By Mubanga Mubanga
Zambia and the World Bank yesterday signed a financing agreement that will see $700 million going towards the NEAT programme aimed at increasing the financial and operation resilience of the electricity sector in the country.
During the signing ceremony in Lusaka at Inter Continental Hotel in Lusaka yesterday, between Finance minister Dr Situmbeko Musokotwane and World Bank country director for Zambia, Malawi, Zimbabwe and Tanzania Nathan Belete, the first phase of the program will be implemented from 2024 to 2026, providing a $100 million grant to improve Zambia Electricity Supply Corporation (ZESCO’s) financial performance and operational reliability and to support the Rural Electrification Authority (REA) with strengthening the implementation of the rural electrification fund.
The fund will also enhance Zambia’s procurement processes of non-hydropower renewable energy projects.
The NEAT program demonstrated the World Bank’s commitment to supporting Zambia’s energy policies in alignment with the 8th National Development Plan (8NDP), Vision 2030, and National Energy Policy (NEP).
“By enabling access to reliable and sustainable energy sources, the program supports the foundation of a private sector driven and inclusive economic growth and therefore fully aligns with the World Bank’s goals of ending extreme poverty and boosting shared prosperity on a habitable planet,” the agreement indicates. “Additionally, $150 million financing agreement has been signed for the Girls’ Education and Women’s Empowerment and Livelihoods for Human Capital Project (GEWEL 2). Its development objectives are to deepen human capital growth and promote the productivity of the poorest and most vulnerable Zambians for longer-term development outcomes.”
The agreement will also cover the Social Cash Transfer (SCT) program of about 39 percent of the population and 82 percent of the extremely poor, representing one of the most pro-poor safety net coverages in Africa.
“Going forward, SCT will be leveraged for a large-scale drought response in the 84 affected districts. Financial support to vulnerable adolescent girls through the Keeping Girls in School intervention has enrolled over 155,000 girls in secondary schools,” the Ministry of Information stated. “Livelihoods support through Supporting Women’s Livelihoods intervention has increased overall consumption by 38%, household income by 62%, business profits by 80%, and savings by 234%.”
The ministry also stated that systems had been built forming strengthened beneficiary management, effective and accountable delivery of support, leading to gradual scale up of the digital payment modalities and GBV-sensitive grievance redress.
“GEWEL 2 will build on these successes as well as introduce a new focus on improving the nutrition outcomes among children and women in selected districts,” the Ministry of Information stated when giving highlights of the agreement.
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