The European Investment Bank’s international arm, EIB Global, and Zambia Industrial Commercial Bank (ZICB) have signed an agreement to mobilise a combined €30 million to support private sector development in Zambia’s agricultural sector. The announcement was made during the EU-Zambia Lobito Corridor Business Forum in the presence of Zambian President Hakainde Hichilema and EU Commissioner for International Partnerships, Josef Síkela. Under the agreement, EIB Global will provide €15 million, matched by ZICB, to facilitate on-lending to eligible SMEs in the agriculture value chain, improving access to finance and markets for agri-food businesses that in turn support smallholder producers.
The partnership is part of the EU-funded Agri Value Chain Facility, which also includes agreements with two other Zambian banks. It aims to provide long-term funding, technical assistance, and a risk-sharing facility to support SMEs in agriculture and aquaculture value chains. The initiative will strengthen the resilience, productivity, and sustainability of Zambia’s agri-food sector, while creating jobs and supporting sustainable livelihoods. At least 30% of the funds are specifically allocated to women-led businesses, addressing the gender gap in agricultural finance.
ZICB CEO Ngenda Nyambe highlighted that the facility will enable affordable financing for SMEs and smallholder farmers, helping Zambia safeguard progress in agriculture and transform the country into a regional agricultural hub. EIB Vice President Karl Nehammer emphasized that the project seeks to grow the entire agricultural value chain, from smallholder farmers to larger enterprises, while supporting food security, trade, and job creation. Commissioner Síkela noted that the initiative aligns with the EU’s Global Gateway strategy and Team Europe partnership, aiming to empower farmers and agri-entrepreneurs to modernize operations and improve productivity.
The agreement also provides €4 million in a risk-sharing facility, supported by the European Commission, to reduce lending risks for SMEs affected by climate change. In addition to financing, EIB Global will support ZICB with capacity building to enhance gender-responsive lending strategies. The project complements other EIB Global initiatives in Zambia, including a $110 million credit line to ETC Group for farm logistics and infrastructure projects, and continues EIB’s long-standing engagement in Zambia, where over €1 billion has been invested in projects spanning renewable energy, transport, water, and SME support since 1978.
This collaboration contributes to the EU Programme “Support to the Sustainable Commercialisation of Zambia’s Smallholder Farmers,” which helps farmers transition from low-productivity, subsistence-based practices to diversified, market-oriented agriculture. By linking finance with technical assistance and market access, the initiative aims to strengthen Zambia’s agricultural sector, promote inclusive growth, and foster sustainable development.
