EU gives Zambia 7.5m euros for sugar project, floods
By KANGWA MULENGA - 24 May 2008 - [Zambia Daily Mail]
The European Union (EU) has given Zambia a 7.5 million euro grant for the sugar production expansion programme and for mitigating the effects of the floods that ravaged the country.
Six million euros would go towards the expansion of the sugar production and 1.5 million euros for post-flood recovery programmes and for the provision of drugs against livestock diseases in Western and North-Western provinces.
Speaking at the signing ceremony in Lusaka yesterday, Minister of Finance and National Planning, Ng’andu Magande, commended the EU for its continued support to Zambia.
“The government of Zambia and its people are grateful to the EU for their continued support. The Zambian government appreciates these efforts that create a conducive environment for wealth creation,” Mr Magande said.
The minister said sugar production expansion aid would help Government to establish out-grower schemes aimed at empowering small-scale sugarcane producers.
Mr Magande said the fund would provide support towards the creation of a national sugar trade policy and a regulation framework that could contribute to the overall effectiveness and competitiveness of the Zambian sugar sector on the international market.
“The implementation of this programme will involve carrying out studies, design, review and prepare tender documents for alternative export routes such as the dry port for inter modal connection road rail in Chipata,” Mr Magande said.
The minister said the move would reduce the transport costs Zambia suffers mainly due to its land-locked position.
The minister said the post-flood recovery programme would go a long way in assisting Government reconstruct the damaged infrastructure.
Part of the money would go towards supporting disaster preparedness measures.
The Ministry of Agriculture, Road Development Agency, Disaster Management and Mitigation Unit and United Nations agencies, the FAO and UNDP would help in implementation of the disaster action recovery programme.
He said the grants Zambia has received from EU were a manifestation of the confidence cooperating partners had developed in Zambia as a result of its macroeconomic discipline.
“My ministry as a gatekeeper will ensure that the promises made on macroeconomic discipline are kept for the country to continue enjoying the confidence of its cooperating partners,” Mr Magande said.
EU Head of Delegation to Zambia, Derek Fee said Zambia had excellent climatic conditions for sugarcane growing but its contribution to the country’s economic growth was low.
Dr Fee said the weaknesses in the sector had prevented the industry from expanding beyond the size of the country’s domestic, regional and preferential export markets.
“The reform of the EU sugar regime is necessary in order to comply with the World Trade Organisation obligations, the burden of those reforms fall on the EU’s domestic sugar producers,” ambassador Fee said.
Dr Fee said the funds under the financing agreement would extend the work initiated last year towards the overall objective of increasing the sustainability of the sugar sector and its contribution to Zambia’s social economic development.
The European Union (EU) has given Zambia a 7.5 million euro grant for the sugar production expansion programme and for mitigating the effects of the floods that ravaged the country.
Six million euros would go towards the expansion of the sugar production and 1.5 million euros for post-flood recovery programmes and for the provision of drugs against livestock diseases in Western and North-Western provinces.
Speaking at the signing ceremony in Lusaka yesterday, Minister of Finance and National Planning, Ng’andu Magande, commended the EU for its continued support to Zambia.
“The government of Zambia and its people are grateful to the EU for their continued support. The Zambian government appreciates these efforts that create a conducive environment for wealth creation,” Mr Magande said.
The minister said sugar production expansion aid would help Government to establish out-grower schemes aimed at empowering small-scale sugarcane producers.
Mr Magande said the fund would provide support towards the creation of a national sugar trade policy and a regulation framework that could contribute to the overall effectiveness and competitiveness of the Zambian sugar sector on the international market.
“The implementation of this programme will involve carrying out studies, design, review and prepare tender documents for alternative export routes such as the dry port for inter modal connection road rail in Chipata,” Mr Magande said.
The minister said the move would reduce the transport costs Zambia suffers mainly due to its land-locked position.
The minister said the post-flood recovery programme would go a long way in assisting Government reconstruct the damaged infrastructure.
Part of the money would go towards supporting disaster preparedness measures.
The Ministry of Agriculture, Road Development Agency, Disaster Management and Mitigation Unit and United Nations agencies, the FAO and UNDP would help in implementation of the disaster action recovery programme.
He said the grants Zambia has received from EU were a manifestation of the confidence cooperating partners had developed in Zambia as a result of its macroeconomic discipline.
“My ministry as a gatekeeper will ensure that the promises made on macroeconomic discipline are kept for the country to continue enjoying the confidence of its cooperating partners,” Mr Magande said.
EU Head of Delegation to Zambia, Derek Fee said Zambia had excellent climatic conditions for sugarcane growing but its contribution to the country’s economic growth was low.
Dr Fee said the weaknesses in the sector had prevented the industry from expanding beyond the size of the country’s domestic, regional and preferential export markets.
“The reform of the EU sugar regime is necessary in order to comply with the World Trade Organisation obligations, the burden of those reforms fall on the EU’s domestic sugar producers,” ambassador Fee said.
Dr Fee said the funds under the financing agreement would extend the work initiated last year towards the overall objective of increasing the sustainability of the sugar sector and its contribution to Zambia’s social economic development.