Zambia has been granted a 100 million dollar concessional loan from the World Bank to help with its macroeconomic stability, growth, and competitiveness programs.
The credit was made available today as part of the $2.75 billion development policy financing (DPF) for Zambia that the Board of Executive Directors of the World Bank approved on October 25.
The investment has been granted, according to World Bank Group President DAVID MALPASS, to support Zambia’s reforms to restore budgetary and debt sustainability and encourage private sector-led growth.
The fresh assistance, according to Mr. MALPASS, will increase Zambia’s overall disbursements on favorable conditions from the World Bank’s International Development Association -IDA- for this year to $740 million.
He claims that despite lengthy delays from official bilateral creditors to negotiate and settle debt treatment under the G20’s Common Framework, Zambia has continued to carry out agreed-upon structural programs toward macroeconomic stability.
Zambia urgently needs debt relief, according to the head of the World Bank, in order to restore medium-term financial sustainability and draw in the fresh investment required for economic growth and job creation.
The government’s policy and institutional changes aimed at restoring fiscal and long-term debt sustainability, boosting farmer productivity, and improving access to agricultural markets are supported by the Zambia Macroeconomic Stability, Growth, and Competitiveness Program.
Other goals include providing sustainable energy availability, improving access to finance, and developing the private sector.