Zambia secures $120m World Bank grant to accelerate digital transformation, AI integration

Zambia Unveils Ambitious Digital Overhaul with $120M World Bank Grant, Targets AI and Connectivity Boost
ICT sector growth soars as nation positions itself as Southern Africa’s tech hub.

In a landmark move to cement its digital future, Zambia has secured a $120 million grant from the World Bank. The grant will will to drive nationwide connectivity, artificial intelligence (AI) adoption, and workforce modernization. Announced by Science and Technology Minister Felix Mutati at the Global Digital Summit 2025, the funding underscores Zambia’s rapid ICT sector growth. ICT growth has outpaced regional peers with a 40.1% surge in 2018 and sustained expansion into 2024.

“Digital transformation is non-negotiable. This grant will democratize access, empower SMEs, and position Zambia as Africa’s next tech powerhouse. AI isn’t just a tool—it’s our bridge to solving malnutrition and climate challenges,” said Mutati.

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Strategic Focus of the Grant

1. Rural Connectivity: Deploy 1,000+ solar-powered internet hubs to bridge the urban-rural divide, targeting 85% nationwide coverage by 2027.
2. AI Innovation Labs: Establish centers in Lusaka and Ndola to foster AI-driven solutions in agriculture, healthcare, and fintech.
3. Digital Skills Training: Upskill 500,000 youths in coding, cybersecurity, and data analytics through partnerships with Microsoft and AWS Academy.
4. Smart Governance: Digitize 90% of public services, including e-passports and land registry systems, under the Smart Zambia initiative.

“Our collaboration with Silicon Valley firms and the World Bank signals Zambia’s readiness to lead in Fourth Industrial Revolution technologies,” said Dr. Chibamba Kanyama, Zambia’s Ambassador to the USA.

ICT Sector Growth & Investments

• Mobile Penetration: Active subscriptions hit 21.1 million in 2023 (110% penetration rate), driven by affordable data plans from MTN and Airtel.
• Investment Influx: $54M+ attracted in 2024 for fiber-optic expansion and drone-based medical supply delivery in partnership with Zipline.
• Regional Leadership: Zambia’s ICT growth outpaces neighbors like Zimbabwe (12.3% in 2023) and Malawi (9.8%), per AfroTech Insights.

“From e-government to drone corridors, we’re building an ecosystem where innovation meets impact,” said Percy Chinyama, Smart Zambia National Coordinator.

Global Digital Summit 2025 Highlights

Held under the theme Connect, Innovate, Transform, the summit featured Zambia’s “Digital ID for All” pilot, which has enrolled 6 million citizens since 2023. Secretary to Cabinet Patrick Kangwa emphasized leveraging blockchain for transparent mining revenue tracking—a critical step as copper exports fuel 70% of Zambia’s GDP.

Challenges & Opportunities

• Digital Divide: 65% of rural Zambians lack internet access (World Bank).
• Cybersecurity: New National Cyber Security Authority to combat rising threats.
• Job Creation: Projected 200,000 tech jobs by 2026, targeting youth unemployment (38.4% in 2024).