What's Happening?
The European Investment Bank's international partnerships and development arm, EIB Global, has partnered with Zambia Industrial Commercial Bank Ltd (ZICB) to mobilize €30 million to support private sector
development in Zambia's agricultural sector. This agreement, announced during the EU-Zambia Lobito Corridor Business Forum, aims to facilitate access to finance and markets for agri-food SMEs, supporting a wide base of smallholder producers. The initiative is part of the EU-funded Agri Value Chain Facility, which includes long-term funding, a risk-sharing facility, and technical assistance. The partnership is expected to provide affordable financing, create jobs, and support sustainable livelihoods across the agricultural value chain.
Why It's Important?
This partnership is significant as it aims to strengthen Zambia's agricultural sector, which is crucial for poverty reduction and food security. By providing access to finance and markets, the initiative supports smallholder farmers and agri-food SMEs, promoting economic development and job creation. The focus on gender-responsive lending strategies and targeting businesses led by women addresses the challenge of limited access to agricultural finance for female farmers. The investment also includes capacity building and a risk-sharing facility to mitigate the impact of climate change on the agricultural sector.
What's Next?
The agreement is expected to enhance Zambia's agricultural sector by providing affordable financing and supporting sustainable livelihoods. The focus on gender-responsive lending strategies aims to increase outreach in the agricultural sector, particularly for female farmers. The initiative is part of a broader Team Europe-Zambia partnership to create a more efficient agri-food system. The investment by EIB Global also includes a $110 million commitment to strengthen agricultural development through a credit line to ETC Group for farm logistics and infrastructure projects in sub-Saharan countries, including Zambia.
Beyond the Headlines
The partnership between EIB Global and ZICB highlights the importance of international cooperation in supporting sustainable agricultural development. By focusing on gender-responsive lending strategies, the initiative addresses the challenge of limited access to finance for female farmers, promoting gender equality in the agricultural sector. The investment also aims to mitigate the impact of climate change on agriculture, supporting the government's long-term goal of transforming Zambia into a leading regional agricultural hub.
