ZANACO launches 100m USD bond to support climate projects

The Zambia National Commercial Bank (ZANACO) has officially launched a landmark 100 million United States dollars Medium-Term Note Programme designed to fuel sustainability bonds across the country. Announced in Lusaka, this pioneering financial vehicle seeks to bridge critical funding gaps by channeling long-term private capital into green initiatives, renewable energy generation, and community-focused social projects. As the nation grapples with recurring climate shocks, including severe droughts that have heavily impacted both agriculture and electricity generation, the move marks a pivotal shift from policy commitment to practical economic execution. Led by ZANACO Chief Executive Officer Mukwandi Chibesakunda, the program's debut rollout features an initial tranche backed by key institutional partners, including the UK’s development finance institution, British International Investment (BII). Speaking at the Lusaka Securities Exchange (LuSE), executives emphasized that the funds will be meticulously deployed toward climate-smart infrastructure, sustainable agriculture, small and medium-sized enterprise (SME) development, and renewable energy solutions. This structured approach directly aligns with Zambia's National Green Growth Strategy (2024–2030) and the broader objectives outlined in the national Climate Change Act. Financial sector regulators and market players have hailed the development as a watershed moment for the Zambian capital markets. Nicholas Kabaso, Chief Executive Officer of the Lusaka Securities Exchange, noted that the initiative demonstrates the growing maturity and adaptability of local bourses in responding to global demands for responsible and inclusive financing. With regulatory frameworks such as the Securities and Exchange Commission's green bond guidelines providing vital incentives like withholding tax exemptions, the domestic market is increasingly viewed as a viable frontier for mobilizing climate finance. Beyond immediate capital