By 
The Bank of Zambia (BoZ) has closed its K5 billion Stability and Resilience Facility (SRF), which was introduced to support businesses affected by the 2023/24 drought and prolonged electricity shortages.
The facility attracted applications amounting to K8.5 billion and recorded full uptake of the allocated K5 billion, with the funds directed towards agriculture, energy solutions and other productive economic activities.
In a statement issued on Tuesday, BoZ Assistant Director for Communications, Besnat Mwanza, said the facility’s 12-month access window officially ended on March 31, 2026, following an extension from December 31, 2025.
Launched in December 2024, the SRF was established to safeguard financial system stability and strengthen the resilience of the financial sector following the impact of the 2023/24 drought on food production and hydroelectric power generation.
Read more: Security thread variations do not mean fake notes, says Bank of Zambia
The facility provided liquidity to eligible financial service providers (FSPs), which were expected to on-lend the funds to viable agricultural businesses and enterprises, including micro, small and medium-sized enterprises (MSMEs), affected by prolonged load shedding.
“The support came with concessional interest rates, a repayment moratorium and an extended loan period of up to seven years to give businesses adequate time to recover,” Mwanza said.
She said the funds supported energy-related investments and activities across the agribusiness and forestry value chains, including climate-smart agriculture, irrigation, waste management and water reticulation.
Mwanza said the central bank was satisfied that the facility had largely achieved its intended objectives.
She added that financial service providers were required to pass on the benefits of any reductions in the Monetary Policy Rate (MPR) to customers who accessed loans under the facility.
Under the SRF conditions, interest rates charged on advances to financial service providers are reduced whenever the central bank lowers the MPR, but are not increased when the policy rate rises.
The central bank said it would continue monitoring the use of the disbursed funds and loan performance to ensure compliance with the facility’s conditions.
WARNING! All rights reserved. This material, and other digital content on this website, may not be reproduced, published, broadcast, rewritten or redistributed in whole or in part without prior express permission from ZAMBIA MONITOR.
Comments