First National Bank (FNB) and Dutch FMO Entrepreneurial Development Bank, have signed a 50 million United States Dollars financing facility that will play a critical role in supporting climate action and green growth while driving economic development.
The media reports that speaking during the ceremony, Minister of Green Economy and Environment, Mike Mposha, who was represented by the Ministry’s Permanent Secretary, Douty Chibamba, says green finance contributes to environmental protection and creates jobs that ensure inclusive growth.
“This facility aligns well with Zambia’s green growth strategy, our national adaptation plan as well as our pledges under the nationally determined contributions. it also reflects the growing recognition that climate finance must reach businesses on the ground,” he said.
Mr Mposha expressed the government’s commitment to creating an enabling environment for sustainable finance through continued collaboration with development partners and the private sector.
FMO Entrepreneurial Development Bank Manager, Angelica Haas, disclosed that the funds support investments in climate smart agricultural solutions, efficient water, off-grid solar systems and sustainable forestry products and projects.
Ms added that it will leverage the World Wildlife Fund (WWF) to provide technical assistance to FNB in order to strengthen its capabilities for appraising and identifying climate mitigation and adaptation projects and investments.
Deputy Ambassador of the Netherlands, Ilyaas Sherally, said the empowerment initiative is a demonstration of a strong and growing relationship between the Netherlands and Zambia.
He added that the Dutch grappled with the effects of climate change and that it has gained significant experience that has made it become a global leader in climate adaptation and resilience whose expertise is ready to be shared worldwide.
Meanwhile, FNB Chief Executive Officer, Kapumpe Chola said the financing facility, that will be dispersed through FNB Zambia standard frameworks to qualifying applicants, reinforces the role of financial institutions as enablers of sustainable development.
The climate smart initiative has been made possible by FMO Entrepreneurial Development Bank and Dutch Fund for Climate and Development, with cooperating partners that include, FNB, WWF and the Bank of Zambia.
