The Evolution of the Corporate Governance Framework in the Zambian Banking Sector: A King IV Report Comparison

Abstract

This dissertation examines the corporate governance framework applicable to Zambia's banking sector and assesses the extent to which Zambia's existing regulatory regime aligns with internationally recognised governance standards. Through a comparative analysis of Zambia's legislative and regulatory instruments against the King IV Report on Corporate Governance for South Africa, the study identifies structural and functional governance gaps. The primary legislative instruments examined include the Banking and Financial Services Act No. 7 of 2017, the Bank of Zambia Corporate Governance Directives of 2016, the Companies Act No. 10 of 2017, the Securities Act No. 41 of 2016, and the National Corporate Governance Code of 2025. The research adopts a qualitative, documentary methodology and draws on institutional, agency, and stakeholder theories as its analytical framework. The study finds that Zambia's banking governance framework is predominantly compliance-based and rule-driven, with significant gaps in risk governance expertise, stakeholder inclusivity, ethical leadership, and integrated reporting. While the National Corporate Governance Code of 2025 represents a step towards a principles-based approach, it has not yet been operationalised in the banking sector. The dissertation argues that a hybrid governance model, combining the regulatory rigour of Zambia's statutory framework with the outcomes-based principles of King IV, contextually adapted to Zambia's institutional realities, offers the most viable pathway for governance reform. The study contributes to the limited body of comparative governance scholarship focusing on Zambia's banking sector and offers targeted, actionable recommendations for regulators, policymakers, and banking institutions.