The World Bank has approved $275 million in concessional financing targeted at securing support for fiscal stabilisation and accelerated economic growth programs, a senior government official has said.
Situmbeko Musokotwane, the Minister of Finance and National Planning said the approval was granted through the World Bank’s International Development Association (IDA) at a meeting of its board held on Oct. 25.
“The IDA’s development policy credit is not only intended to help Zambia recover from the COVID-19 pandemic and negative effects of the war in Ukraine, but also targeted at assisting the country to emerge from the debt crisis and shift development focus to a more sustainable and inclusive growth path,” he said in a release.
Musokotwane said the financing will be disbursed in two tranches, with the first tranche of $175 million in support of completed reforms to be disbursed immediately after the signing of the financing agreement.
The second tranche of $100 million will be disbursed in the next three months to allow the government additional time to complete key components of the reform programme.
He added that the financing will mainly support policy and institutional reforms aimed at restoring fiscal and debt sustainability, ensuring sustainable access to energy as well as enhancing access to finance and private sector development.
The reforms, he said, were the foundation for the government’s development aspirations reflected in its eighth national development plan.
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