Zambia crisis and disaster risk financing diagnostic

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 (that is, tax, aid, debt) rather than CDRF instruments.

The report sets out recommendations such as: 

• Develop a National Crisis and Disaster Risk Financing Strategy, which would be coordinated by the Ministry of Finance and National Planning, with input from all of the key line ministries and external partners (Short-term). 
• Build on the momentum of past years and continue investing in scalable delivery systems to ensure quick response once financing is available (Medium-term). 
• Continue to invest in the local understanding of risk exposure (Mediumterm).
• To enhance the efficiency and speed of response funds — while also maintaining accountability — the GRZ must strengthen its PFM mechanism to allow for the faster flow of funds (Medium-term).