CTPD Warns U.S. AfDB Exit Could Derail Zambia’s Development Ambitions
The Centre for Trade Policy and Development (CTPD) has sounded the alarm over the United States’ impending withdrawal of USD 555 million in funding from the African Development Bank’s concessional window, warning that the move could significantly jeopardize Zambia’s development trajectory.
Speaking in a statement issued today, CTPD Trade and Investment Researcher Barnabas Mwale expressed deep concern, stressing that Zambia risks losing vital financing for projects that are crucial to its economic transformation under the 8th National Development Plan and Vision 2030.
“The U.S. has historically been one of the largest non-regional contributors to the AfDB,” Mwale said. “Its potential pullout raises uncertainty over the continuity of critical development projects across Africa, Zambia included.”
Mwale noted that the African Development Bank currently has 24 active projects in Zambia valued at more than USD 872 million, with a focus on transport infrastructure, water and sanitation, agriculture, power, and social services. He cautioned that any disruption in funding could have a direct impact on rural connectivity, electrification, irrigation, and access to clean water key pillars of Zambia’s development agenda.
“We are urging the Zambian government to reassess its development financing strategies,” Mwale added. “This includes diversifying sources of funding and strengthening domestic resource mobilization to cushion against such international shocks.”
CTPD further backed AfDB President Dr. Akinwumi Adesina’s call for African nations to become more self-reliant. Mwale emphasized that Zambia must cut inefficiencies in public spending and leverage opportunities within the African Continental Free Trade Area (AfCFTA) by supporting local manufacturing and boosting exports.
“This is a wake-up call for the continent. Zambia must prepare for a future where donor reliance is no longer sustainable,” he said.
As the U.S. recalibrates its international development commitments, the implications for Zambia’s infrastructure, agriculture, and energy sectors remain uncertain a gap the country must now urgently work to bridge.
May 8, 2025
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