By Cecilia Chiluba/Zambia/Lusaka
First National Bank (FNB) Zambia Limited has signed a US$50 million Term Facility Agreement with FMO, the Dutch entrepreneurial development bank, aimed at advancing green finance and climate resilience in Zambia.
Under the facility, 100 percent of the funding will be directed toward eligible green projects, with 40 percent specifically allocated to climate adaptation initiatives. The financing will support key sectors including renewable energy, sustainable agriculture, water conservation and environmentally responsible infrastructure.
The agreement also includes a matching US$350,000 Technical Assistance Facility provided by the World Wide Fund for Nature (WWF). The support will be used to develop a Climate Adaptation Appraisal Framework at FNB, reinforcing the bank’s commitment to green finance, climate resilience and inclusive economic growth.
The facility represents a strategic partnership designed to accelerate investment in environmentally sustainable projects while ensuring that economic growth translates into shared prosperity for Zambian businesses, communities and value chains.
FMO is funding this tranche through the Dutch Fund for Climate and Development (DFCD), which is backed by the European Commission, while its partner WWF is providing the matching technical assistance. In addition, FMO is mobilizing commercial investors for the uncommitted tranche of the facility.
Beyond its environmental objectives, the facility is structured to deliver tangible economic benefits by strengthening local enterprises, supporting job creation and building resilience across climate-sensitive sectors.
Speaking at the signing ceremony in Lusaka, Zambia’s Minister of Green Economy and Environment Mike Mposha, who was represented by Permanent Secretary Douty Chibamba, said the US$50 million facility demonstrates how development finance can be channelled through local financial institutions to support green growth.
“By directing funding towards renewable energy, sustainable agriculture, water conservation, and climate-resilient infrastructure, this partnership supports Zambia’s national priorities while strengthening economic resilience. It also reflects the growing recognition that climate finance must reach businesses on the ground,” he said.
Netherlands Deputy Ambassador to Zambia, Malawi and Zimbabwe, Ilyaas Sherally, described the agreement as a symbol of resilience and innovation. He commended the Dutch Ministry of Foreign Affairs for its technical assistance and funding support, noting that it has ensured the facility is underpinned by strong environmental and social safeguards.
And FNB Zambia Chief Executive Officer Kapumpe Chola said the facility positions the bank to play a leading role in driving sustainable development by channelling funding into green sectors.
“This facility marks a significant step in our journey to align financial growth with environmental responsibility and inclusive development. Green finance is no longer a future aspiration, it is a present-day necessity,” she said.
“Through this partnership with FMO and WWF, we are enabling Zambian businesses, particularly climate-sensitive sectors, to grow sustainably while building resilience against climate risks. This is how we translate capital into shared prosperity for Zambia.”
Meanwhile, WWF Zambia Country Director Nalucha Nganga-Ziba said the partnership demonstrates the power of cross-sector collaboration in unlocking investments that protect Zambia’s climate and natural resources while creating opportunities for sustainable businesses.
Further commenting on the transaction, Angelica Ortiz de Haas, Manager Financial Institutions Africa at FMO, said partnerships of this nature are critical to accelerating Zambia’s transition to a more inclusive and climate-resilient economy.
“This facility reflects our shared 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.
