EIB and ZICB Sign €30M Deal to Boost Zambia’s Agri-SME Growth and Food Security

“Supporting the growth of agri-food SMEs and smallholder farmers through this financing facility will help Zambia safeguard the progress being achieved in the agricultural sector,” said ZICB CEO Ngenda Nyambe.

In a major boost to Zambia’s agricultural economy, the European Investment Bank (EIB) through its development arm, EIB Global, and the Zambia Industrial Commercial Bank Ltd (ZICB) have signed a landmark agreement to mobilise €30 million (ZMW 767 million) to support small and medium enterprises (SMEs) in the agricultural sector. The announcement was made during the EU-Zambia Lobito Corridor Business Forum, witnessed by Zambian President Hakainde Hichilema and EU Commissioner for International Partnerships, Josef Síkela.

The agreement is part of a broader EU-led initiative to enhance private sector participation in Zambia’s agriculture value chain, an industry seen as pivotal for rural employment, food security, and sustainable development.

“Supporting the growth of agri-food SMEs and smallholder farmers through this financing facility will help Zambia safeguard the progress being achieved in the agricultural sector,” said ZICB CEO Ngenda Nyambe.

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What the €30M Agreement Covers

The new funding package will be used for on-lending to eligible SMEs engaged across the agriculture value chain—from input suppliers and processors to storage and distribution services. This initiative forms part of the EU-funded Agri Value Chain Facility, which targets sectors such as agriculture and aquaculture by offering:

• Long-term financing tailored to SME needs

• A risk-sharing mechanism to make agri-SME lending more attractive to banks

• Technical assistance and capacity building for partner banks like ZICB

In addition to ZICB, two other Zambian banks are expected to sign similar agreements, signalling a coordinated national approach to strengthening agri-business financing.

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Targeting Inclusive, Gender-Responsive Agriculture Finance

A standout feature of the facility is its commitment to gender inclusion. At least 30% of the funds will be allocated to women-led or women-owned businesses in the agriculture sector. This is a critical intervention in a context where women make up the majority of the agricultural labour force, yet receive less than 10% of total agricultural finance globally.

According to the EIB, nearly half of female-managed SMEs in Zambia cite access to finance as their biggest barrier to growth.

“This initiative empowers farmers and agri-entrepreneurs to invest in their productivity, resilience, and modernisation. This will create new jobs and promote economic growth,” said EU Commissioner Josef Síkela.

To enhance impact, the EIB is also providing technical assistance to ZICB to help build out gender-responsive lending strategies, ensuring that female entrepreneurs are actively supported with tailored financial products and advisory services.

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Mitigating Climate Risk With EU Support

To further de-risk agricultural lending—an industry vulnerable to climate shocks such as droughts and floods—the agreement includes a €4 million (ZMW 103 million) risk-sharing facility. This is backed by a grant from the European Commission, enabling ZICB to extend credit to SMEs that might otherwise be deemed too risky.

“The agricultural sector is crucial for poverty reduction, food security, and trade. We are supporting Zambia to create an environment that is attractive to private sector investment,” said EIB Vice President Karl Nehammer.

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Complementary Investment in Infrastructure

Beyond this agreement with ZICB, the EIB is already contributing to Zambia’s agricultural transformation through a $110 million (ZMW 2.45 billion) credit line to the ETC Group (ETG)—a major commodities company operating across sub-Saharan Africa. This financing supports farm logistics and agricultural infrastructure, helping modernise supply chains and reduce post-harvest losses.

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Part of a Larger EU-Zambia Partnership

The investment into Zambia’s agricultural SMEs is just one arm of the broader EU-Zambia development collaboration, aligned with the EU’s Global Gateway strategy to foster sustainable development through public-private partnerships.

“With Global Gateway, we are helping projects access credit to drive economic development,” said Commissioner Síkela.

Through the Team Europe approach, this partnership combines financial, technical, and policy support to unlock the full potential of Zambia’s agricultural sector—one of the country’s most important economic pillars.

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EIB’s Longstanding Role in Zambia

The European Investment Bank has been active in Zambia since 1978, supporting projects in:

• Renewable energy

• Transport infrastructure

• Water and sanitation

• Small business development

To date, the EIB has invested over €1 billion (ZMW 25.7 billion) in Zambia’s public and private sectors.

This new agriculture-focused initiative adds momentum to the Government’s vision of transforming Zambia into a regional agricultural hub, while reinforcing the EIB’s role as a long-term partner in inclusive, sustainable growth.