Lusaka, Zambia (November 27, 2024): Zambia Industrial Commercial Bank (ZICB) has announced its participation in the Tradeclear Zambia initiative, following the signing of an agreement with Frontclear, a leading organization focused on money market development in emerging and frontier markets on 26th November 2024.
Tradeclear Zambia, a groundbreaking program launched in collaboration with the United Nations Economic Commission for Africa (UNECA), Frontclear, and the Bank of Zambia, is aimed at strengthening Zambia’s financial markets by addressing key challenges such as limited market depth, segmentation, and credit risk.
The program focuses on:
- Developing a stable money and swap market to enhance liquidity and market participation.
- Mitigating credit risk to build trust among interbank participants.
- Enhancing knowledge and capacity of market players to ensure sustainable growth.
Driving Financial Stability and Resilience
Through Tradeclear Zambia, ZICB will play a pivotal role in supporting the development of a robust financial system. By reducing counterparty credit risks in interbank transactions and improving the distribution of funding within the system, the program aims to strengthen monetary policy transmission and contribute to the overall resilience of the Zambian economy.
A Commitment to Market Development
“ZICB’s participation in the Tradeclear Zambia initiative highlights our commitment to advancing Zambia’s financial markets and promoting sustainable economic growth,” said Mr. Ngenda Nyambe, CEO of ZICB. “This partnership aligns with our mission to provide innovative financial solutions while fostering market stability and development.”
The Road Ahead
Tradeclear Zambia builds on extensive groundwork, including a feasibility study and workshops conducted by UNECA, the Bank of Zambia, and Frontclear. The program targets key areas such as legal and regulatory frameworks, system infrastructure, banking skills development, and market demand assessment.
By joining this initiative, ZICB is reinforcing its role as a leader in Zambia’s financial sector, working collaboratively to create a more efficient and inclusive financial ecosystem.