Industry observers generally credit the Bank of Zambia with making large strides in improving bank oversight over the past several years. Under review by Parliament is legislation for deposit insurance scheme and for controlling money-laundering activities. There are no controls on the movement of capital in or out of Zambia. Bank accounts may be held in local or foreign currency, and funds are easily transferred out of the country or held offshore. Amounts over 5,000 U.S. dollars, carried in or out in cash or travelers checks, must be declared.
Domestic financing is in short supply except for export-oriented production.
Although interest rates have declined since January 1997, rates are still high enough to make medium or long term borrowing unfeasible. Short term borrowing is available, but expensive. Many businesses either self finance or seek finance outside the country, in hard currency. In general, companies find it very difficult to finance their own imports and seek credit arrangements, but businesses considering offering their exports on credit should make a very careful check of the bona fides and finances of Zambian companies before doing so. Delinquent payments to suppliers are a common problem in Zambia.