Home Youth empowerment World Bank pledges over $900m to support Zambia’s recovery from multiple debt – Mwebantu

World Bank pledges over $900m to support Zambia’s recovery from multiple debt – Mwebantu

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The Ministry of Finance and National Planning revealed that the World Bank is committing about $959 million to support Zambia’s recovery from multiple economic and debt crises.

And the ministry says that once the program supported by the International Monetary Fund (IMF) is approved, it is expected that the World Bank will provide financing amounting to $275 million over the next three years.

In a media statement released yesterday, Minister of Finance and National Planning Situmbeko Musokotwane said the funds will help institute reforms for inclusive growth and poverty reduction.

Dr Musokotwane also clarified that the government reached a Staff Level Agreement (SLA) with the International Monetary Fund just three months after taking office in August 2021.

Commitments from multilateral lenders to provide concessional financing to Zambia as part of efforts to resolve the country’s financing limitations based on the results of the DSA Debt treatment. This action has begun.

Convene, immediately after the OCC, a committee of commercial lenders (Eurobonds, commercial banks and private lenders, etc.). This awaits the completion of discussions by the OCC,” he said.

Dr Musokotwane said the government regularly engaged both official and private creditors who received data on economic policy and debt, with a view to facilitating decision-making and successive meetings of the two groups of creditors.

He said the government has engaged multilateral partners for concessional funding as part of efforts to address Zambia’s budget limitations.

“As previously announced, the commitments resulted in several benefits such as the World Bank’s commitment to support the national budget through a development policy operation. Once the IMF-supported program is approved by the IMF Executive Board, it is expected that the World Bank will provide financing in the amount of $275 million over the next three years,” he said. he declares.

He further revealed that US$294 million had already been committed to scale up social cash transfers and projects to strengthen the response to COVID-19, including immunization and emergency health financing to improve service delivery.

“The remaining US$665 million will be presented in three operations to the World Bank Board of Directors for approval by June 2022. The program includes two results-based operations, the first aimed at reinvigorating the growth of the agriculture and to support the reform of the agricultural subsidy regime and secondly, to strengthen the delivery of decentralized public services while improving public financial management, accountability and citizen engagement and will support the increase in the allocation of resources to the Constituency Development Fund. The third operation will fund additional social protection spending in response to various shocks,” said Dr Musokotwane.

He said that after the Country Assistance Strategy is agreed in the second half of 2022, funding is also expected from the African Development Bank (AfDB) over the next three years.

Dr Musokotwane said the government will continue to work tirelessly to bring the country back to a state of fiscal stability that will facilitate sustainable growth.

(Mwebantu, Monday, June 20, 2022)