In Zambia, climate change poses significant threats to Micro, Small, and Medium Enterprises (MSMEs), which represent 97% of businesses and 88% of jobs. With support from AFI, the Ministry of Finance and National Planning has worked with partners to develop a Roadmap for Greening MSMEs, to encourage and enable small businesses to adopt green practices.
“The roadmap aims to empower MSMEs as drivers of climate adaptation, local innovation, and green job creation,” says Laura Ramos, AFI Senior Policy Manager for Inclusive Green Finance. “Focusing on women-led, rural, youth-owned, and informal enterprises, it sets out a phased plan to align policy frameworks, mobilize green and affordable finance, and support enterprise readiness and market access.”
The roadmap proposes multiple targeted interventions, including:
- Tax breaks and fast-track licensing for green-certified MSMEs
- Establishment of a green finance coordination unit
- Preferential access to public procurement schemes for green-certified businesses
- Support for MSMEs to obtain green certification and enter green markets
- Green credit guarantee schemes, readiness facilities, and MSME clustering models to reduce investment risks and transaction costs for green financing.
- Establishment of national green funds, embedding green criteria in bank lending, and developing green loan products
- Public-private partnerships to lower costs of green technology access, shared green infrastructure, and subsidized leasing schemes for equipment
- Training programs, business incubation hubs, and mentorship schemes to help MSMEs build capacity in green practices.
- Targeted financing schemes and technical assistance for women, youth, and persons with disabilities
Learn more in the video below, which features experts from the Ministry of Finance and National Planning and from Bank of Zambia, as well as from small businesses that are already benefiting from state initiatives to support green practices.
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