Bank of Zambia Launches Stability and Resilience Facility to Bolster Financial Sector Amid Drought Impact
The Bank of Zambia has announced the launch of the Stability and Resilience Facility (SRF) to safeguard the nation’s financial stability. The facility, designed to strengthen the resilience of the financial sector, comes as the country grapples with the economic fallout from the severe 2023/24 drought.
The drought has adversely affected food production and hydroelectric power generation, resulting in widespread food insecurity and extended power outages. These challenges have heightened the risk of financial instability, prompting the central bank to intervene in line with its mandate to ensure price and financial system stability.
The SRF will provide a financial lifeline to businesses in the agriculture sector and those impacted by electricity shortages. Eligible Financial Service Providers (FSPs) will access funds under the facility for onward lending to viable enterprises.
The Bank of Zambia has allocated K5 billion for the SRF, which will be available through an access window effective Monday, December 30, 2024, for a period of 12 months.
Speaking on the launch, Silvia Siwale, Acting Assistant Director of Communications at the Bank of Zambia, emphasized the importance of this initiative. “The SRF aligns with our broader mission to protect financial stability while supporting key sectors of the economy in challenging times,” she stated.
The terms and conditions for accessing the SRF will be disseminated to all FSPs and made available on the Bank of Zambia’s official website.
