Highlights

• Zambia is preparing to raise $100 million through its first sustainability bond.
• The proceeds will be used to fund renewable energy, sustainable agriculture, and climate-resilient infrastructure under Zambia’s Green Growth Strategy.
• Africa holds less than 1% of the $2.2 trillion global green bond market, with the World Bank estimating $2.8 trillion needed by 2030 for climate goals.

Zambia’s largest bank, Zambia National Commercial Bank (ZANACO), has a sustainability bond issue in the offing worth $100 million, as confirmed by its Chief Executive Officer, Mukwandi Chibesakunda, during a press briefing in Lusaka.

The object is to finance projects that have environmental and social benefits, in line with global trends in sustainable finance.

The bond will be launched in two phases — the first will raise $50 million through a private placement within six months, followed by another $50 million through a public placement.

Read More: IOSCO Releases Five-Point Plan to Support Sustainable Bond Market Growth

At present, discussions are going on with private investors, and their names will be announced once final agreements are reached.

Funds from this issuance are used for renewable energy, sustainable agriculture, and climate-resilient infrastructure projects. These initiatives align with Zambia’s Green Growth Strategy (2024–2030) and the country’s Climate Change Act, as well as show a national ambition to transition towards low-carbon development.

Chibesakunda said this is a commitment to channel financial resources into areas that protect the environment and improve livelihoods. This step places Zambia among a growing group of emerging markets embracing sustainability-linked investments to meet climate and development goals.

According to the Africa Policy Research Institute, Africa’s share of the $2.2 trillion global green bond market is less than 1%, which indicates a wide funding gap for climate-related projects on the continent.

Also Read: Kenya Receives US$100m for Climate Projects and Women-Led SMEs

The World Bank estimates that Africa needs $2.8 trillion by 2030 to meet its Nationally Determined Contributions (NDCs) under the 2015 Paris Agreement to reduce greenhouse gas emissions and build resilience to climate change. However, the available budgets and donor pledges are insufficient to meet this demand, based on historical funding patterns.

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Source: Reuters