Zambia: the AfDB grants a $108 million loan to strengthen economic governance
On December 11, 2024 in Abidjan, the Board of Directors of the African Development Bank Group granted Zambia a loan of US$108 million to implement the Fiscal Sustainability and Economic Resilience Support Program. It aims to strengthen the country's economic governance and implement real sector reforms to build a resilient and diversified Zambian economy.
" This is a multi-sectoral program, designed to strengthen fiscal sustainability, increase private sector participation in the economy, with particular emphasis on agro-industrial development , climate-smart investments, including public-private partnerships, and the development of micro, small and medium-sized enterprises. agro-industrial development, climate-smart investments, including public-private partnerships, and the development of micro, small and medium-sized enterprises", said Raubil Durowoju, Country Manager for the African Development Bank in Zambia.
On the one hand, the program will help improve domestic revenue mobilization by supporting the implementation of several measures: deployment of the electronic invoicing solution ("smart invoice") and registration of 12,000 VAT taxpayers, the country's membership of the Global Forum on Fiscal Transparency and the exchange of information for tax purposes. In addition, the project will support the efficiency and transparency of public spending by supporting the public investment management strategy to further improve the public investment management framework.
On the other hand, the program plans to stimulate agro-industrial development for economic growth by supporting the agricultural mechanization strategy implemented by the Ministry of Agriculture and the creation of ten mechanization centers. The aim is to improve agricultural productivity, increase production and supply national and international markets, by making rental equipment available to farmers who do not have access to it.
The project will also support the Ministry through a financing mechanism for sustainable agriculture. It will disburse at least 257 million kwachas (around $9.4 million) for the 2023-2024 agricultural season. This is a market-based initiative, administered by the private sector through financial institutions, which offers tailor-made financing.This is a market-based initiative, administered by the private sector through financial institutions, which offers tailored financing in the form of agricultural inputs to the farming sector, in particular to small and medium-sized farmers who have limited access to affordable financing.
On November 30, 2024, the African Development Bank Group's active portfolio for Zambia comprised 24 projects worth a total of $872.3 million.
Source: www.agenceecofin.com/
