Tunis, 30 June 2010 – The Board of Directors of the African Development Fund (ADF), the concessional window of the African Development Bank (AfDB) Group, approved on Wednesday, 30 June 2010 in Tunis a USD 48.89 million loan to assist the Republic of Zambia in implementing its Fifth National Development Plan aimed at economic growth and poverty reduction.
The Third Poverty Reduction Budget Support (PRBS III) will support ongoing government efforts to improve economic and financial governance through efficient public financial management, creation of a favourable business environment and strengthen the fight against corruption.
The operation is expected to yield several results. Through enhanced public financial management, Zambia will have a more credible budget management system that will allow more efficient use of resources and reduced opportunities for leakages and corruption. By enhancing trade competitiveness, the operation will also improve the private sector investment climate, notably by simplifying and reducing costs related to business licenses, and shortening the time for cross border trade. The operation will also consolidate and deepen far reaching reforms recently undertaken by government.
The government has taken important steps in recent months to overcome macroeconomic policy challenges and governance issues that emerged last year. Against this context, PRBS III will assist with implementation of the National Development Plan, and ultimately contribute to a more vibrant private sector-led growth.
“The improved financial governance and investment climate resulting from this program will help intensify Government’s robust efforts to enhance efficiency, prevent corruption and improve Zambia’s economic competitiveness,” the Director of Economic & Financial Governance at the AfDB, Gabriel Negatu, explained.:
The loan is part of a broader package from the Bank and other development partners to support the government’s plans to promote economic growth and poverty reduction. The expected objectives will be achieved through ongoing policy dialogues between the Bank and the government, fulfillment of agreed conditions and monitoring of the PRBS policy actions under a joint performance assessment framework.