The Dutch Fund for Climate and Development (DFCD) intends to partner with First National Bank (FNB) Zambia to strengthen climate-smart agriculture lending aimed at enhancing the resilience of small and medium-sized enterprises (SMEs) in Zambia’s agricultural sector.
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FNB Zambia, a subsidiary of the FirstRand Group, is among the country’s top six commercial banks by asset size and customer base. The bank serves clients across personal, business, and corporate banking segments and maintains a strong focus on agriculture. Its hybrid model combining traditional banking with digital solutions supports broad and inclusive financial access across Zambia.
The project with FNB Zambia has been put forward by FMO (Dutch Entrepreneurial Development Bank) as a new project within the Dutch Fund for Climate and Development. WWF-NL (World Wide Fund for Nature Netherlands) manages the DFCD’s Origination Facility together with SNV, a global development partner, to develop new projects for the climate investment fund.
WWF-NL intends to sign a $350,000 grant agreement with FNB Zambia. Together with WWF Zambia, the partners will design a scalable financing structure to support climate-smart agricultural solutions. This initiative responds to the growing need for sustainable agricultural practices as Zambia faces increasing vulnerability to drought and climate variability.
In Zambia, climate shocks such as recent severe droughts have resulted in declining agricultural yields and heightened food insecurity among vulnerable communities. Simultaneously, lower dam water levels have disrupted hydropower generation which supplies roughly 85% of the national grid causing widespread load shedding. These disruptions have significantly affected agribusinesses, particularly SMEs.
In response, FNB Zambia has observed a growing demand for climate-resilient solutions, such as smart irrigation systems and renewable energy technologies, within its agricultural lending portfolio. To meet this demand and strengthen its climate adaptation efforts, the bank seeks to enhance its institutional capacity and expand its climate-smart agriculture lending.
FNB Zambia has therefore applied for Origination Facility (OF) grant funding of $350,000, linked to FMO’s $50 million senior term loan facility (of which $20 million is sourced from the DFCD Land Use Facility).
The Origination Facility grant will support the following key activities:
These activities will strengthen FNB Zambia’s capacity to expand its climate-smart lending portfolio, enabling farmers and agribusinesses to adopt technologies that enhance water efficiency, reduce emissions, and increase productivity.
This facility is expected to deliver significant impact by increasing the area of farmland under sustainable management and improving climate-resilient livelihoods across Zambia. The project directly contributes to DFCD’s climate adaptation goals and advances key impact themes, including biodiversity conservation, water resource management, and gender equality and social inclusion (GESI).
“We are proud to partner with FNB Zambia to unlock the potential of climate-smart agriculture across the country. This collaboration marks a significant step toward supporting small and medium-sized enterprises in adapting to the realities of climate change while building resilient livelihoods. Through this initiative, DFCD is committed to driving scalable impact by strengthening institutional capacity, expanding access to sustainable finance, and promoting inclusive, nature-positive solutions.”
Nalucha Bernadette Nganga, Country Director, WWF Zambia
“At FNB Zambia, we recognize the urgent need to help our agricultural clients build resilience against climate shocks. Partnering with the DFCD enables us to scale our climate-smart lending and invest in solutions that promote water efficiency, renewable energy, and sustainable land use. This initiative aligns with our mission to drive inclusive growth and innovation within Zambia’s agricultural sector.”
Kapumpe Chola, FNB Zambia Chief Executive Officer (CEO)
For more information, please contact Tom Koper, DFCD Regional Advisor for Africa, at tkoper@wwf.nl.
For grievances related to this DFCD Origination Facility project, please reach out via our service desk at servicedesk@wwf.nl.
FNB Zambia is a leading commercial bank and a subsidiary of the FirstRand Group. The bank offers a wide range of financial services across personal, business, and corporate segments, underpinned by innovation and digital inclusion. With a strong presence in the agricultural sector, FNB Zambia is committed to driving sustainable growth and supporting local enterprises.
The Dutch Fund for Climate and Development (DFCD) is a climate fund, dedicated to supporting climate adaptation and mitigation projects which benefit vulnerable communities and landscapes. Initially funded by the Dutch government, it is powered by a consortium of four expert organisations: FMO (Dutch Entrepreneurial Development Bank), CFM (Climate Fund Managers), SNV, a global development partner, and WWF Netherlands.
