By John Chola
In a decisive move to counter the economic devastation wrought by the 2023/24 drought, the Bank of Zambia (BoZ) has launched the Stability and Resilience Facility (SRF).
The initiative, capitalized with an initial K5 billion, is aimed at stabilizing the financial sector and revitalising key industries affected by the drought.
According to a statement from the BoZ Financial Stability Department, released by Acting Assistant Director Communications, Silvia Siwale, the drought has severely disrupted Zambia’s economy, impacting food production and hydroelectric power generation.
This has resulted in widespread food insecurity and extended power outages, compounding economic pressures.
The SRF is designed to provide financial support to eligible Financial Service Providers (FSPs), who will then extend loans to viable businesses.
Priority will be given to enterprises in the agriculture sector and those grappling with the effects of electricity shortages.
This aligns with the Bank’s overarching mission to ensure price and financial system stability.
Launch Details and Impact
The SRF Access Window, set to open on December 30, 2024, will run for 12 months.
It marks a proactive approach to mitigate the economic fallout from the drought, offering critical lifelines to struggling businesses.
The facility’s terms and conditions will soon be shared with FSPs and published on the BoZ website.
“This bold intervention reflects our unwavering commitment to supporting Zambia’s economy during challenging times,” said Siwale.
She emphasized that the funding will ensure operational continuity for businesses, protecting jobs and promoting economic recovery.
Call to Action
The BoZ has encouraged interested parties to reach out to its Prudential Supervision or Financial Stability Departments for further details.
As Zambia faces one of its most challenging economic periods in recent history, the SRF symbolizes a crucial step toward resilience, underscoring the Bank’s role as a stabilizing force in the country’s finance.
Bank of Zambia Introduces Stability and Resilience Facility to Bolster Financial Sector Amid Drought Challenges
