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Water Development and Sanitation Minister, Elisha Matambo, has urged financial institutions to increase investment in climate-resilient water infrastructure, saying private capital is essential to transforming the sector and supporting agricultural expansion.
Matambo proposed a structured, results-oriented partnership to mobilise private financing for water infrastructure and irrigation systems, as Zambia seeks to strengthen water security and reduce reliance on rain-fed agriculture.
He was speaking in Lusaka on Monday during a courtesy call by United Bank for Africa (UBA) Zambia Managing Director at his office.
Matambo said water security was fundamental to the Government’s Grow Zambia Agenda, which targets increased production of strategic crops such as maize and soya beans.
He said sustainable agricultural transformation could no longer depend exclusively on unpredictable rainfall, calling on banks to develop financing models that also benefit small-scale farmers, cooperatives and emerging agricultural enterprises.
“Funding opportunities should not be restricted to large commercial institutions. Banks must design financing models that accommodate smallholder farmers, cooperatives, and emerging agricultural enterprises,” he said.
Matambo acknowledged that government resources alone were insufficient to meet the substantial financing requirements of the Zambia Water Investment Programme, and called for partnerships with financial institutions such as UBA Zambia.
He invited the bank to help develop an investment structure for the proposed Water Development Trust Fund, which he said would preserve its principal capital while using interest earnings to provide long-term funding for water conservation and catchment protection.
“We invite UBA Zambia to technically engage in designing an investment structure for the proposed Water Development Trust Fund. The endowment fund will preserve principal capital while utilizing interest returns to establish long-term, predictable funding for water conservation and catchment protection,” he said.
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He also urged financial institutions to develop competitive lending facilities and blended-finance instruments to support renewable-energy-powered water systems, solar pumping, wastewater treatment and water recycling infrastructure.
Matambo said such investments would help the country respond to increasing climate variability while expanding access to reliable water supplies.
“There is need to expand access to capital for local small and medium enterprises operating within the water value chain. This includes borehole drilling, irrigation equipment supply, and water treatment technologies,” he said.
He assured financial institutions that properly prepared projects, transparent risk management and sound financing structures could make water infrastructure a bankable and commercially viable investment area.
“Beyond commercial financing, we encourage UBA Zambia to leverage its corporate social responsibility initiatives to support community-level water and sanitation projects in underserved rural areas,” he said.
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