ZAMBIA Law and Practice Contributed by: Mweshi Banda-Mutuna, Musenge Leah Nkonde and Lumbanya Judah Mulenga, Mweshi Banda & Associates Legal Practitioners
tlement of their disputes by making it mandatory for a plaintiff to send a letter of demand before commenc- ing litigation. The Amended Rules also introduced the need for evidence in chief to be provided through the use of witness statements, for non-commercial dis- putes, so that trials conducted before the High Court Principal Division are fast tracked (similar to those before the Commercial Division). Additionally, it empowers judges to resolve interlocu- tory applications in the absence of the parties in cases where the parties’ attendance to make oral arguments is unnecessary, while setting out timeframes for deliv- ery of judgments and rulings – 120 days and 90 days respectively – and the procedure for judges obtain- ing extensions of these mandatory timeframes from the Chief Justice. The Amended Rules also mandate judges to notify parties of the date for delivery of judg- ment or rulings. In relation to arbitration, there has been little change since the enactment of the Arbitration Act in 2000 – until recently. The following are the key trends. The Alternative Dispute Resolution Bill 2026 In early 2026, the Alternative Dispute Resolution Bill was formally presented to the Minister of Justice. The Bill seeks to align Zambia’s arbitration framework with the 2006 revisions to the UNCITRAL Model Law, establish a clear statutory basis for mediation, and introduce adjudication mechanisms for construction and commercial disputes. Currency Regulation and Its Impact on Decisions A notable recent development with implications for litigation, arbitration and ADR is the introduction of the Bank of Zambia Currency Directives, 2025 (the “Direc- tives”). Under these Directives, all domestic transac- tions must be settled in Zambian kwacha (ZMW), sub- ject to limited exceptions. The Directives do not expressly regulate arbitral awards. However, they affect the settlement currency of monetary awards granted irrespective of the par- ties’ choice of dispute resolution mechanism because their application is contingent on whether the pay- ment of an award constitutes a “domestic transaction” within the meaning of the Directives. Where a decision
gives rise to a payment obligation between parties resident in Zambia, and settlement is effected within the jurisdiction, such payment falls within the scope of the Directives and must therefore be made in Zambian kwacha, notwithstanding that the underlying contract or award may be denominated in foreign currency. Growth of Statutory Arbitration There is an emerging legislative trend in Zambia towards promoting or mandating arbitration as the mechanism of choice for resolving disputes in key economic sectors. For instance, the Public Procure- ment Act prescribes arbitration for settlement of public procurement disputes. In contrast, the Miner- als Regulation Commission Act includes arbitration as an option for resolving disputes relating to mining and surface rights. These statutory frameworks reflect an emerging policy in Zambia to entrench arbitration as a central mechanism for resolving disputes in key economic industries. Growing Acceptance of Arbitration Among Domestic Parties While litigation remains predominant overall, arbitra- tion is becoming more widely accepted among domes- tic commercial entities, particularly in cross-border transactions. This trend is being driven by growing familiarity with arbitral institutions, the increase in international commercial activity involving Zambian entities, increased training and accreditation of Zam- bian arbitrators and mediators, and the constitution of a local professional community capable of supporting institutional arbitration.
2. Litigation 2.1 Limitation Periods
Limitation periods are prescribed in the Law Reform (Limitation of Actions, etc.) Act, Chapter 72 of the Laws of Zambia as read with the Limitation Act 1939 of the United Kingdom (applicable to Zambia by virtue of the English Acts (Extent of Application) Act, Chapter 11 of the Laws of Zambia). The principal limitation periods applicable to civil claims in Zambia are as follows:
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