Finland and Zambia to strengthen the development partnership: focus on sustainable economic growth
Bilateral consultations between the Government of the Republic of Zambia and the Government of the Republic of Finland took place on 19-21 May in Lusaka.
Finland’s Under-Secretary of State for Development Policy, Ms. Ritva Koukku-Ronde, emphasized the excellent relations between Finland and Zambia. A broad range of issues were discussed including poverty eradication based on sustainable economic growth, rule of law, good governance and fight against corruption. The 3-day negotiations aimed to strengthen broad partnerships between all stakeholders and to enhance the effectiveness of Finnish-Zambian co-operation in the key areas of environment, private sector development and agriculture & rural development. Finland’s bilateral development assistance to Zambia amounts to 21 million euros in 2010 and it is expected to grow moderately in the coming years.
During the talks Ms. Koukku-Ronde and the head of the Zambian delegation, Minister of Finance Situmbeko Musokotwane highlighted the importance of increased trade and investment as catalysts for development. Under the Aid-for-Trade Action Plan, Finland will continue to increase cooperation with Zambia to strengthen productive capacities especially within the micro, small, and medium-sized enterprise sector. To that end, the countries signed an agreement for Finland’s support to the Second Phase of the Private Sector Development Reform Programme with a total commitment of 8 million euros over 2010-2014.
The governments also confirmed their commitment to increase collaboration on climate change mitigation and adaptation. The countries will strive to ensure that all cooperation is climate proofed. Sustainable forest management is at the core of these efforts. Furthermore, the governments agreed to study the feasibility of Finland’s support to energy sector.
The launch of the OECD Policy Framework for Investment in Zambia, a project co-financed by Finland, took place on Friday 21 May. Ms. Koukku-Ronde commended the Minister of Commerce, Trade, and Industry Felix Mutati for the strong leadership Zambia has shown for sustainable global and regional integration at various fora, including regional economic communities and the World Trade Organisation. Both parties re-iterated the need to conclude the Doha Development Round trade negotiations of the WTO and the EPA negotiations with the EU as soon as possible. Finland re-confirmed its support to Zambia’s on-going efforts with the neighbouring countries to boost priority infrastructure programmes such as the North-South Corridor.
Consultations included a stakeholder consultation on Wednesday 19 May, at which a wide variety of civil society organizations and business associations discussed topics relevant to the Finnish-Zambian cooperation. Good governance was commonly emphasized as a key to national development and the goal of Zambia to become a prosperous middle-income country by 2030.