Zambia - Country Partnership Framework for the Period FY25-FY29

Document ofThe World Bank Group FOR OFFICIAL USE ONLY INTERNATIONAL DEVELOPMENT ASSOCIATION INTERNATIONAL FINANCE CORPORATION MULTILATERAL INVESTMENT GUARANTEE AGENCY COUNTRY PARTNERSHIP FRAMEWORK FOR REPUBLIC OF ZAMBIA FOR THE PERIOD FY25–FY29 September 5, 2024 Zambia Country Management UnitEastern and Southern Africa Region The International Finance CorporationAfrica Region The Multilateral Investment Guarantee Agency This document is being made publicly available prior to Board consideration. It may be updatedfollowing Board considerations, and the updated document will be made publicly available inaccordance with the Bank’s policy on Access to Information.Public Disclosure Authorized The date of the last Country Partnership Framework was February 14, 2019. FISCAL YEARJanuary 1 – December 31 CURRENCY EQUIVALENTS(August 30, 2024)Currency Unit – Zambian Kwacha (K)K 26.1 = 1 US Dollar ABBREVIATIONS AND ACRONYMS MIGAMOUMPAMSMEMWOCCPEAPFMPforRPHCPIMPISAPIUPLRPPGPPPPSWSADCSCDSCTSDGSMESOESPJSSATBTVETUSAIDWASHWBGWTOZESCOZPPAMultilateral Investment Guarantee AgencyMemorandum of UnderstandingMinistries, provinces, and agenciesMicro, Small and Medium Size EnterprisesMegawattOfficial Creditors CommitteePoverty and Equity AssessmentPublic Financial ManagementProgram-for-ResultsPrimary HealthcarePublic Investment ManagementProgram for International StudentProject Implementation UnitPerformance and Learning ReviewPublic and Publicly GuaranteedPublic-Private PartnershipPrivate Sector WindowSouthern African Development CommunitySystematic Country DiagnosticSocial Cash TransferSustainable Development GoalSmall and Medium EnterprisesState Owned EnterpriseSocial Protection and JobsSub-Saharan AfricanTuberculosisTechnical and Vocational Education andTrainingThe United States Agency for InternationalDevelopmentWater, Sanitation and HealthWorld Bank GroupWorld Trade OrganizationZambia Electricity Supply Corporation LimitedZambia Public Procurement Authority FY25–FY29 COUNTRY PARTNERSHIP FRAMEWORK FORTHE REPUBLIC OF ZAMBIA TABLE OF CONTENTS I.INTRODUCTION............................................................................................................................ 1II.COUNTRY CONTEXT AND DEVELOPMENT AGENDA....................................................................... 22.1Social and Political Context ......................................................................................................... 22.2Recent Economic Developments................................................................................................. 42.3Poverty and Shared Prosperity.................................................................................................... 62.4Main Development Challenges.................................................................................................... 7III.WORLD BANK GROUP PARTNERSHIP FRAMEWORK...................................................................... 83.1Government Program.................................................................................................................. 83.2Proposed WBG Country Partnership Framework........................................................................ 93.3Implementing the CPF ............................................................................................................... 17IV.MANAGING RISKS TO THE CPF PROGRAM .................................................................................. 19Annex I: Results Framework for Zambia CPF FY25–FY29............................................................................ 21Annex II: Country Partnership Framework FY19–FY24 Completion and Learning Review......................... 35Annex III: Streamlined Systematic Country Diagnostic Update.................................................................. 75Annex IV: Selected Indicators of Bank Portfolio Performance and Management...................................... 93Annex V: Operations Portfolio (IDA and Grants) ........................................................................................ 94Annex VI: IFC Committed and Outstanding Portfolio by Industry Group (as of June 30, 2024)................. 96Annex VII: MIGA’s Guarantee Portfolio (as of June 30, 2024).................................................................... 97 FY25–FY29 COUNTRY PARTNERSHIP FRAMEWORK FOR THE REPUBLIC OF ZAMBIA I.INTRODUCTION 1.The proposed Country Partnership Framework (CPF) lays out the priorities for the World BankGroup’s (WBG’s) engagement to support Zambia during a critical time of recovery from shocks andrefocus on inclusive and more resilient growth and job creation.The FY25–FY29 CPF maintains thestrategic directions of the previous FY19–FY24 CPF, with a sharpened focus on specific areas of privatesector-ledgrowth,human capital development,and climate resilience in response to evolvingdevelopment challenges. This CPF was informed by extensive stakeholder consultations