EIB Global and Zambia Industrial Commercial Bank have signed a financing agreement that will mobilise a combined 30 million euros to support agricultural value chains and strengthen private sector growth across Zambia. The facility, announced during the EU-Zambia Lobito Corridor Business Forum, was unveiled in the presence of President Hakainde Hichilema and European Union Commissioner for International Partnerships Josef Síkela. It marks one of the most significant joint agricultural financing commitments extended to Zambia through the Agri Value Chain Facility.
Under the arrangement, EIB Global will provide 15 million euros, equivalent to 388 million kwacha, while ZICB will match the same amount. The funds will be channelled to eligible small and medium enterprises involved in the agri-food value chain. According to the agreement, the goal is to expand access to financing for businesses that depend on smallholder producers, thereby strengthening the commercial linkages that allow farmers to access markets, expand production and invest in improved practices.
The initiative is part of three ongoing partnerships between EIB Global and Zambian financial institutions supported by EU funding under the Agri Value Chain Facility. The broader programme focuses on long-term capital, technical assistance and a risk-sharing fund designed to increase lending to agriculture and aquaculture SMEs. These sectors employ large portions of Zambia’s rural population and play a central role in national food security and export growth.
During the signing ceremony, ZICB Chief Executive Officer Ngenda Nyambe said the partnership would help protect and accelerate progress in the country’s agriculture sector. He stated that the facility will allow ZICB to extend affordable, long-tenure financing to agri-food SMEs, enabling them to expand operations and sustain employment. He added that the expansion of agricultural lending aligns with government objectives to position Zambia as a regional agricultural hub by increasing productivity, supporting mechanisation and promoting value addition among local enterprises.
EIB Global Vice President Karl Nehammer highlighted the importance of agriculture to Africa’s economic landscape. He noted that agriculture contributes significantly to the continent’s gross domestic product and remains central to poverty reduction and food security. Nehammer said the agreement supports Zambia’s efforts to foster an environment that attracts private sector investment by ensuring that financial institutions have the tools and resources required to lend sustainably to agricultural enterprises. He added that the aim is to strengthen the entire value chain from small-scale producers to large agribusinesses.
EU Commissioner Síkela said the support falls within the Global Gateway framework, which seeks to improve access to credit for developing economies. He explained that the project will help farmers and agri-entrepreneurs invest in productivity, resilience and modernisation. He also emphasised that such investments are expected to create employment opportunities and deepen the efficiency of Zambia’s agri-food systems under a wider Team Europe approach.
According to the agreement, at least 30 percent of the funds will be directed to women-owned or women-led enterprises. This provision responds to long-standing barriers that restrict women’s access to agricultural finance. Currently, female farmers in developing countries receive less than 10 percent of agricultural financing. In Zambia, nearly half of women-owned SMEs cite limited access to capital as one of their primary obstacles. Women also constitute a significant portion of the agricultural labour force, making gender-targeted support essential for inclusive sectoral growth.
Beyond capital provision, EIB Global will deliver technical assistance to ZICB to strengthen its gender-responsive lending strategies. This support is expected to improve the bank’s ability to design products that address challenges facing women entrepreneurs. The partnership also includes a 4 million euro risk-sharing facility funded by the European Commission. This component will help mitigate lending risks associated with agricultural financing, particularly for SMEs operating in environments affected by climate change and market volatility.
EIB Global’s broader support to Zambia includes a separate commitment of 110 million dollars for agricultural development projects through a credit line to the commodities firm ETC Group. The funding supports logistics and infrastructure initiatives across sub-Saharan Africa, including investments in Zambia’s farming systems. The European Investment Bank has been active in Zambia since 1978 and has invested more than 1 billion euros in various sectors such as renewable energy, transport, water systems and SME development.
In the background information released with the agreement, EIB Global described itself as a long-term financing institution owned by European Union Member States and tasked with supporting projects that align with EU policy priorities. The bank noted that its development arm aims to support 100 billion euros in global investment by 2027 under the Global Gateway initiative, working closely with financial institutions and governments in developing countries.
ZICB, established in 2017 and operational since 2018, is fully Zambian-owned. Its main shareholders include NAPSA Investment Holdings, the Industrial Development Corporation and the Workers’ Compensation Fund Control Board. The bank’s mandate is to promote industrialisation and commercial growth among micro, small and medium enterprises, as well as local corporate entities. Through this new facility, ZICB is expected to deepen its footprint in agriculture by supporting farmers, processors and value chain enterprises.
The project forms part of the European Union’s programme supporting the commercialisation of Zambia’s smallholder farmers. The facility is intended to enable farmers to move from low-output subsistence farming to diversified, market-oriented agricultural systems. It is also expected to help reduce financing gaps, improve liquidity within the value chain and increase resilience against climate-related challenges.
The agreement concludes with contact details for EIB Global and ZICB communication teams, signalling the start of implementation activities that will involve technical missions, SME engagement and risk-sharing framework rollout.
Source: Press Release, EIB Global Partners with ZICB, 12 November 2025
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