• NMBZ Holdings acquires 100% of EFC Zambia through its subsidiary Pulse Financial Services
• The acquisition strengthens Zambia’s domestic financial intermediation by providing long-term, locally anchored capital for MSMEs amid ongoing macroeconomic reforms
• The transaction aligns with Zambia’s broader policy shift to attract foreign investment, support the kwacha, and diversify funding sources

Harare - NMBZ Holdings Limited a Zimbabwe headquartered diversified financial service group  has acquired a 100% stake in Entrepreneurs Financial Centre (EFC) Zambia, completing a strategic cross-border transaction that coincides with Zambia’s broader push to re-engage foreign investors, deepen domestic financial markets, and safeguard recent currency stability according to the EFC Press release.

The acquisition, announced on 22 January 2026, was executed through NMBZ Holdings’ subsidiary, Pulse Financial Services Limited, and follows approvals from the Bank of Zambia and the Competition and Consumer Protection Commission (CCPC).

‘’This mile stone marks an exciting new chapter for EFC Zambia as it becomes part of a strong growing financial services group,’’ reads the circular.

EFC Zambia operates as a non-deposit-taking microfinance institution, providing tailored financial solutions to micro, small and medium enterprises (MSMEs).

The deal gives NMBZ full ownership of EFC Zambia, cementing the Zimbabwean financial group’s entry into the Zambian market at a time when the country is cautiously reopening its financial architecture after years of debt distress and investor scepticism.

The move  comes against the backdrop of a significant policy shift by the Zambian government, which  tripled the cap on foreign participation in local-currency government bonds aimed at attracting offshore capital into the domestic debt market while reinforcing demand for kwacha-denominated assets.

A US$1.6 billion tranche of Zambia’s restructured external debt is approaching maturity, sharpening the authorities’ focus on liquidity management, refinancing risks, and market confidence. By broadening foreign access to local bonds, policymakers are seeking to diversify funding sources while avoiding renewed pressure on the exchange rate.

NMBZ’s acquisition represents long-term, embedded capital, contrasting with the more volatile nature of portfolio inflows. While foreign investors in local bonds can exit quickly in response to global risk shifts, a fully owned financial institution anchors capital within the domestic economy, intermediating credit locally and aligning incentives with macroeconomic stability.

The timing of the transaction is notable given the kwacha’s strong performance in 2025, when it ranked among the world’s best-performing currencies.

The local unit appreciated by an estimated 10–12% against the US dollar into early 2026, reaching its strongest levels in over two years.

This rally reflected a combination of disciplined monetary policy, improved foreign exchange inflows from mining and agriculture, and greater policy credibility following IMF-supported debt restructuring.

Zambia’s progress was further acknowledged in late 2025 when Standard & Poor’s upgraded the country’s foreign-currency sovereign rating to ‘CCC+/C’, signalling cautious improvement in fiscal and external buffers.

However, the frontier-market currency strength is inherently fragile. Despite recent gains, the kwacha has experienced intermittent volatility, and remains vulnerable to shifts in capital flows, commodity price reversals, and changes in global risk appetite.

Zambia appears to be pursuing a two-track stabilisation strategy: supporting the currency through portfolio inflows while reinforcing domestic financial intermediation through long-term institutional capital.

The improving  macro outlook continues to be underpinned by copper, which dominates export earnings and foreign exchange generation.

Copper prices surged in 2025, reportedly rising by more than a third and approaching record levels, materially strengthening external balances and fiscal revenues.

Strong mining performance, alongside rebounds in agriculture and services, helped lift real GDP growth above 5% in 2025, according to IMF estimates. Yet, reliance on a single commodity remains a structural vulnerability.

A sharp downturn in global copper demand could quickly erode external buffers and complicate debt servicing.

Therefore  expanding access to finance for MSMEs through institutions such as EFC Zambia becomes strategically important in supporting economic diversification and reducing overdependence on mining.

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