Government and IFAD Launch US$49.9 Million Project to Expand Financial Services in Rural Areas

The Government, in partnership with the International Fund for Agricultural Development (IFAD), has launched a US$49.9 million project aimed at increasing access to financial services for rural communities across the country.

The seven-year Financial Inclusion for Resilience and Innovation Project (FIRIP) will be implemented by the Ministry of Finance and National Planning with support from IFAD.

Ministry of Finance and National Planning Permanent Secretary for Economic Management and Finance, Mulele Mulele, said the initiative is expected to benefit more than 300,000 producers, ultimately reaching around 1.8 million people living in rural households through improved access to financial services.

Mr Mulele, whose speech was delivered by Director of Economic Finance Akapelwa Imwiko at the Financial Inclusion Stakeholders' Meeting, said the project is designed to strengthen financial inclusion, enhance resilience and promote sustainable economic growth in rural areas.

Meanwhile, IFAD Country Programme Coordinator Brian Kapotwe noted that Zambia has continued to make significant progress in financial inclusion, with the national financial inclusion rate increasing to 80.4%

Mr Kapotwe said the new initiative would build on these achievements by extending financial services to underserved rural populations and supporting inclusive economic development.

FIRIP Project Coordinator Derrick Simukoko said the project is being financed through contributions from the Government, IFAD, development partners, the private sector and project beneficiaries, reflecting a broad partnership to improve financial access and strengthen rural livelihoods.