The World Bank has expressed readiness to begin preparations for a proposed US$102 million Lobito Plantation Forest Economy Programme in Zambia, subject to a formal request from the Government. The proposed initiative was discussed yesterday during a meeting between Minister of Green Economy and Environment Dr Gilbert Siame, Permanent Secretary Dr Douty Chibamba and a World Bank team led by Ambroise Brenier in Lusaka. The programme is expected to place plantation forestry at the centre of Zambia’s efforts to expand its forest economy and attract private sector investment. It would also seek to take advantage of improved transport and market access expected through the development of the Lobito Corridor. If taken forward, the programme could create new opportunities across forestry, timber processing, manufacturing, logistics and related industries.
The proposed US$102 million programme is designed to promote private sector-led plantation forestry while supporting employment and economic activity across the forestry value chain. A key area of focus could be the expansion of sustainable pine and eucalyptus plantations, which would provide raw materials for a growing timber processing industry. Increased processing capacity could also help Zambia move beyond the production of raw forestry products and develop more value-added activities within the country. Better access to domestic, regional and international markets could further strengthen the commercial potential of the sector. The development of the Lobito Corridor is expected to play an important role by improving connectivity and creating new opportunities for producers and businesses seeking access to markets.
Dr Siame welcomed the proposed programme and highlighted its potential to mobilise private investment into Zambia’s forestry sector. The minister also pointed to the potential for the initiative to generate additional revenue for the National Treasury while creating employment opportunities in different parts of the forestry value chain. Plantation development can support jobs beyond the planting and harvesting stages, including nursery operations, transport, timber processing, manufacturing and other support services. The programme could therefore have an impact across several areas of the economy if investments are structured to support local participation. Its potential contribution to Zambia’s broader green industrialisation ambitions also makes the proposed initiative relevant to the country’s efforts to develop productive industries linked to natural resources.
The minister stressed that the programme should deliver clear benefits over the short, medium and long term, with measurable impacts used to assess its progress. He also emphasised the importance of ensuring that local communities, small-scale producers and outgrowers participate meaningfully in the opportunities created by the programme. This would be important as plantation forestry expands and new commercial partnerships are developed across the country. Greater participation by small producers could help distribute economic benefits beyond large companies and create stronger links between communities and formal forestry markets. The focus on measurable outcomes would also provide a basis for assessing whether the programme is delivering the employment, investment and economic benefits expected from the proposed US$102 million intervention.
Sustainable forest management was another major issue raised during the discussions, reflecting the need to balance economic development with environmental protection. Dr Siame highlighted issues including land-tenure arrangements, forest certification, traceability and the management of fires, pests and water resources. These considerations will be important as Zambia seeks to expand plantation forestry without undermining environmental sustainability or the long-term productivity of forest resources. Clear land arrangements could also provide greater certainty for investors, communities and small-scale producers involved in plantation activities. Forest certification and traceability could further help businesses meet market requirements and demonstrate that timber is produced through responsible and sustainable practices.
The proposed programme could also bring together different forms of public and private financing through the World Bank’s International Development Association, International Finance Corporation and Multilateral Investment Guarantee Agency. This approach could help attract private companies while addressing some of the commercial risks associated with long-term forestry investments. It could also create opportunities for communities and small-scale producers to participate in the sector alongside larger private investors. Combining different financing mechanisms could therefore support plantation development, timber processing and other investments needed to build a stronger forestry value chain. The involvement of institutions with different roles in financing, private sector development and investment risk management could also help create a broader framework for the proposed programme.
The Lobito Corridor is expected to be an important part of the programme’s wider economic rationale because improved transport connections could strengthen Zambia’s access to regional and international markets. Plantation forestry stakeholders are expected to be included in consultations relating to the corridor, while the timber value chain could be considered during the detailed design of corridor infrastructure. This could help ensure that transport investments take account of the needs of forestry producers, processors and other businesses involved in the timber industry. Better infrastructure could reduce some of the logistical challenges faced by businesses moving timber and processed products to markets. It could also create conditions for increased private investment if companies see improved market access as a foundation for long-term commercial opportunities.
The proposed initiative would complement existing Government and World Bank investments in sustainable landscape management in Zambia. Its broader objectives could support green industrialisation, employment creation, export diversification and inclusive economic growth under the Grow Zambia agenda. For the forestry sector, this could mean developing stronger links between plantations, processing facilities, local communities, transport infrastructure and domestic and international markets. However, the programme will need to balance investment and production targets with strong environmental safeguards and meaningful community participation. The emphasis placed by the minister on measurable benefits and sustainable management indicates that economic expansion is expected to go hand in hand with responsible use of Zambia’s forest resources.
The World Bank’s readiness to commence preparation marks an early step in the development of the proposed US$102 million Lobito Plantation Forest Economy Programme, rather than confirmation that the programme has already been fully approved or implemented. A formal request from the Zambian Government remains a condition for the preparation process to move forward. Further consultations and detailed programme design would be needed to establish the specific investments, financing arrangements, beneficiaries and implementation framework. Stakeholder participation will also be important in determining how the programme can support private investors while creating opportunities for communities, small-scale producers and outgrowers. If the proposal progresses, the initiative could become an important component of efforts to expand Zambia’s forestry value chain and connect it more effectively to the economic opportunities associated with the Lobito Corridor.