Zambia - Poverty Reduction Budget Support (PRBS I)

The proposed ADF loan of UA 20 million, envisages providing budget support during the 2007 fiscal year. The objective of the operation is to assist the Government to implement the FNDP in order to reduce poverty and improve service delivery in the country. The existing Poverty Reduction Budget Support covers four broad areas, namely, macroeconomic management, public sector reforms, wealth creation and social equity, with 33 indicators and milestones. Apart from jointly focusing on the overall Performance Assessment Framework (PAF) of the PRBS, the ADF will also focus on procurement and debt management reforms. These two areas of policy reforms are still outstanding, having commenced under the ADF funded Support for Fiscal Transparency and Accountability programme which is drawing to a close. Progress in these two areas is also critical for the ADF to consolidate the reforms that were initiated under the SFTA programme.