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The African Development Bank (AfDB) Group has approved a loan of US$108 million to Zambia to help strengthen the country’s economic governance and implement reforms in key public sectors.
This loan approval increases the AfDB’s active portfolio for Zambia to US$872.3 million, comprising 24 projects, as of November 30, 2024.
The loan will support the implementation of the Fiscal Sustainability and Economic Resilience Support Programme, a key initiative aimed at building a resilient and diversified economy for Zambia.
The AfDB Group Board of Directors announced the approval on Friday in a statement issued in Lusaka.
Raubil Durowoju, the AfDB’s Country Manager for Zambia, commented on the approval, emphasizing the programme’s multi-sectoral approach.
“This is a multi-sectoral programme designed to improve fiscal sustainability and increase private sector participation in the economy, with a particular emphasis on agro-industrial development, climate-smart investments, public-private partnerships, and the development of micro, small, and medium enterprises,” Durowoju said.
The programme also aims to enhance Zambia’s domestic revenue generation.
Key measures include the rollout of the electronic “smart invoice” solution, which will modernize tax collection and improve fiscal transparency.
Additionally, the programme plans to register 12,000 new taxpayers who are liable for Value Added Tax (VAT), helping to broaden the tax base and improve compliance.
Another critical element of the programme is Zambia’s membership in the Global Forum on Transparency and Exchange of Information for Tax Purposes.
This membership aims to ensure that Zambia meets international standards for tax transparency and information exchange.
Durowoju added that these efforts are part of a broader strategy to attract more private sector investment, particularly in the agro-industrial sector, which is seen as a key driver of Zambia’s economic diversification.
“With a focus on developing the private sector and fostering climate-smart investments, the programme aims to lay the groundwork for sustained economic growth,” he concluded.
The AfDB’s approval of the loan is part of its ongoing support for Zambia’s economic reforms, which include efforts to strengthen fiscal discipline and create a more resilient and inclusive economy.
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