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2020-01-01

Changes to the Terms and Conditions for the TMTRF - Interest Rate

Bank of Zambia issued this schedule to define priority sectors under the TMTRF interest rate terms, aligning them with the Seventh National Development Plan. The directive designates agriculture, manufacturing, energy, and tourism as priority sectors, specifying criteria for primary crop and animal production, material transformation, renewable energy resources, and domestic tourism expansion. Financial institutions must allocate financing to these designated areas or obtain case-by-case approval from the central bank for alternative classifications.

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# SCHEDULE I – DEFINITION OF PRIORITY SECTORS

As provided for under Section 2.2 of the Terms and Conditions, priority sectors shall be as identified in the Seventh National Development Plan (7NDP). These shall include agriculture, manufacturing, energy and tourism. What shall constitute these priority sectors, shall be as defined within the context below, or as approved by the Bank of Zambia on a case by case basis.

## Agriculture

Priority shall be to support primary production of crop and animal products, including the financing of the requisite inputs. That is, the financing of activities involved in the exploitation of vegetable and animal natural resources, comprising the activities of growing of crops and raising and breeding of animals, including fisheries from a farm or their natural habitats.

## Manufacturing

Manufacturing shall include the physical or chemical transformation of materials, substances, or components into new products. The output of a manufacturing process may be finished in which case it is ready for utilization or consumption, or it may be semi-finished to become an input for further manufacturing.

## Energy

Priority shall be given to renewable energy resources, such as, solar, wind, biomass, geothermal and nuclear.

## Tourism

Priority shall be given to activities focusing on the expansion of domestic tourism and the promotion of integration of tourist destinations.

December 11, 2020

Bank Square, Cairo Road, P.O. Box 30080, Lusaka, Zambia Tel:+260-211-399303, 399300, E-mail: dgo@boz.zm. Web: http://www.boz.zm
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