The African Development Bank Group’s Board of Directors has approved a $108 million loan to Zambia aimed at strengthening the country’s economic governance and supporting reforms across key public sectors.
This financing will support the Fiscal Sustainability and Economic Resilience Support Programme, a vital initiative designed to foster a more robust and diversified economy in Zambia.
Key objectives of the programme include boosting domestic revenue generation through measures such as the implementation of an electronic “smart invoice” system, registering 12,000 VAT-eligible taxpayers, and enhancing Zambia’s engagement in the Global Forum on Transparency and Exchange of Information for Tax Purposes.
The programme also targets the growth of the agro-industrial sector, particularly by backing the Ministry of Agriculture’s agricultural mechanization strategy and establishing ten mechanization centres. This will increase agricultural productivity and help farmers—especially those without access to modern equipment—produce goods for both domestic and international markets.
A key goal is to reduce Zambia’s reliance on the mining sector, with at least 257 million kwachas (around $9.4 million) allocated for the 2023-2024 agricultural season. The project will facilitate market-driven funding, offering small and medium-sized farmers access to affordable financing for agricultural inputs through financial institutions.
Additionally, the programme will improve public investment management, enhancing the efficiency and transparency of public spending.
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.