Improving good financial governance in Zambia

Strengthening Good Financial Governance in Zambia IV

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  • Commissioning Party

    German Federal Ministry for Economic Cooperation and Development (BMZ)

  • Cofinancier

    European Union, United States Agency for International Development

  • Country
  • Lead executing agency


  • Overall term

    2023 to 2027

  • Other Stakeholders

    Zambia Revenue Authority, Zambia Public Procurement Agency, Cabinet Office

  • Products and expertise

    Governance and Democracy

A group of people pose for a photo at the opening of the programme.


Zambia has enjoyed impressive economic growth in recent years. Despite this, it has not been possible to reduce widespread poverty and reduce inequalities. In 2022, 60 per cent of the population lived below the poverty line, and almost half were living in extreme poverty. In addition, women are often disadvantaged; climate change has an impact on agricultural production and hydropower generation. This is increasing Zambia’s funding shortfall: the country does not have sufficient funds of its own to implement important projects.

After years of increasing budget deficits, Zambia was no longer able to service its foreign debt in November 2020. In September 2022, a programme was therefore agreed with the International Monetary Fund (IMF). In it, the Zambian Government committed to ambitious reforms in the public finance system.


Zambia is reforming its public finances, giving it the financial leeway to utilise public funds in a development-oriented manner, and reduce poverty and inequality.

A group of people pose for a photo in a green park.


The programme advises the government on reforms and operates in four areas:

  • It promotes fiscal sustainability through improved budget planning, risk and debt management. It also provides advice on implementing a decentralised financial structure with more powers for the municipalities.
  • It improves efficiency in the use of resources and is committed to taking greater account of gender equality and climate projects in government spending.
  • It supports in mobilising domestic revenue in order to create a fairer and more efficient tax policy and increase the tax compliance rate.
  • It promotes change management and organisational development as well as in professionalising the public sector so that reforms can be better managed and implemented.

The European Union and USAID are contributing financially to the project.

Several people inaugurate a van featuring a ‘Mobile Tax Office’ logo.

Last update: November 2023

Additional information