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Switzerland set to end development programs in Zambia, 2 other countries

Simon Osuji by Simon Osuji
January 30, 2025
in Business
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Switzerland set to end development programs in Zambia, 2 other countries
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This move follows a decision by the Swiss parliament in December to reduce funding for foreign aid, allocating slightly less than what the government had requested.

The Federal Council, Switzerland’s executive body, was notified of the budget cuts on Wednesday, which will impact various aspects of international cooperation, including bilateral, economic, and thematic cooperation, as well as multilateral organizations.

According to Swissinfo, the budget cuts amount to CHF110 million ($121 million) from the 2025 international cooperation budget and CHF321 million from the financial plan for 2026 to 2028.

These reductions reflect a shift in Switzerland’s approach to foreign aid, aligning with the country’s efforts to optimize its international cooperation investments.

Following a reduction in funding, the Swiss Agency for Development and Cooperation (SDC)—responsible for coordinating development activities, cooperation with Eastern Europe, and Swiss humanitarian aid—will conclude its bilateral development programs in Albania, Bangladesh, and Zambia by the end of 2028.

The statement added that from now until 2028, there will be significant cuts to country-specific and thematic programs, as well as partner organizations.

However, humanitarian aid, peacebuilding efforts, and support for Ukraine will remain unaffected.

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Swiss-Zambia relationship

Switzerland is investing significantly in Zambia’s development, with approximately CHF 3.5 million contributed annually to around a dozen projects.

In 2023, Zambia and Switzerland signed a comprehensive cooperation agreement, including humanitarian aid.

A notable initiative is the bilateral Swiss Cooperation Programme launched in 2023, worth USD 50 million, which focuses on crucial areas like food security, healthcare, social protection, climate change, and governance.¹

The Swiss Agency for Development and Cooperation (SDC) is also active in Zambia, operating a regional program for Southern Africa, with Zambia and Zimbabwe being priority countries under the SDC’s new program launched in 2023.

In terms of trade, the bilateral relationship between Switzerland and Zambia is relatively limited.

Switzerland mainly imports precious metals and agricultural products from Zambia, while exporting pharmaceuticals and machinery.

Interestingly, Switzerland has a significant presence in Zambia’s copper sector, with companies like Glencore playing a major role in the country’s mining industry.

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