EU gives Zambia 34 million euros

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The European Union (EU) says it has earmarked 34 million euros (KR238 million) for budget support to Zambia this year.

EU also says the country’s growth projections are credible in view of the good copper prices on the London Metal Exchange (LME) and increased maize production in the agriculture sector.

Ambassador and head of EU delegation in Zambia Gilles Hervio said the budget support is to support effort’s of governmnet programmes in the country.

Mr Hervio was speaking in an exclusive interview in Lusaka yesterday.
He said this year’s budget support is in comparison with 33 million euros (KR231 million) provided to Government last year, with an additional 12 million euros for the health sector.

On growth projections, Mr Hervio is optimistic the country will continue to record steady growth.
He said the country has made tremendous progress in copper mining and agriculture sector.
“Growth projections for Zambia are credible, what we see is quite a level of growth particularly in copper production and agriculture which is mainly linked to maize production,”he said.

He, however, said it is important for the country to develop capacity to react to copper prices which could decline in the short to medium- term as a result of the Eurozone crisis.

Mr Hervio said while the country has made impressive progress with regard to high copper prices, it is also vulnerable to the events in the Eurozone.

Mr Hervio also commended Government for sustaining foreign direct investment (FDI) last year which stood at US$1.1 billion.