The African Development Bank Group approved a loan of $108 million to Zambia aimed at strengthening the country’s economic governance and implement reforms in key public sectors.
- The funds allow the implementation of the Fiscal Sustainability and Economic Resilience Support Programme.
- The programme targets improving the generation of domestic revenue via support for the implementation of several measures: the roll-out of the electronic “smart invoice” solution and registration of 12,000 taxpayers liable for VAT, and the country’s membership of the Global Forum on Transparency and Exchange of Information for Tax Purposes.
- The project will also support the efficiency and transparency of public spending by backing the public investment management strategy to further boost the public investment management framework.
“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.
In addition, 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.
The project will provide support to the ministry through a financing mechanism for sustainable agriculture. It will disburse at least 257 million kwachas (about $9.4 million) for the 2023-2024 agricultural season.
As of 30 November 2024, the African Development Bank Group’s active portfolio for Zambia comprised 24 projects totalling $872.3 million.
