EU resumes budgetary support to Zambia after a decade

The European Union (EU) has decided to resume its Budget Support Programme for Zambia for the first time in a decade, disbursing an initial tranche of €20 million (around $22 million).

The first payment is part of a larger €60 million package set to be transferred to Zambia’s National Treasury between 2024 and 2026.

“In this time of tight fiscal constraints, it is important to clarify that EU Budget Support is not a loan. It is a non-reimbursable financial support – a grant provided as part of development cooperation assistance. The European Union grants Budget Support only to countries that have made tangible progress in implementing the Government’s reform policies.” said Karolina Stasiak, EU Ambassador to Zambia, in a joint press conference.

“These funds will help the Government mitigate the impact of the crisis on the most vulnerable Zambians,”

The EU Budget Support Programme for Zambia is contingent on a strong policy dialogue between the EU and the Zambian government. Disbursement of funds is based on compliance with mutually agreed-upon reforms. The programme prioritises support for education, health, and public procurement. Funds are transferred directly to the Zambian National Treasury, becoming part of Zambia’s National Budget.

Zambia’s Finance Minister, Situmbeko Musokotwane emphasised the government’s focus on building a prosperous future with better access to education, healthcare, and financial stability.

Attribution: EEAS

Subediting: Y.Yasser