Through this sustainability bond, Zanaco is expanding access to capital for Zambia’s sustainable development agenda. We are creating a pathway for investors to participate directly in financing projects that safeguard our environment while stimulating growth and resilience.
Zambia faces significant challenges driven by climate vulnerability. Our economy relies heavily on agriculture, which was hit last year by the driest growing season in over forty years. Drought affected 84 districts, with maize production falling by over 50%, exacerbating food insecurity and sending ripple effects through rural livelihoods. More than 75% of smallholder farmers remain vulnerable to climate shocks, and rural poverty stands at approximately 76% according to the United Nations Office for the Coordination of Humanitarian Affairs. The Zanaco Sustainability Bond aims to tackle such climate related challenges and better the environment.
The Zanaco Sustainability Bond aligns with the Sustainability Bond Guidelines 2021, Green Bond Principles 2021, and Social Bond Principles 2023, as administered by ICMA. The Sustainability Bond also aligns with the Bank of Zambia Green loan guidelines and the Securities and Exchange Commission Green Bond Guidelines.
In line with our sustainability mission, we have partnered with international organizations to provide financing options to our customers for green projects.
Access our Environmental Social Management System (ESMS) Framework here.
Zanaco Plc and BII have a partnership running until 2029 to finance climate loans and SME loans to qualifying borrowers.
Climate Eligible Projects include: Renewable Energy, Resource Efficiency and Recycling Projects, Green Building, Energy Conservation Services, Climate Smart Agriculture, Aquaculture, Green Forestry Development Projects such as Afforestation, Reforestation , Nature Protection, Ecological Restoration and Disaster Prevention Projects, Urban Transport, Waste Management, Wastewater management and treatment.
Zanaco Plc and EIB have a partnership running until 2029 to make available Agriculture Value Chain Loans and SME loans to qualifying borrowers.
Zanaco Plc is an accredited entity to the GCF to access climate-related funding for qualifying borrowers.
Access the application template here.
Zanaco Plc partnered with the World Bank by way of participation in the Electricity Supply Access Project (ESAP) under the component of off-grid electricity access expansion. To this effect, Zanaco Plc is on-lending funds to eligible off grid beneficiaries until 2030.
