EIB Global, ZICB Mobilise €30m for Farmers and Agri-Businesses
EIB Global, the development and partnership arm of the European Investment Bank, has signed a landmark agreement with Zambia Industrial Commercial Bank (ZICB) to unlock €30 million (ZMW 767 million) in financing for the country’s agriculture sector.
The announcement was made at the EU–Zambia Lobito Corridor Business Forum, in the presence of President Hakainde Hichilema and EU Commissioner for International Partnerships, Josef Síkela.
Under the Agri Value Chain Facility, EIB Global will provide €15 million, which ZICB will match. The funding will be channelled to small and medium-sized enterprises operating in the agricultural value chain, improving access to finance and markets for agri-food SMEs that depend on thousands of smallholder farmers.
The agreement is one of three partnerships between EIB Global and Zambian banks aimed at strengthening financing across agriculture and aquaculture. Beyond providing long-term funding, the programme offers technical assistance and a €4 million risk-sharing facility backed by the European Commission, enabling ZICB to lend more confidently to SMEs often exposed to climate-related risks.
ZICB Chief Executive Officer, Ngenda Nyambe, said the partnership will help safeguard the sector’s recent progress. “Supporting the growth of agri-food SMEs and smallholder farmers will spur job creation and sustainable livelihoods. This facility enables ZICB to extend affordable financing that aligns with government efforts to position Zambia as a leading agricultural hub.”
EIB Vice President Karl Nehammer highlighted agriculture’s importance to Africa’s economy and food systems. “The agricultural sector is vital for growth, trade, and poverty reduction. Our goal is to make agricultural value chains more attractive for investment by ensuring that both farmers and agri-businesses can access finance.”
EU Commissioner Josef Síkela said the investment will enable farmers and agri-entrepreneurs to improve productivity and modernise operations.
“This project will help create jobs and strengthen food systems. It forms part of the Team Europe–Zambia partnership to build a more efficient agri-food sector.”
At least 30% of the financing will be directed to women-led businesses, addressing a long-standing gender gap in agricultural lending. Women form the majority of the agricultural workforce but face substantial barriers in accessing credit.
In addition to financing, EIB Global will support ZICB with capacity building to expand gender-responsive lending and broaden its reach in the agricultural sector.
EIB Global’s support to Zambia extends beyond this agreement. The Bank has also committed $110 million (ZMW 2.45 billion) to agricultural logistics and infrastructure in sub-Saharan Africa, including Zambia, through a facility with commodities firm ETC Group.
The European Investment Bank has worked with Zambia since 1978, investing more than €1 billion (ZMW 25.7 billion) in renewable energy, transport, water, SMEs and public infrastructure.
