IMF Praises Zambia’s Resilience in Sixth ECF Review
An International Monetary Fund (IMF) mission has concluded its visit to Zambia to assess progress under the country’s Extended Credit Facility (ECF) programme. The mission, led by Ms Mercedes Vera Martin, met with government officials, private sector representatives, civil society, and development partners from 22 October to 4 November 2025.
In a statement at the end of the mission, Ms Vera Martin said discussions with the Zambian authorities were “constructive and productive,” focusing on recent economic developments and policy measures needed to advance reforms under the ECF-supported programme.
The IMF team highlighted Zambia’s economic resilience despite last year’s drought, citing a record maize harvest and strong mining production. Real GDP growth reached 3.8 percent in 2024 and 4.5 percent in the first half of 2025, with projections of 5.2 percent in 2025 and 5.8 percent in 2026. Inflationary pressures have eased due to lower fuel and food prices, exchange rate appreciation, and tight monetary policy.
Preliminary data show a current account deficit of 2.0 percent of GDP in the first half of 2025, driven by reduced official grants and increased imports. Liquidity conditions have improved, investor demand for government securities remains strong, and private sector credit has supported the manufacturing, agriculture, and energy sectors.
The mission noted progress in implementing the programme, including legislative reforms to strengthen financial sector supervision, governance of state-owned enterprises, and anti-corruption measures. Discussions also addressed policies to improve competition, enhance private sector participation in agriculture, and implement the open-access framework for the Tazama pipeline.
Ms Vera Martin said the Zambian authorities reaffirmed their commitment to policies aimed at preserving macroeconomic stability, sustaining growth, and continuing fiscal consolidation efforts. She stressed that maintaining this momentum will be key to rebuilding economic buffers and ensuring the benefits of renewed stability reach all Zambians.
The IMF mission expressed its appreciation to the Zambian authorities for their cooperation and indicated that discussions would continue virtually in the coming weeks, ahead of the report to the IMF Executive Board.
