Zambia has joined the select group of African nations taking early initiatives to explore innovative green financing methods for funding projects focused on adaptation and sustainable development. On 29 September 2023, Zambia’s Minister of Finance and National Planning unveiled the National Budget for 2024. In paragraph 142 of the presentation, the Minister emphasized the increasing risks related to climate change affecting the financial system. The Minister announced the government’s dedication to strengthening the legal and regulatory framework in 2024 to support green finance and incorporate environmentally friendly practices into the financial sector.
In response to the Minister’s announcement, on 6 October 2023, the Bank of Zambia, exercising its authority under the Banking and Financial Services Act of 2017, promulgated the Banking and Financial Services (Green Loans) Guidelines, which were officially published in the Government Gazette under Gazette Notice No. 1349 of 2023 (the “Guidelines”). These guidelines represent a significant step towards aligning the Zambian financial sector with global sustainability goals and fostering environmentally responsible lending practices. By doing so, Zambia aims to ensure not only the country’s economic resilience but also a more sustainable and climate-resilient future.
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