Zambia remains open and welcoming to international visitors, with no immediate changes to how they can pay for tourism services
This was the key message in a trade notice issued by Africa's Eden and the SADC Business Council Tourism Alliance to clear up some confusion relating to the recent coverage regarding the proposed de-dollarisation policy in Zambia.
The Zambian government, through the Bank of Zambia, has proposed a de-dollarisation policy aimed at strengthening the Kwacha as the sole legal tender for domestic transactions.
The trade communiqué highlights that these new currency regulations are still in draft form and under consultation. They have not yet been implemented as law.
Why was this proposed?
The primary aim is to regulate domestic transactions between Zambian entities, encouraging the use of Kwacha for local business-to-business dealings.
How does this affect tourism?
The draft regulations include specific exemptions for the tourism sector:
• Non-resident foreigners may pay for tourism services in foreign currency.
• Tourism enterprises registered under the Tourism and Hospitality Act, 2015, are exempt from restrictions on receiving foreign currency payments.
• Companies may continue to quote in US dollars when dealing with international companies or individuals.
What’s the next step?
The tourism industry has voiced concerns about potential impacts on the sector. These concerns are being considered as part of the consultation process.
Any changes to this proposed legislation will go through due process before implementation. There is no immediate change to current practices.
Trade is being asked to provide feedback through appropriate channels if they have concerns about potential impacts on their business.
What can trade do currently?
• Continue conducting transactions as usual. Quoting and accepting payments in US dollars for all tourists and companies is still allowed.
• Stay informed about the legislative process and be prepared to adapt if the policy is enacted.
• Provide feedback through appropriate channels if there are concerns about potential impacts on their business.
• Reassure international clients that their transactions will not be affected by the proposed policy.
• Emphasise that the policy aims to stabilise the local economy without disrupting international tourism.
