France Commits €23 Million in Direct Budget Support to Zambia, Deepening Economic Collaboration
In a significant boost to Zambia's economic development, the French government has committed €23 million in direct budget support.
This financial infusion aims to strengthen various sectors of the Zambian economy, highlighting the deepened collaboration between the two nations.
The confirmation took place at an official signing ceremony at State House, where the French Minister of State for Development, Francophonie, and International Partnerships, Chrysoula Zacharopoulou, met with President Hakainde Hichilema.
President Hichilema expressed gratitude for the bilateral and financial support, characterising the enhanced partnership as a testament to France's confidence in Zambia's new government. Declarations of Intent were signed in various areas, emphasising people-to-people relations and cultural ties.
Hichilema reiterated his commitment to fostering investment partnerships with French investors for economic growth and job creation.
The President appealed to France for assistance in resolving Zambia's debt impasse with official creditors, crucial for unlocking economic opportunities.
He highlighted the Lobito Corridor project's significance and sought French support. In June 2023, Zambia restructured $6.3 billion in debt with official creditors, followed by a $3 billion restructuring deal with private bondholders in October 2023.
Ms. Zacharopoulou disclosed a substantial €16 million budget support for 2023-2024, with additional allocations for the school feeding program, water and sanitation support, and sustainable forestry management.
Acting Minister of Finance Felix Mutati praised the ceremony's significance, commending President Hichilema's vision for economic management.
Minister of Foreign Affairs Stanley Kakubo highlighted France's commitment, outlined in a Memorandum of Understanding covering financial agreements and declarations of intent on water and sanitation, environmental management, critical metals and minerals support, and public finance management.