The European Union (EU) has resumed its Budget Support Programme for Zambia. The first payment of EUR 20 million out of a EUR 60 million (ZMW 1.8 billion) package will be transferred to the National Treasury between 2024 and 2026.
This reflects the EU’s recognition of the Government of Zambia’s structural reforms in public finance management in 2021. These reforms aim to strengthen economic governance, transparency, and accountability. Despite significant challenges, including a global health emergency and severe drought, the government has remained committed to restoring macroeconomic stability and promoting resilient and inclusive growth.
The Budget Support Programme is based on a solid policy dialogue between the EU and the Government of Zambia and is disbursed based on compliance with mutually agreed-upon reforms. This budget support focuses on Education, Health, and Public Procurement, with funds being transferred directly to the National Treasury and becoming part of Zambia’s National Budget.
“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. These funds will help the government mitigate the impact of the crisis on the most vulnerable Zambians,” stated H.E. Karolina Stasiak, the EU Ambassador to Zambia.
Budget Support is a form of development assistance the European Union provides to Zambia. This assistance involves transferring development cooperation funds directly to the National Treasury. The European Union budget and European taxpayers fund the support. Once received, this grant becomes a part of Zambia’s national budget and is not required to be repaid to the European Union. The Budget Support Programme is designed to help Zambia improve essential public services such as education and healthcare and to contribute to the country’s overall development.
“Today’s signing ceremony is not just a symbolic act; it is a concrete manifestation of our commitment to building a stronger, more prosperous Zambia. We are confident that through our renewed partnership, we can create a future where every Zambian has access to quality education, affordable healthcare, and the benefits of a sound public financial management system”, stated Hon Situmbeko Musokotwane, Minister of Finance and National Planning.
The Budget Support Programme focuses on building resilience in Zambia, particularly in Education, Health, and Public Finance Management. The European Union supports Zambia’s efforts to improve access to education and healthcare, enhance public spending efficiency, and create a local pharmaceutical industry. This support aims to provide Zambians with better access to public services and education while also giving the government fiscal space to implement reforms. The EU’s support reflects its commitment to sustainable development and improving the lives of Zambian citizens. It will provide ZMW 10.6 billion for 2021-2024 in priority sectors such as Healthcare, Education, Agriculture, Environmental Conservation, Governance, and Infrastructure.
