The Bank of Zambia has provided an update on its Stability and Resilience Facility (SRF), reporting full uptake of the ZMW 5 billion allocation against demand of ZMW 8.5 billion. Access closed on 31 March 2026, following an extension from 31 December 2025. The update also reiterates participating financial service providers’ obligation to pass interest rate concessions and associated benefits on to customers. Launched in December 2024 in response to the 2023/24 drought, the facility provided liquidity to eligible financial service providers for onward lending to viable agricultural businesses and businesses affected by prolonged load shedding, including micro, small and medium enterprises. Support included concessional pricing, a moratorium and a tenor of seven years. Funds were directed toward energy solutions and activities across agribusiness and forestry value chains, including irrigation and climate-smart agriculture. Under the facility’s terms, interest rates on advances to financial service providers fall when the Bank of Zambia Monetary Policy Rate is reduced, but do not rise when the policy rate increases. Providers must pass these concessions on to borrowers. The Bank will monitor the performance and use of disbursed funds for compliance with the facility’s terms.
Bank of Zambia reports full uptake of ZMW 5 billion drought support facility and reiterates interest rate concessions
The Bank of Zambia reported that its ZMW 5 billion Stability and Resilience Facility was fully taken up against demand of ZMW 8.5 billion, with access having closed on 31 March 2026. The facility supported agricultural businesses and firms affected by prolonged load shedding through concessional lending. Participating lenders must pass on interest rate reductions following policy rate cuts, while policy rate increases do not trigger corresponding increases under the facility.