The World Bank has approved $45 million in budgetary support for Zambia, a move the government says signals renewed international confidence in its economic reform programme as the country battles high debt, slow growth and repeated climate shocks.
Finance Minister Situmbeko Musokotwane said the support reflects growing endorsement of the Hichilema administration’s efforts to restore macroeconomic stability after years of fiscal strain that culminated in Zambia becoming Africa’s first pandemic‑era sovereign defaulter in 2020.
Musokotwane said the new funding will back reforms in fiscal management, private‑sector development and climate resilience – areas central to Zambia’s attempts to stabilise public finances, attract investment and reduce vulnerability to droughts and floods that have repeatedly disrupted agriculture, water supply and electricity generation.
He added that the government is also working to improve the financial sustainability of the water sector and strengthen the autonomy of the National Water Supply and Sanitation Council as part of broader governance reforms.
The financing, provided through the International Development Association, forms part of the Second Zambia Climate and Economic Resilience Development Policy operation.
Zambia has been seeking to rebuild investor confidence while restructuring more than US$13 billion in external debt and implementing measures demanded by international lenders.
The World Bank’s latest support is expected to help ease short‑term budget pressures as the government continues negotiations with creditors and pushes ahead with structural reforms.
JN/APA