The World Bank is set to immediately disburse approximately US$125 million on grant terms for Zambia, supporting critical growth-enhancing and competitiveness reforms.
This followed the World Bank’s Executive Board completion of a review of Zambia’s Second Macroeconomic Stability, Growth and Competitiveness Development Policy Financing under the Development Policy Operation 2 (DPO 2) Financing.
The review would result in the immediate disbursement of approximately US$125 million on grant terms, according to a statement issued on Friday by the Ministry of Finance and National Planning.
“The US$125 million grant from the World Bank is part of its multi-sectoral support to help Zambia to restore macroeconomic stability, make progress towards debt sustainability, and promote private-sector-led inclusive growth,” the statement indicated.
According to the statement, the facility would boost government’s efforts in resolving economic challenges.
It indicated that a more predictable investment climate would increase external financing, boost Zambia’s competitiveness and create more prospects for jobs and better livelihoods for citizens.
“To ensure that we remain on the path of economic reconstruction, we will continue with fiscal and structural reforms and through the DPO 2, enhance efforts aimed at restoring fiscal and debt sustainability, increasing farmer productivity and access to markets.
“This would ensure sustainable access to energy and uprating access to finance and private sector development,” the statement read.
The grant would contribute to addressing some of the developmental challenges by supporting critical growth-enhancing and competitiveness reforms, while seeking to reduce poverty on a more livable planet.
Expectedly, the DPO 2 aligns with Zambia’s Eighth National Development Plan (8NDP) and the World Bank’s policy commitments in governance and institutions, and jobs and economic transformation.
The DPO 2 would also continue to support Zambia at a crucial time to implement policy and institutional reforms, seek to restore macroeconomic stability, achieve debt sustainability, and promote private sector-led inclusive growth in line with Zambia’s development aspirations, the statement added.
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