The goodwill from cooperating partners for Zambia’s economic recovery programme looks sustainable to patch up economic ravages spurred by COVID 19 and the Ukraine-Russia conflicts with an approved disbursement of US$275 million concessional financing in four key areas including agricultural development.
The development Policy Credit to be extended in the next three months through the Bank’s wing, International Development Agency (IDA) is earmarked for increased farmer productivity and access to agricultural markets; restore fiscal and debt sustainability; ensure sustainable access to energy; and enhance access to finance and private sector development.
Finance minister Situmbeko Musokotwane in a statement availed to FRA, Thursday, said The IDA’s support is further targeted at assisting the country to emerge from the debt crisis and shift development focus to a more sustainable and inclusive growth path which forms part of the country’s quest in collaboration with donors to support institutional reforms.
According to the terms, the funds will be disbursed in two tranches with the first payment of US$175 million being released immediately to support completed reforms after the signing the Financing Agreements and fulfilment of withdrawal formalities.
The second tranche of US$100 million will be ready in three months to allow the Government additional time to complete key components of the reform program.
“The development project terms are highly concessional with a grace period of 5 years and a maturity period of 30 years. The financing is part of the Annual Borrowing Plan approved by Parliament in fulfillment to the provisions of the Public Debt Management Act of 2022.” The statement says
The agreement signed with the World Bank on 25 October this year forms part of the country’s bid to actualize accelerated economic growth which is the core of the country’s developmental vision as reflected in pillars of the country’s 8th National Development Plan which has prioritized agriculture as one of the growth sectors.
The financing by IFC is in collaboration with the country’s effort to achieve comprehensive debt restructuring under the G-20 Common Framework.
