AfDB GIVES ZAMBIA $22.8 million loan
By Nawa Mutumweno – The African Development Bank (AfDB) has given the Zambian government a poverty reduction budget support loan worth $22.8 million (ZMK115.4 billion).
At the signing ceremony in Lusaka recently, Finance minister Alexander Chikwanda said the fourth poverty reduction budget support has come at the right time when the Patriotic Front (PF) government is in a hurry to transform the lives of people who are living in abject poverty.
“We really appreciate the support. I am also aware that the AfDB is among a few of our development partners who have remained committed to providing budget support to Zambia,” he said.
Government is seriously addressing governance issues to ensure that resources, both domestic and external, are put to good use for the benefit of the majority of the population.
“In this regard, the government has taken a zero tolerance on corruption. Be rest assured that these resources you have continued to provide will be applied for the intended purpose and in line with Government policies to reduce poverty. As Government, budget support is our preferred mode of aid delivery by the cooperating partners because it provides us with the opportunity to use the resources in line with our policies and planned activities as outlined in our national development plans,” he elaborated.
This mode of aid delivery gives Government the flexibility to implement the programmes aimed at achieving the MDGs, among them the reduction of poverty levels.
The programme will address public finance accountability and transparency as well as increase the revenue base to ensure predictability in the financing of social services.
The implementation of all development programmes will be in line with Government policies, and in line with national development plans, as well as the bank’s medium term strategy 2008-2012, and the regional integration strategy paper 2011 -2015.
And AfDB resident representative Dr. Freddie Kwesiga said this budget intervention brings the bank group’s commitments for Zambia to $1.52 billion since commencement of activities in 1971.
This is in addition to debt relief provided to the Government under the Highly Indebted Poor Countries (HIPC) and multilateral debt relief initiatives amounting to $387 million.
This programme tragets to improve efficiency and transparency of public financial management and to increase revenue mobilization and also enhance access to social services.
“The programme aims at supporting Zambia in implementing reforms that will lead to more efficient management of public resources, and improved social service delivery,” he pointed out.
Meanwhile, China has given Zambia ZMK75.3 billion for poverty reduction programmes out of which ZMK43.3 billion is a grant while ZMK32 billion is an interest-free loan.
Minister of Finance Chikwanda has disclosed that the funds will be used on programmes that are of a priority nature within the context of the Sixth National Development Plan (SNDP).
“The grant and loan facilities will, therefore, be put to good use to ensure maximum benefits are derived in the fight against poverty. Zambia greatly admires the strides made by China in uplifting the standard of living of its people,”Mr Chikwanda said.
Zambians are grateful for the assistance China has continued to render to the country in many areas of social and economic development.
Mr Chikwanda cited construction of the TAZARA, the Levy Mwanawasa Stadium and Lusaka General Hospital (also named after the late third republican president) as some of the examples of China’s commitment to continuing cementing friendship with Zambia.
Zambia has positioned itself to ensure it maximizes benefits arising from the 2009 Africa-China Declaration, where the Chinese government made available $10 billion to finance a series of projects in Africa from 2010 to 2012.
The country is also gratified by the China-Africa Development Fund’s plan to establish a regional office in Zambia with an investment outlay of $1 billion.
“In this regard, the Government of the Republic of Zambia reiterates its desire to access Chinese financial assistance and technical expertise to extend the TAZARA railway line to Angola,” Mr. Chikwanda said.
And Chinese Vice-Foreign Minister Zhai Jun said China is ready to continue supporting and cooperating with the Zambian government to foster development in the country.
