Zambia National Commercial Bank (ZANACO) will raise $100 million through the country’s first-ever sustainability bond, Chief Executive Officer Mukwandi Chibesakunda announced in Lusaka on Friday. The landmark initiative aims to channel capital into projects promoting environmental protection and social development, marking a new chapter in Zambia’s green finance journey.
The bond will be issued in two tranches — an initial $50 million private placement within six months, followed by a $50 million public offering. Chibesakunda said the bank is currently in talks with potential investors, with details to be disclosed once negotiations are complete.
Funds raised will support renewable energy, sustainable agriculture, and climate-resilient infrastructure — key pillars of Zambia’s Green Growth Strategy (2024–2030) and Climate Change Act.
“This is a promise to channel resources into projects that safeguard our environment and uplift our communities,” Chibesakunda said, describing the bond as a milestone for the nation’s financial markets.
Sustainability bonds have gained traction globally as countries seek to finance projects that balance growth with environmental stewardship, but Africa remains a minor player. According to the Africa Policy Research Institute, the continent accounts for less than 1% of the global $2.2 trillion green bond market, revealing a vast funding gap for climate-related development.
The World Bank estimates that Africa will require $2.8 trillion by 2030 to implement commitments under the 2015 Paris Agreement, which aims to cut emissions and strengthen climate resilience. However, analysts warn that current budgets and donor pledges fall short of meeting that target, underscoring the urgency of domestic initiatives like ZANACO’s bold step into sustainable finance.