The African Development Bank Group’s Board of Directors has approved a $108 million loan to Zambia to improve the country’s economic governance and support reforms in key public sectors.
The loan will fund Zambia’s Fiscal Sustainability and Economic Resilience Support Programme, a key initiative aimed at building a more diversified and robust economy.
The programme focuses on increasing domestic revenue generation through several measures, including the introduction of an electronic “smart invoice” system, registering 12,000 VAT-liable taxpayers, and strengthening Zambia’s participation in the Global Forum on Transparency and Exchange of Information for Tax Purposes.
The project also aims to boost agro-industrial growth by supporting the Ministry of Agriculture’s mechanization strategy, which includes the establishment of 10 mechanization centers. The initiative seeks to improve agricultural productivity and expand production for both domestic and international markets by providing rental equipment to farmers with limited access to such resources.
In addition, the programme will help reduce Zambia’s reliance on the mining sector. It includes a financing mechanism focused on sustainable agriculture, with at least 257 million kwachas (about $9.4 million) allocated for the 2023-2024 agricultural season.
The initiative will offer customized funding, especially for small and medium-sized farmers who struggle to access affordable financing. Financial institutions in the private sector will manage this market-driven scheme.
The project will also work to improve the efficiency and transparency of public spending by reinforcing Zambia’s public investment management strategy.
As of November 30, 2024, the African Development Bank’s active portfolio in Zambia includes 24 projects with a total value of $872.3 million.
