By Chris Mfula and Colleen Goko
LUSAKA (Reuters) -Zambia National Commercial Bank, or ZANACO, plans to raise $100 million through the country’s first sustainability bond, its Chief Executive Officer Mukwandi Chibesakunda said at a press briefing in Lusaka on Friday.
In the last few years such bonds, issued to raise capital for projects that deliver environmental and/or social benefits, have been issued by a wide range of countries across both developed and emerging markets.
ZANACO’s bond will be issued in two tranches, starting with a $50 million private placement within six months, followed by a $50 million public placement after the initial sale.
Chibesakunda said the bank is in talks with private investors and will disclose their identities once agreements are finalised.
Funds raised via the bond will support projects in renewable energy, sustainable agriculture and climate-resilient infrastructure, in line with Zambia’s Green Growth Strategy (2024–2030) and its Climate Change Act.
Chibesakunda described the issuance as “a promise to channel resources into projects that safeguard the environment and uplift communities,” calling it a milestone for Zambia’s capital markets.
Africa accounts for less than 1% of the global $2.2 trillion green bond market, according to the Africa Policy Research Institute, highlighting a significant gap in funding for climate-related initiatives on the continent.
Estimates from the World Bank suggest Africa would need $2.8 trillion by 2030 to implement its Nationally Determined Contributions, set as part of the 2015 Paris Agreement and aimed at cutting greenhouse gas emissions and adapting to climate change. That target is unlikely to be met through current climate-related budgets and donor pledges, however, based on historical trends.
(Reporting by Chris Mfula and Colleen Goko; Editing by Hugh Lawson)
