Zambia welcomes Islamic bankingBy MICHAEL CHAWE in Lusaka | Thursday, June 28  2012 at  14:28

Zambia has announced plans to allow Islamic banking.

The country whose economy has been growing at an average of six per cent in the past few years, has 18 banks both local and foreign.

Zambia's population stands at 13 million.

"The Bank of Zambia has reached an advanced stage in preparing regulations for the operation of the Islamic Bank in Zambia. They may be ready as early as next month," Finance minister Alexander Chikwanda told Parliament late Tuesday.

"Islamic banking will operate on Islamic principles, of course with adherence to local laws."

Zambia's economy has been growing steadily in the last few years, although unemployment, poverty and the lack of viable education and health care have bred discontent throughout the country.