Latest news with #Musokotwane
Zawya
2 days ago
- Business
- Zawya
African Development Bank cuts sod for construction of permanent Country Office, cementing over five-decades of partnership with Zambia
Permanent office strengthens Bank's partnership with Zambia. African Development Bank has financed and facilitated major projects at country and continent level to support regional integration - Finance Minister Musokotwane The African Development Bank Group ( commenced construction of its permanent country office in Lusaka on Friday, marking a transformative milestone in the institution's 54-year partnership with Zambia. Since establishing its temporary country office in 2007 with just four staff members, the African Development Bank's presence in Zambia has grown to 20 permanent staff. The Bank's cumulative investment in Zambia now stands at $2.7 billion across multiple sectors, with a current active portfolio worth nearly $1 billion. The groundbreaking event was attended by Finance and National Planning Minister Dr. Situmbeko Musokotwane; African Development Bank's Vice President for Regional Development, Integration and Business Delivery, Nnenna Nwabufo; the Bank's Director of Real Estate Management, Procurement and General Services, Gail Meakin, as well as other senior government officials, members of the diplomatic community, other development partners, and private sector chief executive officers. The new office design incorporates cutting-edge sustainability features and wellness-focused design. It will house expanded operations while contributing to Zambia's economic growth through job creation and business stimulation during both construction and operation. The building is expected to be completed by 2027. It will be a smart building with conferencing and staff wellness facilities, with low energy consumption, a wastewater recycling system, and large green spaces. Dr. Musokotwane emphasized the significance of a permanent office. "This occasion is not just ceremonial – it's a vote of confidence in our country, our government, and our people. It recognizes Zambia's commitment to forge a better future for Africa." The Minister thanked the African Development Bank for providing much-needed financial support during Zambia's development journey and conveyed the President of Zambia's support for the Bank's decision to establish a permanent office building and continued development work in the country. 'The African Development Bank's support has produced many positive results in sectors such as transport, agriculture, water and sanitation, and energy. This shows the Bank's commitment to deliver on its vision for the African continent,' the Minister said. 'AfDB's support to Zambia has been instrumental in supporting the country's development goals espoused in the national development plans, which emphasize, among others, the need to build resilient infrastructure, promote inclusive and sustainable industrialization, and foster innovation in all the sectors of the economy.' Musokotwane listed some of the Bank's transformative work in Zambia, singling out the Kazungula Bridge Project ( for special commendation. 'We also wish to take this opportunity to commend the Bank for the support rendered to Africa. Through the Bank, major projects have been implemented both at country and continent level to support regional integration in Africa. Key among the projects implemented is the Kazungula bridge project, which is a major infrastructure initiative that involves constructing a road and rail bridge connecting Zambia and Botswana.' Other notable projects in Zambia include the Integrated Small Towns Water and Sanitation project, the Lusaka Sanitation Programme, Skills Development and Entrepreneurship Project, and the Multi-Purpose Small Dams Project. Musokotwane urged the Bank to consider expanded support for regional drought recovery efforts, emphasizing the need for building economic resilience across the region. The Southern Africa region is still recovering from the devastating droughts of 2023-2024. Nwabufo thanked the Government of Zambia for providing the prime land within Lusaka for the construction of the Bank's country office. "This new office demonstrates our continued commitment to strengthening our partnership with Zambia. We are here to stay – after all, the African Development Bank is your Bank," said Bank Vice President Nwabufo. She reaffirmed the Bank's commitment, announcing a $250 million commitment to the transformative Lobito Corridor Development Project ( The Lobito Corridor is a major economic route connecting the port of Lobito in Angola to the Katanga province in the Democratic Republic of Congo and the Copperbelt in Zambia. It encompasses the construction of the Zambia-Angola railway, the rehabilitation of the DRC segment of the railway with the establishment of a public-private partnership, and the upgrading and operationalisation of the Angolan railway. The African Development Bank's investments in Zambia continue to deliver impactful results: The 923-meter-long Kazungula Bridge ( project – supported by the African Development Bank Group with a US$ 81.6 million investment - has revolutionized cross-border trade, reducing transit times from 2.5 days to just half a day. The Chinsali-Nakonde road rehabilitation and Nacala Road Corridor projects have similarly enhanced regional connectivity. National water access has increased from 69% to 72% between 2015-2022, while sanitation coverage rose from 50% to 58%, providing 1.9 million additional people with improved water access. Through the Bank's agriculture sector, over 1.5 million households have seen their average annual incomes surge from US$320 in 2017 to US$1,300 in 2022. Agricultural productivity has soared, with maize production increasing from 2.9 million tonnes to 3.9 million tonnes and aquaculture output expanding from 20,000 tonnes to 76,000 Tonnes. The Bank's interventions in the sector have generated approximately 500,000 jobs. Following the Bank's intervention in the social sector, including the $30 million Skills Development and Entrepreneurship Project, SME productivity and competitiveness have improved, leading to increased job creation. Eight industrial yards have been constructed in Chipata, Kasama, Mongu, Ndola, Solwezi, Lusaka, Mansa, and Kitwe, with the capacity to accommodate 172 SMEs across various light manufacturing sub-sectors. The African Development Bank's 2024-2029 Country Strategy Paper for Zambia focuses on two key priorities: enhancing private sector development through infrastructure investments and promoting agricultural value chains to support youth and women's employment. This will guide the Banks' interventions in Zambia for the stated period. African Development Bank Country Manager for Zambia, Olaniyi Durowoju, noted that 'the office would serve as a modern and efficient workspace, and a beacon of innovation and a vibrant hub for partnerships, and collaboration with the Bank's stakeholders, enabling us better to serve our clients and the people of Zambia'. Distributed by APO Group on behalf of African Development Bank Group (AfDB). Additional Photos: Media contact: Emeka Anuforo, Communication and External Relations Department, media@ About the African Development Bank Group: The African Development Bank Group is Africa's premier development finance institution. It comprises three distinct entities: the African Development Bank (AfDB), the African Development Fund (ADF) and the Nigeria Trust Fund (NTF). On the ground in 41 African countries with an external office in Japan, the Bank contributes to the economic development and the social progress of its 54 regional member states. For more information:
