The World Bank has approved $45 million in budget support for Zambia under the Second Climate and Economic Resilience Programmatic Development Policy Financing, backing a reform agenda the government describes as central to restoring macroeconomic stability and building long-term resilience.
The funding supports three policy pillars: strengthening fiscal management and economic resilience, promoting private sector investment in key enabling sectors and enhancing disaster risk management and climate resilience, the last reflecting Zambia’s acute vulnerability to climate-related shocks affecting agriculture, water resources and electricity supply.
Finance and National Planning Minister Situmbeko Musokotwane said the approval signals growing international confidence in Zambia’s direction. Musokotwane said, “The approval of this development policy operation demonstrates continued confidence by our cooperating partners in Zambia’s economic reform program.” He added that the government remains committed to fiscal discipline, climate resilience and creating conditions for private sector-led job creation.
The disbursement comes as Zambia continues to navigate post-debt-restructuring stabilisation, with the World Bank’s support functioning both as direct budget relief and as a signal to other development partners and commercial creditors that the reform programme retains external endorsement.
