Governance Statement

DBZ is a development finance institution (DFI) that was established in 1972 under the Development Bank of Zambia Act, Chapter 363 of the Laws of Zambia (the “DBZ Act”. The enabling Act has undergone several amendments with the most recent being those embodied in the Development Bank of Zambia (Amendment) Act No. 11 of 2001 and the Development Bank of Zambia (Amendment) Act No. 24 of 2005.

Governance Framework

Share holders:

Ministry of Finance (Majority)
National Pension Scheme Authority
Zambia National Commercial Bank PLC
Zambia State Insurance Corporation
Development Bank of Southern Africa
Export – Import Bank of India
Valentine Chitalu

Development Bank of Zambia Board

Board Committees

Nominations and Remunerations

The committee is delegated with the responsibility of aiding the Board in discharging its responsibilities relating to staff matters that include reviewing the Bank’s compensation, recruitment, staff retention, succession planning, training and staff development policies.

Investments

Oversees the review, approval of lending strategies, policies including lending limits, asset quality standards with respect to all lending areas and monitor concentration of credit by product, industry and geographic areas.

Risk

Provides oversight on credit risk, market risk, liquidity risk, operational risk, legal risk, compliance risk, reputational risk, strategic risk and other risk that the Bank is exposed to.

Audit

Provides oversight over the Bank’s financial reporting process and ensures that accounting principles, policies and practices are adequate to guarantee resources are safeguarded; laws are followed; reliable data is disclosed; and the internal control systems are adequate.

Governance Principle

The Board of Directors is established by virtue of section 4 of the Development Bank of Zambia Act, Chapter 363 of the Laws of Zambia and is responsible for policy and general administration of the affairs and business of the Bank.   The Bank has a dedicated and professional Board of Directors which provides oversight on the Bank’s operations.  The Board understands the values of the Bank and is committed to working in an ethical and effective manner towards the achievement of these values.  The values are known by the acronym I-CREDIT.

I-CREDIT stands for:
Integrity:
Exhibiting the highest levels of objectivity, accountability, honesty, transparency, fairness and responsibility at all times
Customer Focus:
Placing the customer at the core of the Bank’s business and ensuring high quality of service at all times.
Recognition:
Recognizing and rewarding high performance.
Efficiency:
Delivering on our mandate with the least amount of resources and in the shortest time possible.
Diligence
Highest levels of proficiency and due professional rigor.
Innovation
Cutting-edge idealism and adaptability, ensuring the optimum use of information technology and current financial engineering techniques.
Teamwork
Cutting-edge idealism and adaptability, ensuring the optimum use of information technology and current financial engineering techniques.

Board Charter

The Board has overall responsibility for the Bank, including approving and overseeing the implementation of its strategic objectives, risk strategy, governance framework and corporate values and culture and is also responsible for providing oversight to senior management. The responsibilities of the Board are particularized in the BFSA as follows:

  1. formulation of policies
  2. ensuring corporate governance and business performance;
  3. directing the affairs and business operations;
  4. ensuring that the business is carried on in compliance with all applicable laws and regulations and is conducive to safe and sound practices;
  5. constituting committees of the board as prescribed;
  6. reporting to the shareholders, at an annual general meeting, on the internal controls and systems and information management systems;
  7. reporting to the Bank of Zambia on any material changes in activities, structure and conditions; and
  8. reporting to the Bank of Zambia on matters that may affect the suitability of shareholders, directors and senior managers.

The responsibilities of the Board as set out in the BFSA and the Directives are incorporated in the DBZ Board Corporate Governance Charter.