[{"bbox": [82, 146, 1147, 256], "category": "Text", "text": "The Support Measures – Cooperation Facility will contribute directly towards achieving the objectives of the EU-Zambia MIP 2021-2027 and other financial instruments. It builds directly on Zambia’s development priorities and will reinforce relations between the EU and Zambia in a context of increasing geopolitical competition. It will also facilitate strategic communication and, public diplomacy."}, {"bbox": [82, 278, 1147, 464], "category": "Text", "text": "The Support Measures – Cooperation Facility will address specific needs to enhance policy dialogue in strategic areas, support joint programming with EU Member States, enhance the mainstreaming of crosscutting issues such as human rights, gender (CLIP - Country-Level Implementation Plan - GAP III) and climate change and support to the private sector, which faces more and more of these issues with regard to trade with third countries and especially with the EU. Support will be aimed at policy implementation, policy development and new programme identification, specific capacity building related to new policy orientations and programmes, and complementary activities in focal sectors."}, {"bbox": [82, 490, 1147, 602], "category": "Text", "text": "Overall, the facility will contribute mainly to SDG 1 – No Poverty, SDG 5 – Gender equality and Women empowerment, SDG 10 – Reducing Inequalities and SDG 17 partnerships for the goals. The facility will also contribute to significantly and where necessary to 2, 3, 6, 8, 9, 13, 15, 16. It is complementary to and has synergies with the entire portfolio in as far as it will contribute to programming, implementation and evaluation as appropriate."}, {"bbox": [72, 627, 310, 662], "category": "Section-header", "text": "## 2. RATIONALE"}, {"bbox": [72, 690, 202, 720], "category": "Section-header", "text": "### 2.1 Context"}, {"bbox": [82, 735, 1147, 790], "category": "Text", "text": "Zambia is a peaceful, landlocked country with a liberalised economy. It is a rich country in terms of natural resources (land, water, mineral resources, wildlife, forests), with great potential for economic growth and development."}, {"bbox": [82, 814, 1147, 1029], "category": "Text", "text": "In the past decades, Zambia's economic growth has essentially been supported by copper mining. In 2020, the mining sector was the largest contributor to the economy, accounting for 21 % of GDP. It represents an estimated 30 % of domestic revenue. Copper itself accounts for more than 70% of exports of goods. The sector is the country's main supply of foreign exchange. Although Zambia is a member of the Extractive Industry Transparency Initiative (EITI) and has progressed in its indicators, governance remains a critical issue. The lack of fiscal-policy stability affects investments, production and employment in the sector. Unsustainable mining practices have added to Zambia's challenges with environmental degradation, human rights (working conditions, child labour) and livelihood, more particularly poverty and inequality."}, {"bbox": [82, 1052, 1147, 1532], "category": "Text", "text": "Zambia's agricultural sector represents the backbone of its rural economy and could significantly contribute to economic diversification and growth, to increasing resilience and preparedness for disasters (e.g. linked to climate change), to poverty reduction and diversified nutrition. It is also a sector that receives substantial focus in Zambia's Nationally Determined Contribution¹ and where efforts to align with commitments show promise. About 60 % of the population depends on agriculture for livelihood, and a large subset of the population, 80 %, live below the international poverty line. Agriculture remains a substantial contributor to non-traditional exports. Despite a declining contribution to GDP, employment in the sector remains high, but with a low level of labour productivity, resulting from unskilled subsistence agriculture, lacking access to productive assets and market opportunities. Limited crop diversity increases vulnerability to both environmental and market shocks. Over recent years, like many countries, Zambia has been experiencing unpredictable and more frequent adverse weather patterns, causing droughts and floods, with negative impacts on resources and livelihoods. However, there is huge potential for public and private sector investments in traditional or export agriculture and associated value chains, owing to Zambia's geographic location and agro-ecological diversity. This potential can boost Zambia's exports to the EU market contributing to its economic growth. Zambia could benefit from the Economic Partnership Agreement that is currently implemented by five Eastern and Southern Africa countries. Attention will thus need to be paid to issues related to trade and investment². To unfold this potential, especially in rural areas, access to energy and water as well as improving water efficiency and management remain critical, necessitating investments and management capacities in the agriculture-forestry-biodiversity-water and climate nexus, as well as the electricity-water nexus. Furthermore, Zambia recognises"}, {"bbox": [72, 1604, 841, 1626], "category": "Footnote", "text": "¹ Updated in July 2021: Microsoft Word - Final Zambia_Revised and Updated_NDC_2021.doc (unfccc.int)"}, {"bbox": [72, 1625, 1158, 1667], "category": "Footnote", "text": "² The EPA is currently under negotiations for its deepening towards a comprehensive and modern FTA encompassing all cross-cutting issues such as climate change and labour."}, {"bbox": [1072, 1667, 1158, 1688], "category": "Page-footer", "text": "Page 4 of 19"}]