Zambia National Commercial Bank PLC (ZANACO)

Triplet 59
Oct 15
5 min read

ISIN: ZM0000000250

A Quiet Giant: The Origins and Heritage of Zanaco

Founded in 1969, Zambia National Commercial Bank PLC (Zanaco) stands as one of Zambia’s oldest, largest, and most trusted financial institutions. It was established by the Government of the Republic of Zambia with a vision to create a bank that would serve all Zambians — from large corporations to rural communities.

Over five decades later, Zanaco has evolved from a state-owned retail bank into a modern, publicly listed financial powerhouse, blending national heritage with private-sector efficiency.

Zanaco was partially privatized in 2008, with the Government of Zambia retaining a significant stake through the Industrial Development Corporation (IDC), while Rabobank of the Netherlands became a strategic shareholder. This partnership injected global banking expertise and governance, positioning Zanaco as a leader in innovation, digitalisation, and inclusive banking.

Today, Zanaco is not just a bank — it’s a symbol of Zambia’s financial resilience, serving over 3 million customers and playing a key role in the nation’s economic and digital transformation.

Leadership and Vision: Under the Guidance of Mukwandi Chibesakunda

Since assuming the role of Chief Executive Officer, Mukwandi Chibesakunda has been instrumental in redefining Zanaco’s strategic direction and corporate culture. As the first female CEO in the bank’s history, she has brought a bold, inclusive, and transformative vision to the institution.

Under her leadership, Zanaco has accelerated its digital transformation, introduced new customer-focused innovations, and expanded its reach to previously underserved segments of Zambia’s economy. Chibesakunda’s tenure has been marked by record-breaking profitability, increased market share, and a renewed emphasis on sustainability and gender empowerment — both within the organization and in its broader economic impact.

Her pragmatic yet visionary leadership style has helped position Zanaco as a regional model for modern African banking, balancing profitability with purpose. Through initiatives in SME lending, agriculture finance, and digital inclusion, she has ensured that the bank’s growth story aligns closely with Zambia’s national development goals and the financial empowerment of its citizens.

Chibesakunda’s achievements have also drawn international recognition, reflecting her influence not only as a banking executive but also as a champion for women in leadership across Africa’s financial sector.

The Investment Vehicle: Structure, Objective, and Style

Behind ISIN ZM0000000250, Zanaco is a publicly listed commercial bank on the Lusaka Securities Exchange (LuSE). The institution provides a broad suite of financial products and services, including:

Retail and SME banking
Corporate and institutional banking
Treasury and trade finance
Digital and mobile banking solutions

Zanaco’s corporate objective is to deliver sustainable growth, inclusive access, and shareholder value. Its structure combines strong local presence with international best practices, underpinned by advanced digital systems and governance aligned with Basel standards.

The bank’s blend of domestic focus and global connectivity makes it a cornerstone of Zambia’s financial ecosystem.

Philosophy, Style, and Approach

Zanaco’s mission — “To be the leading bank for all Zambians” — reflects its inclusive growth philosophy. The bank strives to bridge the gap between corporate sophistication and community empowerment by offering tailored solutions across all economic segments.

Its approach combines:

Digital Transformation – Expanding mobile and online banking access across Zambia.
Financial Inclusion – Deepening rural penetration through agency banking and microfinance.
Sustainability – Embedding ESG principles within lending and investment strategies.

Zanaco’s operational culture emphasizes transparency, customer-centricity, and innovation — attributes that have helped it maintain leadership in an increasingly competitive regional banking sector.

Track Record, Performance, and Benchmarks

Zanaco has consistently ranked among the top-performing banks in Zambia, both by profitability and asset base.

Key financial highlights (as of recent reporting):

Total Assets: Over ZMW 35 billion
Net Profit: Approximately ZMW 1.5 billion annually
Return on Equity: Above 25%, positioning it among Africa’s top-tier retail banks
Market Share: Over 20% of Zambia’s banking sector by deposits and loans

The bank’s strong financial position has been supported by prudent management, stable liquidity ratios, and a diversified income base across lending, transactional, and treasury operations.

It continues to outperform regional peers in terms of digital innovation and customer reach, particularly through its mobile platform, Zanaco Xpress.

Use Cases, Investor Base, and Institutional Appeal

Zanaco’s shareholder base reflects a blend of institutional and retail investors. The Government of Zambia, through IDC, remains a major stakeholder, ensuring strategic alignment with national development goals.

Private investors — both local and international — view Zanaco as a gateway to Zambia’s growing financial sector, offering exposure to both retail banking growth and corporate activity linked to agriculture, energy, and infrastructure.

For institutional investors, the bank’s long operating history, consistent dividend policy, and market leadership provide a stable entry point into Zambia’s financial services market.

Regions, Availability, and Accessibility on Verī

Through the Verī Platform, Zanaco’s listed equity is available to investors within a regulated, transparent framework that consolidates access to local African exchanges.

This accessibility allows advisers, institutions, and individual investors across Africa and beyond to engage with one of the region’s most credible and forward-looking banks — whether as part of regional diversification or exposure to financial-sector growth opportunities.

Integration with Verī Platform and MPS

On the Verī Platform, Zanaco is globally accessible, providing investors across Africa and beyond with a route to hold Zambian banking-sector exposure within a regulated investment account. Within the Verī Managed Portfolio Service (MPS), locally listed equities such as Zanaco might be used to reflect financial-sector participation within regionally focused models.Depending on investment themes, Zanaco might feature in portfolios emphasizing African banking, domestic capital market development, or income potential through dividend-paying equities. The MPS structure ensures these exposures are efficiently managed with full transparency and reporting oversight.

Costs, Fees, and Efficiency

Listing: Lusaka Securities Exchange (LuSE)
Market Capitalization: Approx. ZMW 4 billion (subject to market variation)
Ownership: IDC Zambia (majority), Rabobank (strategic partner), Public & Institutional Shareholders
Dividend Yield: Typically between 4–6%
Core Segments: Retail, SME, Corporate, and Digital Banking

Zanaco’s efficiency, profitability, and dividend consistency make it one of the most reliable listed financial institutions in Southern Africa.

Comparative Advantages and Risks

Advantages:

Strong balance sheet and market leadership in Zambia
Government and institutional shareholder support
Established digital and agency banking network
Regular dividend distributions

Risks:

Currency risk (Zambian kwacha volatility)
Exposure to domestic macroeconomic trends
Regulatory shifts in the financial sector
Concentration risk in Zambia’s domestic economy

How Verī Platform Helps Clarify

At Verī, our mission is simple: to provide access to the entire universe of investments — from income to accumulation strategies, passive to active approaches, low-risk to high-risk instruments, across all asset types, currencies, and regions.When we highlight funds or securities such as this one, it is not an endorsement, recommendation, or promotion of that specific investment. Rather, it is a demonstration of the wide spectrum of options available through the Verī Platform.Our role is to enable access and transparency — giving investors and institutions the ability to see, compare, and evaluate a universe of choices, so they can make their own informed decisions in line with their objectives and responsibilities.

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Disclaimer

“This article is provided by Verī strictly for informational purposes only. It is not intended as financial advice, a recommendation, or an endorsement of this investment. The details shared are educational, aimed at broadening knowledge of the investment universe available.”