• Funding targets green and climate adaptation projects in Zambia
• 60% allocated to green investments, 40% to climate adaptation
• Package includes $350,000 in technical assistance via WWF Zambia

The Dutch development bank FMO announced yesterday, January 4, it has approved $50 million in climate financing for FNB Zambia to support investments linked to climate action in the southern African country.

FMO said the facility is intended to enable FNB Zambia to expand its long-term financing offer for green projects and climate adaptation initiatives. Sixty percent of the amount will be allocated to eligible green projects, while the remaining 40% will be directed toward climate adaptation investments, with a focus on SMEs and clients in the agricultural sector.

FMO said the initiative responds to growing demand for solar solutions and climate-resilient investments, in a context marked by recurring electricity shortages and increasingly challenging climate conditions for agriculture in Zambia.

In addition to the credit facility, FMO announced the mobilization of $350,000 in technical assistance. The support will be provided by WWF Zambia, a partner of the Dutch Fund for Climate and Development. According to FMO, the assistance aims to support FNB Zambia in setting up a framework to assess climate mitigation and adaptation projects, strengthening the bank’s capacity to identify, analyze, and finance projects aligned with climate objectives.

Zambia’s vulnerability to climate change was highlighted during the 2023–2024 drought, which severely affected the country’s power system. In an analysis published in September 2024, Action Against Hunger said the drought, the worst Zambia has experienced in 40 years, had pushed 6.6 million people into urgent humanitarian need, with 80% of provinces affected by severe rainfall deficits.

Abdoullah Diop