The World Bank has approved a $100 million financing package aimed at enhancing Zambia’s ability to manage natural disasters while strengthening its economic and climate resilience.
The package combines a Climate and Economic Resilience Development Policy Financing (DPF) grant with a Catastrophe Drawdown Option (Cat-DDO), reflecting a dual approach to immediate and long-term challenges.
- Immediate Economic Relief and Climate Adaptation: The initiative allocates $25 million to tackle Zambia’s current economic challenges and support climate adaptation efforts.
- Disaster Response Fund: An additional $75 million is reserved as contingent funding for rapid response to national disasters, such as severe droughts.
This strategy is designed to not only address immediate disaster impacts but also build long-term resilience against future risks.
Achim Fock, the World Bank Country Manager for Zambia, highlighted that the DPF funding would provide a foundation for sustainable and inclusive economic growth, a critical component of a resilient economy.
Albert Pijuan, Senior Country Economist at the World Bank, emphasized the financing package’s focus on disaster risk management, enhanced social protection systems, and advancing climate adaptation, particularly in the water sector.
This initiative aligns with the World Bank’s broader goals of supporting Zambia’s recovery from its debt crisis and fostering sustainable development. It also underscores the importance of addressing climate risks as Zambia works toward long-term economic stability and resilience.
