Zambia Pursues Homegrown Economic Solutions, Ends IMF Program
The Zambian government’s decision to halt participation in the International Monetary Fund (IMF) extended credit facility marks a strategic move towards economic sovereignty and homegrown solutions. While IMF support can offer short-term financial relief, it often comes with conditionalities that restrict government policy flexibility.
Under President Hakainde Hichilema, the UPND administration is prioritising reforms aimed at strengthening domestic economic resilience, stabilising the Kwacha, and building confidence in Zambia’s own economic policies.
“From our perspective at the Action Institute for Policy Analysis Centre (AIPAC), this decision reflects a commitment to charting a path that is uniquely Zambian, leveraging our resources, our people, and our strategic vision for sustainable growth,” said Solomon Ngoma, Executive Director of AIPAC.
Ngoma added that early signs are encouraging, pointing to the performance of the Kwacha against major currencies as evidence that disciplined fiscal management and structural reforms can yield results without reliance on external prescriptions.
The government’s decision also aligns with its ambition to position Zambia as a regional green energy leader by 2030. By focusing on renewable energy projects and sustainable development, the country is signalling that its future prosperity will be founded on innovation and regional leadership in the green economy.
“In short, while the IMF programme might have offered short-term relief, Zambia’s choice is about long-term transformation. It is about building confidence in our own policies, strengthening economic independence, and laying the foundation for a future where Zambia leads the region in sustainable energy and inclusive growth,” Ngoma concluded.
