Zambia: EU resumes budget support programme with €20 million disbursement

The European Union (EU) has resumed its budget support programme for Zambia, with an initial payment of €20 million from a total package of €60 million.

According to EU Ambassador to Zambia, Karolina Stasiak, the full €60 million would be disbursed to the National Treasury between 2024 and 2026.

In a statement issued in Lusaka on Tuesday, Stasiak described the resumption of budget support as a significant milestone in the EU-Zambia partnership, reflecting the EU’s recognition of Zambia’s structural reforms in public finance management initiated in 2021.

“These reforms have strengthened economic governance, transparency, and accountability,” she noted, adding that Zambia has remained committed to restoring macroeconomic stability despite challenges such as a global health emergency and severe drought.

Stasiak explained that the budget support programme was based on a strong policy dialogue between the EU and the Zambian government, and funds are released in alignment with mutually agreed-upon reforms.

The support focuses on key sectors like education, health and public procurement, with the funds being transferred directly to Zambia’s National Treasury and incorporated into the national budget.

“In this time of tight fiscal constraints, it is important to note that EU Budget Support is a non-reimbursable grant, not a loan,” she clarified.

Stasiak emphasized that the EU only provided budget support to countries that demonstrate tangible progress in implementing reform policies.

The funds are expected to help mitigate the impact of ongoing crises on Zambia’s most vulnerable populations.

Finance Minister, Situmbeko Musokotwane, expressed optimism that the renewed EU partnership would allow Zambia to improve access to quality education, affordable healthcare, and a sound public financial management system.

The EU’s Budget Support Programme aimed to enhance public services in Zambia while supporting the country’s overall development.

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