The African Development Bank Group has approved a $108 million loan to Zambia to improve the country’s economic management and implement fundamental public sector reforms.
The fund will be used to develop the Public Investment Management Framework by supporting public investment management strategies and promoting efficiency and transparency of public expenditure.
Also, the programme intends to stimulate agro-industrial development for economic growth by lending support to the agricultural mechanisation strategy implemented by the Ministry of Agriculture, and the establishment of ten mechanisation centres.
In addition, it will promote the development of the agricultural sector and support the growth of the economy. The program will provide support to the Ministry by paying at least 257 million kwacha (approximately 9.4 million dollars) for the 2023-2024 agricultural year.
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Furthermore, the funds will allow the implementation of the Fiscal Sustainability and Economic Resilience Support Programme which is a key pillar in efforts to build a resilient and diversified Zambian economy.
As of November 30, 2024, the African Development Bank Group’s portfolio in Zambia includes 24 projects worth 872.3 million dollars.
“This is a multi-sectoral programme designed to improve fiscal sustainability and increase private sector participation in the economy, with a particular emphasis on agro-industrial development, climate-smart investments, including public-private partnerships, and the development of micro, small and medium enterprises,” Raubil Durowoju, the African Development Bank’s Country Manager for Zambia, said.
