Africa-Press – Zambia. France’s largest development financial institution, has proposed the creation of a special purpose vehicle to allow for financial support to Zambia on a private legal basis.
The French Development Agency (AFD) said it is, however, ready to finance the private sector in Zambia through PROPACO, a private sector development arm of the group.
This came to light when Minister of Green Economy and Environment Collins Nzovu held a meeting with a team from AFD in Paris. Zambia’s Ambassador to France Dr Christine Kaseba Sata had requested AFD to consider financial support to Zambia through PROPACO.
AFD is however optimistic that the debt situation will soon be resolved as there is will and commitment by the creditors to restructure Zambia’s debt so that financial support through the public sector can resume.
AFD Deputy Director Africa Development Beatrice Lederle is confident that the debt negotiations under the Paris club forum will be resolved so that the Agency can develop an ambitious economic plan for Zambia. Ms Lederle said AFD is totally aligned with the vision of president Hakainde Hichilema and saluted the achievements scored by the government so far.
“We want to congratulate you for the IMF programme which was recently approved by the board and sincerely wish the negotiations under the Paris club forum will go forward at a quick pace to develop an ambitious economic and environmental program ”, said Ms Lederle
And Mr Nzovu thanked France for the support and commitment towards economic transformation in Zambia to ensure debt sustainability. He said once the debt is restructured, there will be more foreign direct investment which will contribute to the growth of the economy.
Meanwhile Naig Cozannet from the forestry section said PROPACO will support the forestry sector in Zambia and a feasibility study has started in collaboration with Zambia Forestry and Forest Industries Corporation to have a full inventory of the plantation undertaken.
AFD Group has been present in Zambia since 2012 and has been active in supporting Zambia’s road infrastructure development, expansion of access to electricity and water as well as renewable energy development.
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