• The Bank is providing sizeable positive net flows to Zambia.
• Under IDA19, the Bank is committing approximately $959 million.
• U$$294 million has already been committed for scaling up social cash transfers among other projects.
Ministry of Finance has disclosed that the World Bank is expected to provide funding to Zambia amounting to US$275 million over the next three (3) years.
According to a statement issued by the Ministry, this will be done as soon as the International Monetary Fund (IMF) Supported Programme is approved by the IMF Board, adding that the Bank is providing sizeable positive net flows to Zambia.
It said under International Development Association (IDA19), the Bank is committing approximately $959 million to support Zambia’s recovery from the multiple debt and economic crises and help to institute reforms for inclusive growth and poverty reduction.
According to the Ministry, U$$294 million has since been committed for scaling up social cash transfers and projects to strengthen the COVID-19 response, including vaccination and emergency health financing to improve service delivery, while the remaining U$$665 million will be presented in three operations to the World Bank Board for approval within this month.
It added that Government has been engaging multilateral partners for concessional financing as part of the effort to resolve Zambia’s fiscal limitations.
“As announced before, the engagements have culminated in several benefits such as the pledge by the World Bank to support the national budget through a Development Policy Operation. As soon as the IMF Supported Programme is approved by the IMF Board, it is envisaged that the World Bank will supply funding amounting to US$275 million over the next three (3) years.”
“The program includes two results-based operations, the first to reinvigorate growth in agriculture and support reform of the agricultural subsidy regime and the second to strengthen decentralized public service delivery while enhancing public financial management, accountability, and citizen engagement and will support the increased resource allocation towards Constituency Development Fund.”
The Ministry added that the third operation will finance additional social protection spending in response to various shocks.
“Furthermore, upon agreement of the Country Assistance Strategy during the second half of 2022, financing is also expected from the Africa Development Bank (AfDB) over the next 3 years. This implies that over the medium-term, an estimated US$500 million or more will be available to Zambia through the Africa Development Fund, for economic and social development.