Zambia Money

Money

Originally, the Kwacha — meaning "sunrise," so-named to celebrate Zambia's independence — was tied to the US dollar, so conversion was simple. However, in the late-90's, the kwacha was floated and devalued rapidly. Over the past few years, though, the kwacha has remained relatively stable, hovering around $1 = 4500K. Dollars are still commonly used for larger purchases and will be accepted by anybody in a pinch. If you want to sound like a local, refer to 1000 kwacha as a pin, so for example 10,000K is "ten pin". In the '90's, the kwacha devalued so rapidly that the government didn't have time to produce new, larger bank notes. To pay for things, Zambians often had to bundle — or "pin" together — large numbers of small bills. Notes are now available in denominations of up to 50,000K, but hang on to small change if you can because there are occasional shortages. ATMs may be found in major cities, but you should not depend on them to be functional. Some shops and restaurants might accept debit or credit cards, as do practically all high-end hotels and safari lodges, but surcharges of 5-10% are common. Although using forms of payment other than cash is growing in popularity, you should not depend on credit to get around the country. Instead, the most promising way to obtain cash is by Traveler's Cheque. Although many hotels and banks will process TCs, keep in mind the laws of supply and demand — the more remote you are, the poorer the exchange rate will be. Plan carefully, and try to get an adequate cash supply when passing through larger cities. Most shopkeepers advertise fixed prices and are unwilling to negotiate, but this is not a given. On the other hand, most "freelance" salesmen — vendors selling curios; taxi drivers; etc. — who do not post their prices are usually willing to negotiate. As a (very) general rule of thumb, assume the first price they mention is at least double the amount they will accept. You should not be afraid to barter — after all, Zambians bargain among themselves — but try not to get carried away with saving a few pennies. Tipping is not required — indeed, it was at one point illegal — but often expected. Porters expect US$0.50 or so per bag, and better restaurants typically add in a 10% service charge or expect an equivalent tip. Finally, keep in mind the Zambian custom of mbasela (em-buh-SAY-la) — giving a freebie when more than one item is purchased. If you buy a few small items, do not be shy about asking for your mbasela. Costs Zambia is a little expensive compared to its neighbors. A bare-bones budget traveler will be looking at a minimum of US$20/day just for a bed and three meals, and transport is (again, comparatively) expensive, in part due to the great distances involved. At the other end of the spectrum, all-inclusive safari lodges or Lusaka/Livingstone's five-star hotels will take care of all your needs but charge US$200/day and up for the privilege. Finding a middle ground between these two extremes is difficult.