Business Insider
3 days ago
- Business
- Business Insider
Zambia projects strongest economic growth in four years
Zambia's economy is on track to grow by at least 6% this year, marking its strongest expansion since 2021, according to Finance Minister Situmbeko Musokotwane. Zambia's economy is expected to grow by at least 6% in 2025, the strongest expansion since 2021, driven by increased copper production and improved rainfall. Zambia has emerged from a lengthy debt restructuring process, aiding growth prospects and bolstering returns for creditors. The Zambian kwacha has become Africa's second-best performing currency against the US dollar in 2025, aided by easing inflation and lower food prices. Zambia's economy is on track to grow by at least 6% this year, marking its strongest expansion since 2021, according to Finance Minister Situmbeko Musokotwane. He disclosed this on the sidelines of Bloomberg's annual Africa Business Media Innovators conference. According to Musokotwane, the rebound is driven by improved rainfall and increased copper production. Musokotwane had mentioned earlier this year that the country is banking on its mining industry for an economic recovery. Zambia, Africa's second-largest copper producer, experienced a significant increase in metal production last year, which accounts for more than 70% of the country's export earnings. Next year Zambia hopes to increase copper production to around 1 million tons, and eventually, to 3 million tons. "If all goes according to plan, 2025 should be the start of this revival and it will be getting stronger and stronger each year going forward," he said in January. This economic upswing comes as Zambia emerges from a protracted debt restructuring process. The stronger growth outlook boosts prospects for higher returns to creditors, including bondholders. Musokotwane is 'confident that we will get to that 6%,' he said. 'We just need to maintain this for 10, 15 years, positive growth every year. I think people will begin to see that it's not a certainty that you are born in poverty and you will end in poverty. Things can change.' Currency strength and easing inflation offer relief Notably, for the first time in a long time, Zambia's inflation rate is easing, offering the country some much-needed economic relief. At the same time, the kwacha has become Africa's second-best performing currency against the dollar in 2025, gaining 12% after a sharp rally last week. The easing of inflation is largely driven by falling prices of essential food items such as bread and cereals, following improved rainfall that helped mitigate the impact of the country's drought.
Business Insider
3 days ago
- Automotive
- Business Insider
Zambia courts carmakers for EV parts manufacturing near copper sites
Zambia has engaged in discussions with automakers to attract electric vehicle (EV) component manufacturers to set up plants close to its copper mining sites. Zambia aims to attract EV component manufacturers near its copper mines. Copper is crucial for EV engines, boosting Zambia's role in the supply chain. Finance Minister Musokotwane encourages investments during international discussions. Zambia has engaged in discussions with automakers to attract electric vehicle (EV) component manufacturers to set up plants close to its copper mining sites. The southern African country is Africa's second-largest copper producer, and copper is a vital material used in electric vehicle (EV) engines, according to Bloomberg. 'We have been talking, even last week when I was in Germany, telling these companies to please consider the manufacture of some of your electric-vehicle components in Zambia, ' Finance Minister Situmbeko Musokotwane said. 'Those components can then be shipped to your factories in South Africa which now exports to the rest of the world. That is a powerful way of value addition.' Rising investor confidence The country has already made progress in attracting EV companies. Last year, Build Your Dreams (BYD), World's largest electric manufacturer, expanded into Zambia through a partnership with Pilatus Electric Mobility Zambia Limited (PEM). The move signals growing investor interest in Zambia's role in the global EV supply chain. Zambia's government intends to maintain prudent fiscal policies even after its current International Monetary Fund (IMF) program ends in October, according to Finance Minister Situmbeko Musokotwane. He noted that the cabinet has not decided whether to pursue a new loan. Speaking at Bloomberg's annual Africa Business Media Innovators conference, Musokotwane also criticized the sudden withdrawal of some U.S. aid programs to Zambia and the broader African continent. However, he acknowledged that such support was always expected to decline gradually.
The Star
07-05-2025
- Business
- The Star
Zambia signs agreement with Indian bank on debt restructuring
LUSAKA, May 7 (Xinhua) -- Zambia on Wednesday signed a bilateral agreement with the Export-Import Bank of India (Exim Bank) for the restructuring of its debt. The agreement covers about 320 million U.S. dollars of central government debt and an additional 15 million dollars owed by Zesco Limited, the state-owned power utility. Minister of Finance and National Planning Situmbeko Musokotwane said the signing marks a milestone in Zambia's ongoing debt restructuring efforts under the G20 Common Framework, which aims to restore debt sustainability and create fiscal space for national development. He said that the debt has been restructured on favorable terms, as outlined in the memorandum of understanding under the G20 Common Framework. "This agreement not only reaffirms our strong bilateral ties but also demonstrates our shared commitment to ensuring a sustainable financial future for Zambia," Musokotwane said during the signing ceremony. He commended the Exim Bank for its continued support throughout the process, saying that the agreement reflects Zambia's success in engaging its creditors in a transparent and collaborative manner. The signing is a vote of confidence in Zambia's economic reforms, Musokotwane said, adding that the agreed terms are designed to support the country's economic recovery, ease debt servicing pressures, and allow the government to redirect resources to priority sectors.
