The African Development Bank (AfDB) has granted a $108 million loan to Zambia to strengthen economic governance and implement reforms in key public sectors. The funding aims to support Zambia’s Fiscal Sustainability and Economic Resilience Support Programme, a pivotal initiative designed to build a more diversified and resilient economy.
As part of the programme, Zambia will focus on increasing domestic revenue through measures such as introducing a “smart invoice” system, expanding VAT registration to 12,000 new taxpayers, and participating in the Global Forum on Transparency and Exchange of Information for Tax Purposes.
The loan will also target the agricultural sector, promoting agro-industrial growth by advancing the Ministry of Agriculture’s mechanization strategy. Plans include establishing ten mechanization centres to provide rental equipment for farmers, boosting agricultural productivity, and expanding production for local and global markets. A sustainable financing mechanism will allocate 257 million kwachas ($9.4 million) for the 2023-2024 farming season, with private-sector management ensuring affordable access to inputs for small and medium-sized farmers.
To further enhance governance, the initiative will improve the efficiency and transparency of public spending by strengthening Zambia’s public investment management strategy.
By the end of November 2024, AfDB’s active portfolio in Zambia consisted of 24 projects, totaling $872.3 million, underscoring its commitment to the nation’s economic development.
