By Justine Phiri
First National Bank Zambia Limited (FNB) has signed a $50 million term facility agreement with FMO, a Dutch entrepreneurial development bank, to reinforce its commitment to green finance, climate resilience, and inclusive economic growth in Zambia. The transaction will include a matching $350,000 Technical Assistance Facility, provided by WWF, to develop a Climate Adaptation Framework at FNB.
Speaking during the official signing ceremony attended by the Zambian Business Times-ZBT, FNB Zambia Chief Executive officer, Kapumpe Chola, noted that the Facility represents a strategic partnership aimed at accelerating investments into environmentally sustainable projects while ensuring that growth translates into prosperity for Zambian business, communities, and value chains.
Chola explained that 100% of the facility will be directed towards Eligible Green Projects, of which 40% will be for Climate Adaptation, including renewable energy, energy efficiency, sustainable agriculture, waste management, and water conservation.
She added that a dedicated branch will priorities climate adaptation projects, supporting businesses and communities to better withstand climate – related risks.
“FMO funds this tranche from the Dutch Fund for Climate and Development (DFCB), which is backed by the European Commission DFCD partners WWF provides matching TA under the facility and additionally FMO is mobilizing commercial investors in the uncommitted tranche,” said Chola.
Chola, further, noted that the $50 million facility will enable FNB Zambia to support medium-to long-term investments in sectors which are critical to Zambia’s sustainable economic transformation.
“Beyond environmental impacts the facility is designed to ensure that sustainable finance delivers tangible economic benefits and by channeling funding to sustainable agriculture, renewable energy, and green construction, FNB Zambia is strengthening local Emprise, supporting Job creation and enabling communities to participate meaningfully in the green economy,” said Chola.
Speaking at the same event, FMO Manager – Financial Institutions Africa, Angelica Ortiz de Haas, stated that the partnership with FNB Zambia reflects FMO’s shared commitment to supporting green investments.
“FMO is pleased to partner with FNB Zambia in advancing sustainable finance and Climate resilience in the country as it reflects FMO’s commitment to supporting green investments, strengthening local financial institutions, and ensuring that economic growth delivers long- term benefits for communities, businesses, and the environment”, she added.
Meanwhile, WWF Zambia Country Director, Nalucha Nganga-Ziba, disclosed that the collaboration will scale solutions for a greener and more resilient future across Africa.
“This collaboration with FNB, WWF, DFCD, and FMO demonstrates the power that collaboration across sectors has increased unlocking investments that protect Zambia’s climate and nature, while creating opportunities for sustainable businesses”, WWF Director noted.
The signing ceremony was graced by Green Economy and Environment Minister Mike Mposha, who was represented by the Permanent Secretary, Dr Douty Chibamba. Mposha reiterated that this partnership reflects the growing recognition that climate finance must reach business on the ground.
“The $50 million facility demonstrates how development finance can be channeled through local financial institutions to support green growth, by directing funding towards renewable energy, sustainable agriculture, water conservation, and climate- resilient infrastructure, thereby supporting Zambia’s national priorities while strengthening economic resilience.
Meanwhile, Bank of Zambia Governor Dr. Denny Kalyalya, in a speech read on his behalf by Brenda Mwanza congratulated FNB on concluding the facility an effort more particular on its continued partnership with the Zambia Financial Sector.
“The allocation of a significant portion of this facility towards renewal, renewable energy, sustainable agriculture, and climate adaptation align with the broader Global shift towards sustainable Finance and climate awareness risk crisis,” he said.
He further added that the central bank continues to encourage regulated institutions to strengthen risk governance Frameworks to integrate climate and environmental risks into existing risk management principles and apply internationally regulated, recognized standards proportionately and prudently.
By Justine Phiri
First National Bank Zambia Limited
