Germany increases its support to Zambia

The Government of the Republic of Zambia and the Government of the Federal Republic of Germany signed two bilateral Agreements regarding Financial and Technical Cooperation with an overall financial volume of approx. 120.5 million Euro (1.6 billion Kwacha / 130 million US-Dollar) on 12 November 2015.

This amount constitutes an increase of about 50 percent of German development support to Zambia since its last commitment in 2011. 40 million euro will be a preferential loan targeting the energy crisis in Zambia and will be used for infrastructure rehabilitation and development in the Southern Division of ZESCO. The remaining amount of 80.5 million Euro are non-repayable grants of the German Federal Government to Zambia with the aim to foster development and to fight poverty.

Hon. Minister of Finance, Mr. Alexander Chikwanda, and the German Ambassador to Zambia, H. E. Mr. Bernd Finke signed the agreements on behalf of their Governments. Hon. Minister of Finance, Mr. Alexander Chikwanda, thanked the Government of the Federal Republic of Germany for the good and trustful cooperation during the last 50 years and the substantive financial commitment for the welfare of the Zambian people. Ambassador Finke and Finance Minister Chikwanda signing the bilateral agreement Enlarge image Ambassador Finke and Finance Minister Chikwanda signing the bilateral agreement (© German Embassy) The funds are to be used in areas that directly contribute to poverty reduction within the context of Zambia’s Vision 2030 and the revised Sixth National Development Plan (R-SNDP) – among them water and sanitation, decentralization, energy, and wildlife protection. Ambassador Bernd Finke expressed his appreciation in Zambia’s achievements regarding the institutional set-up and the development of policies and strategies in different sectors. At the same time he called for strong efforts in implementing policy reforms and sectoral programmes for the benefit of the whole Nation. The sectors supported by German Development Cooperation are crucial in this regard as they do have a direct impact on people’s life in rural and remote villages which are severely affected by poverty. 

Major commitments were made to the governance sector (good financial governance, decentralization and civil society support) with a total of 37 million Euro (510 million Kwacha), to the water and sanitation sector (26 million Euro / 360 million Kwacha) and to the energy sector (51.5 million Euro / 710 million Kwacha). Furthermore, commitments were made in the fields of wildlife management and the fight against HIV/AIDS. In addition to the above mentioned commitments the German Government supports projects in the agricultural sector to improve the performance of small holder farmers as well as on food and nutrition security under the special initiative “One World – No Hunger”.

The signing of the two governmental agreements was followed by the signing of two financing agreements on the rehabilitation and extension of the Chishimba Falls Hdyro Power Station between the German KFW Development Bank and the Zambian Government as well as ZESCO respectively.

Bilateral agreement 2015

Ambassador Finke and Minister of Finance Chikwanda