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Zambia Secures $ 63 Million From Worldbank and Private Sector to Improve Broadband and Digital Service

Zambia Secures $ 63 Million From Worldbank and Private Sector to Improve Broadband and Digital Service
Tuesday, 23 September 2025 12:30
  • Zambia secures $63m World Bank funding to extend 2,000 km of fiber and expand last-mile broadband.
  • Project will connect 500+ government institutions, schools and higher-education sites, with $8m in co-investment.
  • Program supports Vision 2030 goals, adds digital ID, e-gov, and skills training to boost fintech and agritech jobs.

Zambia secured $63 million in financing from the World Bank’s International Development Association as part of a $120 million package to expand broadband infrastructure and services. The deal, finalized after months of negotiations, combines a $100 million IDA grant with $20 million in unguaranteed commercial financing.

Authorities are framing the program as central to meeting national development goals under Zambia’s Science, Technology and Innovation Policy and Vision 2030. Technology and Science Minister Felix Mutati unveiled the financing during the launch of ABSA’s Mobi Tap mobile payment app in Lusaka on September 18.

About $20 million of the funds will go directly into broadband expansion, with the project designed to leverage an additional $10 million from network operators, wholesale infrastructure providers, mobile carriers, fiber companies, satellite operators and other investors. The money will finance up to 2,000 kilometers of new optic fiber, improving national backbone capacity.

Another $25 million is earmarked for last-mile connectivity to at least 500 government institutions, ranging from ministries and agencies to schools and higher-education institutions. The program expects to draw in an additional $8 million in co-investment, with priority given to sites in climate-vulnerable regions.

The country’s telecoms market is relatively well-structured, with four licensed mobile operators—Airtel, MTN, Zamtel and Zedmobile—and at least six internet service providers. The Zambia Information and Communications Technology Authority has built a track record of regulatory oversight, supporting rapid sector expansion over the past decade.

Despite double-digit growth, usage remains limited. Internet penetration is around 21 users per 100 inhabitants, below the Eastern and Southern Africa average of 28 percent. Analysts cite low incomes, high service costs and heavy excise duties on imported equipment as barriers to faster adoption.

Beyond infrastructure, the World Bank program will also fund digital identity systems, e-government platforms, and regional trade facilitation. Investments in digital skills are planned to prepare young Zambians for jobs in fintech, agritech and other emerging sectors, aligning broadband rollout with broader economic transformation goals.

Hikmatu Bilali

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