Zambia National Commercial Bank Plc ( ZANACO), […]

Zambia National Commercial Bank Plc ( ZANACO), one of Zambia largest financial institutions, has failed to confirm government repayment of the K2 billion the bank lent to the government last year in 2025 to settle-off farmers who supplied maize to the Food Reserve FRA.

Brief facts of the matter are that last year in November 2025, then Minister of Agriculture Mtolo Phiri, issued a statement on the Status of payments to farmers who supplied maize to the Food Reserves Agency (FRA) during the 2024/2025 crop marketing season.

In the presentation Mtolo mentioned that FRA projected to purchase 543 thousand metric tonnes of maize at K6,800 per metric tonnes, or K340 per 50 kg bag during the 2025 crop marketing season. And the total cost of purchasing the 543 thousand tonnes was estimated at K3.7 billion.

However, due to the bumper harvest recorded in the 2024/2025 farming season and considering the limited participation of the private sector in Maize marketing, the government decided to increase its share of maize purchases. By 31th October, 2025, FRA had purchased 1.7 metric tonnes of white maize, valued at K11.3 billion and was supplied by a total of 846,000 farmers across the country.

The move implied a 306 per cent increase over and above the initial intended target leaving an additional cash requirement of K7.6 billion.

Additionally, at the time the Minister confirmed that government had paid about K2.1 billion to the farmers and the remaining balance was going to be addressed through structured financial interventions to ensure that all the farmers are paid, and government, through the FRA had successfully concluded engagement with commercial banks for a structured loan facility amounting to K5 billion.

Further, according to publicly available information which Zambian Business Times- ZBT has not independently verified – indicates that ZANACO was a lead financier and had lent about K2 billion out of the K5 billion government intended to borrow from commercial banks.

However, following media reports that commercial banks that lent money to government have not been settled, the Zambian Business Times – ZBT reached out to ZANACO bank CEO Mukwandi Chibesakunda who directed Chanda Chime-Katongo who is the Executive Head Client Solution for ZANACO to give a comment.

Chime-Katongo later responded indicating that the Bank is not in a position to confirm or disclose details relating to any borrowing arrangements, repayment, or outstanding balances pertaining to the government.

“As a matter of policy, ZANACO does not comment on the specific banking relationships, facilities, or transactions of any client, including government entities. This is in line with our obligations regarding customer confidentiality and banking secrecy and We are therefore not in a position to confirm or disclose details relating to any borrowing arrangements, repayments, or outstanding balances pertaining to any client,” Chime-Katongo told ZBT.

However, a check by ZBT revealed that the responsibility for confidentiality is supposed to be weighed against public interest and the amount involved of K2 billion is significant and should ideally force ZANACO to give a position and reveal more details.

Moreover, there are public reports related to these funds borrowed from commercial banks of suspected corruption following some leaked documents relating to maize that was bought by FRA and supplied to some politically connected firms which are reported to have miss-used the funds.

Does the need for confidentiality in this case supersede the high level public interest in this matter?

Article by Justine Phiri