PRESIDENT Hakainde Hichilema says the European Union’s resumption of budget support to Zambia is due to the confidence it has in the new dawn government.
On Tuesday, European Union Ambassador to Zambia Karolina Stasiak said the EU had resumed a budget support programme to Zambia 10 years since its withdrawal.
“A decade ago, the EU had to withdraw its budget support from Zambia. However, in 2021 with the appointment of the new Cabinet, we have witnessed a renewed commitment to ambitious reforms towards strengthening governance and guiding Zambia back onto economic recovery and social development. I’m very excited to be here today to celebrate the resumption of our budget support to Zambia with a first disbursement which we have just signed of 20 million Euros which translates into K600 million. This achievement would have not been possible without the support of the EU member states and I have the pleasure to have all of them with me here today. This is a result of a joint assessment and a joint will to entrust budget support to Zambia. By design, budget support requires ownership by the partner country, it enhances local capacity. With such greater ownership comes the potential for greater impact of these funds for the lives of the citizens of Zambia,” said Stasiak.
In an interview, President Hichilema said government had restored credibility not just in the budget process but also in the whole economic restructuring programme.
“It’s confidence that the new government, the UPND new dawn government has been able to restore credibility not just in the budget process but in the whole economic restructure programme. The reason the EU pulled out of the budget support is very clear, and if you listen to their statement when they signed, they were very clear that they are now comfortable that the new government has put in place prudence measures, economic restructural measures that will see the economy come out of jaw drops. Also, it comes down to accountability, very important, that’s the answer to why they resumed the budget support programme to Zambia,” said President Hichilema.
