Bank of Zambia Currency Directives Explained: What They Mean for Real Estate, Expats, NGOs & How to Stay Compliant in 2026

Over the past few months, the Bank of Zambia has released a series of currency directives that have sparked questions across the market especially in real estate, where pricing has traditionally been discussed in USD.

This article breaks it all down in plain language:

• What the directives actually say

• Who is exempted (and who is not)

• How this affects real estate transactions

• What expatriates, NGOs, and foreign companies need to know

• Practical steps you can take to stay compliant in 2026 without losing value

1. What Are the Bank of Zambia Currency Directives?

In simple terms, the Bank of Zambia has clarified and reinforced one key principle:

All domestic transactions in Zambia must be settled in Zambian Kwacha (ZMW).

This applies even if:

• The price is discussed or referenced in USD

• The client is a foreigner or expatriate

• The funds originate outside Zambia

USD can still be used as a reference currency, but the final payment must be made in Kwacha, using the prevailing market exchange rate. Where there is disagreement on the rate, the Bank of Zambia mid-rate applies.

The goal is not to ban USD thinking, but to:

• Strengthen use of the Kwacha

• Improve transparency

• Reduce informal FX practices

2. What Does This Mean for Real Estate in Zambia?

This is where clarity matters.

✅ You can still quote, market, and negotiate in USD

USD remains the preferred reference currency for:

• High-value properties

• Expatriate tenants

• Investors benchmarking value

⚠️ But settlement must be in Kwacha

When it’s time to pay rent, purchase property, or sign off on a transaction:

• Payment must be made in ZMW

• Converted from USD at the current bank exchange rate

• With the BoZ mid-rate as a fallback if parties disagree

This means the structure changes, not the value.

3. How Can You Still “Charge in USD” Legally?

Here’s the compliant and practical way the market is adapting:

✔️ Use USD as a reference price

Example:

Rent: $1,000 (Payable in ZMW at the prevailing exchange rate)

This keeps pricing familiar while remaining compliant.

✔️ Add a clear exchange-rate clause in contracts

A simple clause solves most problems:

“All payments shall be settled in ZMW at the prevailing bank market exchange rate on the date of payment. Where parties do not agree, the Bank of Zambia mid-rate shall apply.”

✔️ Shorten price-validity windows

To manage FX movement:

• “Price valid for 48 hours”

• “Rate determined on payment date”

This protects both landlord and tenant.

4. What Should You Do When Signing New Contracts in 2026?

Here’s a practical compliance checklist:

• 🔹 Update lease agreements and sale contracts to include a Kwacha settlement clause

• 🔹 Dual-price listings: USD (reference) + ZMW (settlement)

• 🔹 Clearly define which exchange rate applies and when

• 🔹 Ensure invoices and receipts are issued in ZMW

• 🔹 Use regulated banks or licensed forex channels

This isn’t about over-lawyering deals. It’s about removing ambiguity.

5. How Does This Affect Expatriates?

If you’re an expatriate working for:

• An NGO

• A multinational company

• A foreign mission

• An international employer

Here’s what it means for you:

• You can bring in USD or foreign currency

• Funds are converted through the banking system

• Final rent or property payments are made in Kwacha

In practice, nothing dramatic changes:

• Your salary may still be paid in foreign currency

• Your employer may still remit funds internationally

• The conversion happens at payment, not at negotiation

Think of it as currency translation, not a restriction.

6. Who Is Actually Exempted?

This is important.

Exemptions are sector-specific, not lifestyle-based.

Common exemptions include:

• Mining sector transactions

• Certain tourism services paid directly by non-residents

• Electricity trading

• Embassies and enclave operations

• Some export-related activities

⚠️ Real estate is not a blanket exemption sector. An NGO renting a house, or a foreign company leasing offices in Lusaka, is still engaging in a domestic transaction and must settle in Kwacha.

7. Will This Increase Demand for the Kwacha?

Yes, modestly and structurally.

Here’s why:

• Every property transaction now requires Kwacha at settlement

• Foreign funds must pass through conversion

• Demand for Kwacha becomes more consistent and predictable

This doesn’t mean overnight appreciation, but it:

• Strengthens transactional demand

• Improves market discipline

• Reduces parallel-rate behavior

In the long run, this supports currency stability.

Final Thoughts

The Bank of Zambia directives are not anti-business, anti-investor, or anti-USD.

They are pro-clarity, pro-structure, and pro-local currency usage.

For real estate:

• USD remains a reference language

• Kwacha becomes the settlement instrument

• Smart structuring keeps value intact

If you understand the rules, you don’t lose money. You gain certainty.

📄 Bank of Zambia Currency Directives, 2025 (Official PDF)

👉 https://www.boz.zm/Bank_of_Zambia_Currency_Directives_2025.pdf — this is the full directive as issued by the Bank of Zambia.