Economics and rural development

In line with article 23 of the Cotonou Agreement, EU economic cooperation aims at supporting "policy and institutional reforms and the investments necessary for equitable access to economic activities and productive resources".

In order to contribute to the objective of economic development, the EU in Zambia provides support at macroeconomic level and for the agriculture sector.

  • At macro-economic level, the EU provides General Budget Support (GBS) to Zambia to underwrite macroeconomic stability, the national development plan, and reforms in public finance management. Zambia benefits from a six-year programme totalling €225 million over the period 2009-2014. This programme is funded under the 10th EDF.
  • As a complement to GBS, the EU supports Zambia's reforms in public finance management (PFM).  A €13 million PFM and Accountability project was adopted in 2013, focusing on the enhancement of economic governance, increased revenue collection and the improvement of monitoring to enhance overall effectiveness of budget execution. The programme supports the Ministry of Finance, the Ministry of Mines, Energy and Water Development, as well as with the Parliament. This follows a PFM programme of €13 million, which ran from 2006 to 2010, in coordination with several other Cooperating Partners.
  • Agriculture is a critical sector for poverty reduction in Zambia, and support is provided through a number of avenues: direct support to the Ministry of Agriculture and Livestock's Performance Enhancement Programme, as well as direct grants for Non-State Actors active in the field. Currently, the EU is also working through FAO to enhance Government efforts to increase production and spread sustainable methods of cultivation, such as Conservation Agriculture (€17 million for 2009-2012, and 11.1 million for 2013-2017). Under the 11th EDF, an amount of 110 million has been set aside for future agriculture programmes.
  • EU cooperation activities can also be financed by the separate Investment Facility (IF) managed by the European Investment Bank. The IF provides various forms of risk sharing financing instruments for investment projects in most sectors of the economy, including projects in the commercially run public sector and in the infrastructure sector which are key to the development of the private sector, as well as the financial sector.
Back to Development Cooperation