By Jeff Kapembwa
The World Bank has mitigated Zambia’s accelerating climate impact on growth sectors with a US$45 million Second Zambia Climate and Economic Resilience Programmatic Development Policy Financing.
Estimates show that the climate change impact has defied all Government efforts to reduce acceleration rate of damage on the environment and the economy-causing severe economic damage to Zambia.
Expert opinions show an estimated US$ 14 billion has been lost economically through severe droughts and floods that have hit the Southern African state in the past 30 years.
The funds when applied, will effective support the setting up a unified national early-warning system and strengthening resilience to climate-related shocks, the Bretton Woods institute says in a statement
According to the financial institution, the US$45 million World Bank development policy operation (a second cohort of Zambia Climate and Economic Resilience Programmatic Development Policy Financing) is ultimately assist Zambia fight and reduce climate change.
This will be done through coherent efforts by the authorities and help bolster economic resilience against shocks, improving agricultural adaptation, and establishing a unified national early-warning system through enhanced disaster risk management.
The financing will assist strengthen agriculture resilience by enhancing reductions and potential vulnerability of the sector to droughts and unpredictable weather.
Finance Minister Dr. Situmbeko Musokotwane, is hopeful the financing will accelerate the programme through promoting policy reforms that integrate climate change adaptation into national development plans.
This drive will include inducing better management of public resources to handle disasters.
This will further enhance support to green growth and sustainable agricultural practices. The funding will further help reduce dependency on climate-sensitive sectors.
Dr. Musoktwane is hopeful the financing was timely and a sign of renewed international confidence in Zambia’s economic reform programme amid the country’s heightened battles against escalating debt-public and domestic, slow growth and repeated climate shocks.
The World Bank’s extended financing endorse the Government’s unrestrained effort to reverse climate change impact on the country-which suffered devastating effects during the 2023-24 farming season affecting over 2.2 hectares of planted areas with maize-the country’s staple food.
The new funding will assist Zambia actualize economic reforms in fiscal management, private sector development and climate resilience – all areas central to Zambia’s attempts to stabilise public finances.
The Hakainde Hichilema’s administration seeks to uphold its 2021 pre-election campaign promises of seeking to revitalize the economy through sustained luring of investment and reduce vulnerability to droughts and floods that have repeatedly disrupted agriculture, water supply and electricity generation.
The government is seeking 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.
Zambia has launched its National Green Growth Strategy (2024–2030), an intervention seeking to transition to a low-carbon, resilient, and inclusive economy.
Then Minister of Green Economy and Environment, Collings Nzovu had when launching the countervailing measure stressed the NGSS ultimate to promote sustainable agriculture, energy, and natural resource management.
It was targeted at boosting the country’s GDP and creating jobs while mitigating climate change, relying on four critical pillars as drivers of the idea.
Four Strategic Pillars: The strategy is built on resilient and climate-compatible growth, enhanced resource efficiency, enhanced natural capital, and improved inclusivity.
• Key Focus Sectors: It seeks to focus on greening the energy mix (solar and wind), sustainable agriculture (solar irrigation), sustainable transport, and waste/water management.
• Goal: The NGGS is envisioned to achieve a 28% reduction in greenhouse gas emissions and enhance natural resource utilization by 2030, aligned with the country’s Vision 2030 and the Eighth National Development Plan.
The blueprint is to arguably help Zambia sustain its focused economic development targets while mitigating the negative impacts of climate change, such as those faced in agricultural production.