Today in Lusaka, Commissioner for International Partnerships, Jutta Urpilainen, announced the resumption of budget support for Zambia and launched three programmes worth €110 million under Global Gateway. The announcement was made alongside President Hakainde Hichilema and Minister of Finance and National Planning Situmbeko Musokotwane.
The three programmes focus on improving Zambia's education and health systems, increasing green energy and enhancing food security.
Commissioner Urpilainen and Minister Musokotwane also announced the intention of the EU and Zambia to launch negotiations for a Memorandum of Understanding on a strategic partnership on sustainable critical raw materials value chains.
Commissioner Urpilainen is accompanied in this visit by four members of the European Parliament's Committee on Development: Pierrette Herzberger-Fofana, György Hölvényi, Udo Bullmann and Carlos Zorrinho. It is the first joint Team Europe mission of this kind.
The three EU programmes worth €110 million focus on:
Health and Education: The EU's new €60 million budget support allocation to Zambia comes on top of the initial €299 million cooperation budget in Multiannual Indicative Programming (2021-2024). The new grant marks the resumption of budget support for Zambia, and it will be used to improve education and health sectors in particular. It will enhance access to inclusive and quality education on primary and secondary levels. It will help Zambia address barriers to public health and boost the pharmaceutical sector development.
Green Energy: the EU will make an additional investment of €30 million in the rehabilitation of the Kariba Dam, a key infrastructure providing clean energy to both Zambia and Zimbabwe. It represents one third of Zambia's and half of Zimbabwe's power generation capacity. Previously, the EU has made a €83.5 million financial commitment for the Kariba Dam rehabilitation project. Today's new allocation will help finance the cost of additional works that were identified during the first phase of the project. The project is expected to conclude next year.
Food Security: The EU is contributing an additional €20 million to support smallholder farmers in Zambia. This support is part of the EU's response to the food security crisis and economic shock aggravated by Russia's war of aggression against Ukraine. New funding complements the €12.4 million already mobilised to assists 60,000 small-scale farmers in increasing small farmers' productivity and support to women working in the sector.
Background
Global Gateway EU-Africa Investment Package
The Global Gateway stands for sustainable and trusted connections that work for people and the planet. It helps to tackle the most pressing global challenges, from fighting climate change, to improving health systems, and boosting competitiveness and security of global supply chains.
Supported by €150 billion in EU investment between 2021-2027, Global Gateway EU-Africa Investment Package aims to support Africa for a strong, inclusive, green and digital recovery and transformation. Together, the EU will support our African partner countries to achieve this by:
- Accelerating the green transition
- Accelerating the digital transition
- Accelerating sustainable growth and decent job creation
- Strengthening health systems
- Improving education and training
The package will be delivered through Team Europe initiatives, bringing together the EU, its Member States and European financial institutions to support transformational projects jointly identified in priority areas.
