A pioneering evaluation of budget support in Zambia could set the benchmark for assessing the impact of this type of aid in other countries.

While previous assessments have taken a high-level view of budget support, the two-year Zambian study used econometric analysis to provide detailed insights into the impact of budget support at a sectoral and household level on poverty and economic growth.

The evaluation, which was led by donors from Germany, the Netherlands and Sweden, examined budget support in five main sectors: agriculture, education, health, roads and water and sanitation. Macroeconomic and political economy analyses were also carried out. OPM was responsible for leading the case study on budget support in Zambia’s agricultural sector, focusing on the impact of a fertilizer support programme on maize production and household incomes using Propensity Score Matching difference-in-difference methodology.

While the research provided valuable insights for the government and donors in Zambia, the primary aim of the project was to develop a budget support evaluation approach that could be applied to any country. The synthesis report of the evaluation can be downloaded below.