The World Bank disclosed that the loan’s approval was in line with its efforts to help the southern African country recover from the devastations of the Covid-19 pandemic.
The Bank also cited economic relief from the war in Ukraine and the management of debt crises as other reasons why it lent the country the substantial sum.
In 2020, Zambia was reported as the first African country since the pandemic began to default on its debt.
One of the World Bank’s reports noted how much these factors are affecting Africa. According to the report, one in every five Africans goes to bed hungry and an estimated 140 million people in Africa face acute food insecurity.
The Bank, however, noted that some African countries including, Zambia, Angola, and Tanzania have vast potential to become an agricultural powerhouse if the sector is developed properly. As a result, they have created initiatives to aid such countries.
“The World Bank is ramping up its efforts and joining forces with partners across the food systems landscape to help these countries and others prepare and implement this critical transformation,” the report reads in part.
In August, the International Monetary Fund approved a $1.3bn loan to help Zambia - a major copper producer - restructure its debts.
The World Bank has been keen on combating the effects of climate change since the year began. Droughts and floods all across Africa have created massive food shortages, and the state of the continent’s food security has been abysmal, to say the least.
“Sub-Saharan Africa is feeling the brunt of what has been coined the perfect storm, a food, fuel, and fertilizer crisis exacerbated by the war in Ukraine, scarring effects from the COVID-19 pandemic, soaring inflation, rising debt, and extreme weather.” The bank noted.
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