Zambia: Crisis and Disaster Risk Financing Diagnostic

This diagnostic was prepared at the request of the Ministry of Finance and National Planning (MoFNP) of the Government of the Republic of Zambia (GRZ). It is part of a broader engagement with the World Bank regarding the strengthening of crisis and disaster risk financing (CDRF). The objective of this report is to summarize Zambia’s financial preparedness to crises and disasters at the sovereign, firm, and household levels. In this context, the focus is on the fiscal implications of the emergency response to shocks for the GRZ. However, it does not incorporate the financing of long-term reconstruction and resilience measures, which are mostly better financed through other long-term financing mechanisms rather than CDRF instruments. The report was prepared to provide recommendations to support the GRZ in their development of a credible strategy to meet the costs from potential future disasters.

The project was led by the World Bank Group’s Global Department for Finance, Competitiveness, and Investment (FCI), supported by the Risk Finance Umbrella (RFU) Program.