/ 19 September 2006

Zambia gets $100m in Western aid

Zambia has received more than $100-million in aid this year from Western donors, a senior official said on Monday.

”The European Union has disbursed $45-million as direct budget support … while the UK has disbursed $14,4-million,” said Evans Chibiliti, head of Zambia’s treasury.

”The total support to Zambia now stands at $102-million disbursed … this year,” he said, adding that other donors included non-EU member.

He said the World Bank contribution of $37,2-million was in part a loan facility for farmers and the rest was meant for upgrading roads.

He said the British funds will be used to provide free medical services in rural areas following a government decision to waive fees in April for patients living in remote areas.

Zambia this year got a waiver of $3,8-million of the estimated $6,5-million it owes various creditors, including the World Bank and the International Monetary Fund.

The impoverished Southern African country’s external debt is estimated to reduce to about $500-million by the end of the year, according to the treasury officials. – Sapa-AFP