Working Capital Loans, Trade Loans, Vehicle & Asset Financing, and Property Loans.
Looking ahead, Stanbic Bank continued to focus on expanding financial inclusion for underserved entrepreneurs and developing AI-powered business insights to help SMEs make informed decisions in an increasingly competitive landscape.
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