African Development Bank To Expand Budget For Zambia

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The Africa Development Bank (AfDB) has announced on September 23rd, 2015 that it is preparing the next country strategy for Zambia for the years 2016-2022 as a part of the bank’s ten years strategy (TYS) which was established in 2013 to support Zambia to become a middle-income country without aid dependency.

The announcement was done by AfDB Resident Representative to Zambia, Mr. Damoni Kitabire, during the bank’s financial products presentation to stakeholders in Zambia’s capital, Lusaka where he explained that several needs in infrastructure have been identified in the country.

Therefore, the AfDB is planning to increase its support to Zambia in mainly the private sector, since the bank has observed that its private portfolio keeps a small proportion of the total amount committed in the country, Mr. Kitabire explained.

According to the AfDB, it has invested in Zambia within loan and grants a total of USD 1 billion since its inception in 1971 and currently holds a total of 13 approved projects totaling USD 380 million in sectors as transport, power and water and sanitation.

However, only 3 out of 13 projects totaling USD 30 million are destined to the private sector.

Mr. Kitabire, closed its speech highlighting the recent achievements of Zambia in economic terms, which allow the country access further lines of credit with the AfDB even though the bank’s management has decided to stabilize the recent increase in lending targets.

According to AfDB President Dr. Donald Kaberuka, the AfDB has decided to reduce in 5.1% the lending budgets for the next three years, due to increase of the lending target from USD 21 billion in the period 2014-2016 to USD 23 billion for the period 2015-2017.

According to the last AfDB’s annual report, Zambia accounts for 2.39% of the total outstanding loans totaling USD 570 million spread in 22 projects as of 2014.

With 13 projects approved in 2014, Zambia accounts for 5.6% of the 232 projects approved by the bank in the same period.

These projects represent for the AfDB a total amount of USD 7.3 billion, from which Zambia accounts for the 5.2%.

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