The African Development Bank Group (AfDB) has approved a loan of $108 million to Zambia to strengthen the country’s economic governance and implement reforms in key public sectors. This funding will support the Fiscal Sustainability and Economic Resilience Support Programme, a crucial initiative aimed at building a resilient and diversified Zambian economy.
According to Raubil Durowoju, the African Development Bank’s Country Manager for Zambia, the programme is multi-sectoral and focuses on improving fiscal sustainability, increasing private sector participation in the economy, promoting agro-industrial development, and supporting climate-smart investments. One of the main objectives is to enhance revenue generation through measures such as implementing the electronic “smart invoice” solution, registering VAT taxpayers, and ensuring transparency in public spending.
The programme also aims to boost agro-industrial development by supporting the agricultural mechanisation strategy and establishing mechanisation centres to improve productivity and supply national and international markets. Additionally, a financing mechanism for sustainable agriculture will provide tailored funding to small and medium-sized farmers who have limited access to finance, further diversifying the economy away from reliance on the mining industry.
As of November 30, 2024, the African Development Bank Group’s active portfolio for Zambia includes 24 projects totaling $872.3 million. This loan is a testament to the bank’s commitment to supporting economic development and social progress in Africa.
For media inquiries, please contact Alexis Adélé from the Communication and External Relations Department at media@afdb.org. To learn more about the African Development Bank Group and its initiatives, visit www.AfDB.org.
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