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The latest International Monetary Fund (IMF) country report has emphasized the need for the Zambian government to attract a balanced mix of private and public funding to finance climate adaptation priorities and advance its green development agenda.
Released on Friday, the report noted that the intensification of climate risks demands urgent action to protect lives, build resilience, and sustain economic development. With the right policies, investments, and international support, the IMF said, Zambia could transform climate challenges into opportunities.
The Fund stressed the importance of strengthening resilience through climate-smart agriculture, diversified energy, sustainable forestry, and institutional reforms.
It urged international partners to step up with climate finance and technology transfer to help bridge resource gaps.
“By embedding adaptation into its national vision and planning systems, Zambia can build a more resilient and inclusive development path while contributing to global climate goals,” the IMF report said.
The report further called for better alignment between national development objectives and sectoral strategies, integration of climate risks into fiscal planning, and stronger tracking of climate-related spending.
It also highlighted the need to improve disaster risk management and early warning systems.
In agriculture, the IMF recommended promoting drought- and flood-resistant seeds, crop diversification, and expanded irrigation to withstand erratic rainfall.
In energy, it urged Zambia to accelerate diversification toward renewable generation and encourage alternative fuels for households to reduce reliance on charcoal and firewood.
Beyond climate priorities, the report warned that Zambia’s firm growth remained subdued, limiting job creation and economic transformation.
Read More: Climate change threatens Zambia’s food security, warns advocate
Persistent barriers such as limited access to finance, unreliable electricity, and competition from the informal sector were cited as major constraints.
“Removing key barriers to firm growth is essential not only to scale up existing businesses but also to support structural transformation by shifting labor into more productive, formal sector employment,” the IMF said.
Enterprise survey data showed stagnant median sales growth between 2007 and 2013, followed by widespread declines in 2013–19, with more firms reporting shrinking sales than growth.
The IMF cautioned that this deterioration in private sector performance had weakened its role in driving inclusive growth.
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