The World Bank has approved a $275 Million United States Dollars Concessional financing for Zambia.
Minister of Finance and National Planning, Dr. Situmbeko Musokotwane, says the financing follows Government’s continued engagement with development partners targeted at securing support for fiscal stabilization and accelerated economic growth programmes.
The approval was granted through the World Bank’s International Development Association (IDA), at a meeting of the board held on Tuesday, 25th October 2022.
Musokotwane outlines that The Development Policy Credit will mainly support Government’s post-COVID recovery and inclusive growth agenda through policy and institutional reforms aimed to restore fiscal and debt sustainability.
He states that the finances will also focus on increasing farmer productivity and access to agricultural markets, as well as ensure sustainable access to energy, in addition to enhancing access to finance and private sector development.
The Minister says the financing will be disbursed in two phases, with the first amount of US$175 million to be available immediately after the signing the Financing Agreements and fulfilment of withdrawal formalities.
He notes that the second allocation of US$100 million will be disbursed in the next three months to allow Government additional time to complete key components of the reform program.
Musokotwane says the concessional financing has a grace period of 5 years and a maturity period of 30 years, adding that the acquisition of the loan is part of the Annual Borrowing Plan approved by Parliament.