Zambia Gets €63m Germany Support for Governance

Germany has given Zambia a grant of €62.9 million Euros to support Zambia's financial governance.

The financial package will also support civil society participation, decentralisation, renewable energy, capacity building in water sector and HIV/AIDS prevention from 2019 to 2020.

Head of Germany delegation Alois Schneider, who also heads the Southern Africa division, said part of the funds would be applied as follows - €10 million would support Congolese refugees and host communities while about €20.1 million Euros would assist agricultural development and nutrition.

Mr Scheinder said his country emphasised a zero tolerance approach to corruption in all development programmes and expressed concern over recent cases of donor fund misappropriation.

Mr Schneider said at a Press briefing in Lusaka yesterday that it was agreed that the Zambian-Germany programmes would focus on strengthening accountability and transparency for better service delivery for the benefit of citizens.

He said new investment commitments in the water sector would be increased when the ongoing audit of a rural water programme was concluded.

Zambia and Germany successfully concluded government-to-government negotiations on the development of cooperation which took place on Tuesday and Wednesday this week in Lusaka.

Secretary to the Treasury Fredson Yamba, who headed the Zambian delegation said negotiations had focused on existing and future development cooperation programmes.

Mr Yamba said it took place in a candid, constructive and cordial atmosphere reflecting the relationship between the two countries, which were established after Zambia's independence.

"Because Zambia is at high risk of debt distress, it was agreed that Germany will provide this year's bilateral aid through grants and Government will put in place measures to reduce the fiscal deficit, maintain a sustainable debt position and safeguard the vulnerable," Mr Yamba said.

He said it was discussed that because funds were scarce, it was important to make wise and efficient use of available resources with an emphasis on value for money.

Mr Yamba said Government and Germany agreed that strong cooperation with the IMF was important.

He said in the unlikely event that the funds were misapplied the total sum would be reimbursed, adding that concerned regarding governance had led to a slight reduction of commitment.

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