Green projects receive boost as sustainability bond launched

ZANACO has reportedly launched a US$100 million medium-term note programme and plans to issue an inaugural US$50 million sustainability bond.

The programme, it is said, will mobilise long-term capital for eligible green and social projects, including renewable energy, climate resilience, sustainable agriculture, financial inclusion, affordable housing, healthcare and education.

Green Economy and Environment Minister Dr Gilbert Siame, who launched the sustainability bond in Lusaka on Wednesday, described it as a milestone in Zambia’s efforts to build an inclusive, resilient and environmentally sustainable economy.

He said the launch demonstrated what could be achieved when government policy, private-sector innovation, financial markets and development partnerships converge around a common objective.

“Zambia’s policy direction is clear under the Eighth National Development Plan, which places environmental sustainability, economic diversification and social inclusion at the centre, reinforced by the Green Economy and Climate Change Act No. 18 of 2024 and the Zambia Green Finance Taxonomy,” Siame said.

He said sustainable finance should go beyond labelling and direct capital towards credible, transparent and measurable projects aligned with Zambia’s national development priorities.

Siame cited warnings from the World Bank’s 2026 Zambia Country Climate and Development Report that extreme droughts such as those experienced in 2023 and 2024 could become five times more frequent before 2050, disrupting agriculture, hydropower and household incomes, particularly among poor and rural households.

ZANACO Chief Executive Officer, Mukwandi Chibesakunda, said the bond was a significant step towards mobilising capital for projects delivering environmental and social benefits while supporting Zambia’s long-term economic development.

She said sustainability was embedded in how the bank created long-term value for customers, communities, shareholders and the country.

“The programme has been developed in line with internationally recognised sustainability bond principles through the ZANACO Sustainable Bond Framework, with clear governance, transparency and impact reporting mechanisms to assure investors that capital will be deployed responsibly and for measurable outcomes,” Chibesakunda said.

She added that the bond offered investors an opportunity to participate in Zambia’s sustainable development by supporting projects that strengthen communities, create jobs, support businesses and promote responsible environmental management.

Meanwhile, British International Investment (BII) announced a $15 million investment as an offtaker in the initial $50 million issuance.

British High Commissioner to Zambia, Rebecca Terzeon, said the investment was an example of Britain’s shift from donor to investor in its development partnership with Zambia.

“Through BII, the UK is investing alongside Zambian institutions in opportunities that can deliver both commercial returns and development impact, in support of Zambia’s Grow Zambia Agenda to drive growth, create jobs and strengthen resilience,” she said.

Terzeon said the investment formed part of a wider UK commitment under the UK-Zambia Green Growth Compact to support greener and more inclusive growth and unlock opportunities in energy, agriculture and critical minerals.

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