FNB Zambia partners Dutch bank to raise $50 million green finance facility

First National Bank (FNB) Zambia has signed a US$50 million financing facility with the Dutch entrepreneurial development bank, FMO, in a move seen to position Zambia’s financial sector at the forefront of climate action, sustainable investment, and inclusive economic growth.

The agreement, signed in Lusaka on Tuesday, marks a significant shift toward financing projects that protect the environment while strengthening long-term economic resilience, according to a statement issued in Lusaka on Tuesday.

The statement indicated that the facility would be supported by technical assistance from the World Wide Fund for Nature (WWF), the facility will channel capital into renewable energy, climate-smart agriculture, and other green initiatives central to Zambia’s development agenda.

It said that this includes a US$350,000 technical assistance grant from WWF to support the development of a Climate Adaptation Appraisal Framework at the bank, aimed at improving climate-related risk screening and green-lending practices.

FNB Zambia Chief Executive Officer, Kapumpe Chola, described the financing agreement as a major milestone in aligning financial growth with environmental responsibility and inclusive development.

“Green finance is no longer a future aspiration; it is a present-day necessity. Through this partnership, we are enabling Zambian businesses, particularly in climate-sensitive sectors, to grow sustainably while building resilience against climate risks,” Chola said.

WWF Zambia Country Director, Nalucha Nganga-Ziba, said the collaboration demonstrated the power of cross-sector partnerships in mobilizing investments that protect Zambia’s climate and natural resources while supporting sustainable enterprise development.

FMO Manager for Financial Institutions Africa, Angelica Ortiz de Haas, said the facility reflects a shared commitment to advancing sustainable finance, strengthening local financial institutions, and ensuring long-term benefits for communities and the environment.

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Green Economy and Environment Minister, Mike Mposha, in a speech delivered on his behalf by Permanent Secretary, Douty Chibamba, said the facility showed how development finance can be channelled through local banks to support green growth aligned with Zambia’s national priorities.

Bank of Zambia Governor Denny Kalyalya, in remarks read on his behalf by Assistant Director of Banking Supervision, Brenda Mwanza, said the transaction demonstrates the importance of development finance partnerships in strengthening the financial sector and mobilizing long-term capital for productive investment.

He noted that long-term financing remains scarce in the domestic market, making such facilities vital.

“So, such facilities are particularly important to provide the funding that is required and will complement local deposits as well as enable banks to support investments with long-term gestation periods,” Kalyalya stated.

Deputy Ambassador of the Kingdom of the Netherlands to Zambia, Malawi, and Zimbabwe, Ilyaas Sherally, said the partnership was designed to help Zambia address the twin shocks of economic default and prolonged drought by channelling recovery through sustainable and climate-resilient solutions.

He emphasized that the initiative underscored a shared commitment to ensuring that financial support was matched with strong environmental and social safeguards.

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