December 5, 2011
Germany has given Zambia K592 billion (Euro 87.1 million) as continued financial support to programmes aimed at improving water supply and sanitation, poverty reduction and decentralization of the local government system.
Out of the total amount, K219.6 billion will go towards improving water supply and sanitation while K238 billion will go towards poverty reduction budget support and K121 billion towards decentralization of the local government system.
“These sectors are critical areas of our development co-operation programme since they directly impact on the people of Zambia in remotest areas of this country,” said Ingolf Dietrich, head of the Southern Africa Division of the federal ministry of Economic Co-operation and development (BMZ).
Dr Dietrich, who was speaking during the signing ceremony in Lusaka last week said the German government decided to give Zambia K592 billion because of the confidence it has in its development programmes.
He said the funds will be used over a period of three years in areas that will directly contribute effectively to poverty reduction as outlined in Zambia’s Sixth National Development Plan (SNDP).
“It is acknowledged that Zambia has enormous economic potential and impressive macro-economic growth rates.
However, poverty levels in Zambia still remain high. It is for this reason that we have decided to give Zambia euro 87.1 million to help reduce poverty,” Dr Dietrich said.
Earlier, acting Secretary to the Treasury Danies Chisenda said the funds given to Zambia will help the government to improve people’s living standards through provision of clean water supply and sanitation and poverty reduction.
Chisenda said the funding was a result of recent bilateral negotiations in Lusaka.
The negotiations focused on the on-going and future development co-operation between Zambia and Germany.