In a major boost to Zambia’s agricultural sector, the European Investment Bank’s (EIB) development arm, EIB Global, has signed a landmark agreement with the Zambia Industrial Commercial Bank (ZICB) to mobilise €30 million (approximately K767 million) to support agricultural small and medium enterprises (SMEs) and smallholder farmers across the country.
The announcement was made during the ongoing EU–Zambia Lobito Corridor Business Forum in the presence of President Hakainde Hichilema and EU Commissioner for International Partnerships, Josef Síkela.
Under the agreement, EIB Global will provide €15 million (about K388 million) which ZICB will match under the Agri Value Chain Facility.
The initiative aims to strengthen the entire agricultural value chain from smallholder producers to agri-businesses by providing access to affordable finance, markets, and technical assistance.
ZICB Chief Executive Officer Ngenda Nyambe said this partnership marks a new chapter in Zambia’s journey toward becoming a regional agricultural hub.
Mr. Nyambe said supporting agri-food SMEs and smallholder farmers through this facility will safeguard the progress we are making in the agricultural sector.
“It will create jobs and support sustainable livelihoods in line with the government’s long-term vision for agriculture, he said”.
The facility is one of three agreements signed with Zambian banks under the EU-funded programme, which includes long-term funding, risk-sharing arrangements, and technical support to enhance SME growth in agriculture and aquaculture.
EIB Vice President Karl Nehammer highlighted the importance of the initiative, noting that agriculture remains a cornerstone of Africa’s economy.
“Agriculture contributes significantly to Africa’s GDP and is key to poverty reduction and food security, we are supporting Zambia to create an environment that attracts private sector investment, ensuring finance is available to grow the agriculture value chain from smallholders to large enterprises,” he said.
During the same event, EU Commissioner Síkela said the partnership falls under the Global Gateway initiative, aimed at enhancing sustainable investment in developing countries.
“Access to credit is essential to drive economic growth, this project will empower farmers and agri-entrepreneurs to invest in productivity, resilience and modernisation, creating new jobs and opportunities for Zambians,” he said.
The new partnership between EIB Global and ZICB reaffirms the EU’s continued commitment to Zambia’s economic transformation and its vision of achieving sustainable, inclusive agricultural growth.
