14/01/2026
FNB Zambia Secures $50 million Facility To Boost Green Finance And Climate Resilience
First National Bank Zambia Limited (FNB) has signed a $50 million term facility with FMO, the Dutch entrepreneurial development bank, in a move aimed at expanding green finance, strengthening climate resilience and promoting inclusive economic growth in Zambia.
The facility is complemented by a $350,000 technical assistance package from the World Wide Fund for Nature (WWF), which will support the development of a Climate Adaptation Appraisal Framework at FNB Zambia to enhance the bank’s capacity to assess and manage climate-related risks.
Under the agreement, the entire facility will be directed towards eligible green projects, with 40 percent earmarked specifically for climate adaptation initiatives.
The funding will support investments in renewable energy, energy efficiency, sustainable agriculture, waste management and water conservation. A dedicated climate adaptation tranche is designed to help businesses and communities better withstand climate-related shocks and is financed through the Dutch Fund for Climate and Development (DFCD), which is backed by the European Commission.
WWF, a DFCD partner, is providing the matching technical assistance, while FMO is also mobilising commercial investors for the uncommitted tranche.
The long-tenor, affordable financing is expected to enable FNB Zambia to support medium- to long-term investments in sectors seen as critical to the country’s sustainable economic transformation. Beyond environmental outcomes, the facility is intended to generate broader economic benefits by strengthening local enterprises, supporting job creation and enabling communities to participate in the green economy.
FNB Zambia Chief Executive Officer Kapumpe Chola said the transaction marked a significant milestone in aligning financial growth with environmental responsibility and inclusive development.
“Green finance is no longer a future aspiration; it is a present-day necessity,” Mr. Chola said. “Through this partnership with FMO and WWF, we are enabling Zambian businesses, particularly those in climate-sensitive sectors, to grow sustainably while building resilience against climate risks.”
WWF Zambia Country Director Nalucha Nganga-Ziba said the partnership demonstrated the value of cross-sector collaboration in unlocking investments that protect Zambia’s climate and natural resources while creating opportunities for sustainable businesses.
FMO’s Manager for Financial Institutions in Africa, Angelica Ortiz de Haas, said the development bank was pleased to partner with FNB Zambia in advancing sustainable finance and climate resilience. She noted that the facility reflected a shared commitment to strengthening local financial institutions and ensuring that economic growth delivers long-term benefits for communities, businesses and the environment.
Green Economy and Environment Minister Mike Mposha, who was guest of honour at the signing ceremony, said the facility illustrated how development finance can be channelled through local banks to support green growth. He said directing funding towards renewable energy, sustainable agriculture, water conservation and climate-resilient infrastructure aligned with Zambia’s national priorities and underscored the need for climate finance to reach businesses on the ground.
The agreement also reinforces FNB Zambia’s commitment to strong Environmental, Social and Governance standards. The bank will continue to enhance its Environmental and Social Management System and apply International Finance Corporation performance standards to higher-risk transactions. As part of the facility, FNB Zambia has committed to implementing a robust climate risk assessment framework to strengthen preparedness as climate-related shocks increasingly affect businesses and financial systems.
As the bank approaches its 17th anniversary in April, the transaction highlights FNB Zambia’s long-term commitment to the country and its strategy of aligning financial growth with environmental sustainability and inclusive development.