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 both at the macro- and sectoral levels. In particular, the EU support in this area focuses on:

  • At the 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 currently benefits from a six-year programme totaling €225 million over the period 2009-2014.
  • As a complement to GBS, the EU supported Zambia's reforms in public finance management with a specific programme of €13 million, which ran from 2006 to 2010, in coordination with several other Cooperating Partners. The EU in 2013 will implement a new PFM and Accountability project.
  • Agriculture: a critical sector for poverty reduction in Zambia, 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 support 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).

EU cooperation activities can also be financed by the separate Investment Facility 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.

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