LUSAKA, ZAMBIA – Despite enforcement actions against several key loopholes behind illicit financial flows in Zambia, the country’s revenue agency, ZRA, has found a rising trend in financial crimes, with an estimated K29 billion in revenue loss in 2024 compared to K106 million in 2023.
The Zambia Revenue Authority (ZRA) has revealed that it has concluded investigations into 326 suspicious illicit financial flow transactions, as highlighted in the 2024 Financial Intelligence Centre (FIC) report.
However, 240 out of the 326 concluded illicit transactions are suspected to involve shell companies—entities that are registered but do not necessarily exist for the purpose of money laundering and tax evasion.
“We have concluded 326 cases as a result of the dissemination of the FIC report in 2025, which is a substantial rise from 17 cases in 2023,” emphasized ZRA Director of Investigations, Patience Siame.
Speaking during a Tax Symposium for Non-State Actors organized by ZRA and the Centre for Trade Policy and Development (CTPD), a think tank on policy and trade, Ms. Siame stated, “In Zambia, this topic is gaining momentum, and it is the responsibility of every Zambian to be aware of what is going on.”
Ms. Siame added, “Over the years, we (Zambia) have seen an increase in trends related to illicit financial flows; for instance, in the last two years, we reported about USD $5 billion.” She underscored the seriousness of this crime.
Meanwhile, Ms. Siame disclosed that the tax administration agency has implemented several interventions to combat illicit financial flows and associated crimes. These include the use of electronic tax clearance certificates, which are mandatory for all international transfers, and an import and export proceeds tracking framework for compliance and monitoring.
Additionally, the use of smart invoicing in tax administration is another tool that the Authority relies on to significantly mitigate tax evasion.
Ms. Siame further emphasized the importance of Civil Society Organization (CSO) engagement, stating that cooperation remains key for tax compliance in the southern African nation.
Speaking at the same symposium, ZRA Commissioner General Dingani Banda reaffirmed the agency’s commitment to leveraging technology to enhance domestic resource mobilization.
Commissioner Banda highlighted the significance of data-driven approaches in tax administration.
“By utilizing advanced data analytics, we are streamlining our processes and ensuring more accurate and efficient revenue collection,” he stated.
He noted that ZRA aims to broaden its tax base to meet the ambitious 2025 revenue target of K156 billion.
“Every kwacha collected in taxes has the potential to transform lives and uplift communities across our nation,” Mr. Banda emphasized.
CTPD Board Chairperson Brian Mwiinga, commended ZRA for hosting the symposium to provide a platform for Zambians to contribute to discussions on tax administration. He stressed the importance of inclusivity in tax administration.
“Effective tax administration must be shaped not only by the government but also in consultation with the public,” Mr. Mwiinga said.
