Zambia Secures Final US$190 Million IMF Disbursement
The Government of the Republic of Zambia has welcomed the approval by the International Monetary Fund (IMF) Executive Board of the sixth and final review under the 38-month Extended Credit Facility (ECF) Arrangement, unlocking a final disbursement of US$190 million.
The approval brings total disbursements under the IMF-supported programme to SDR 1,271.66 million, equivalent to approximately US$1.7 billion, and clears the way for discussions on a successor arrangement.
In its assessment, the IMF Executive Board noted that despite significant external and domestic shocks, Zambia has maintained broadly sound macroeconomic policies and continued to rebuild policy credibility.
Commenting on the development, Minister of Finance and National Planning, Dr Situmbeko Musokotwane, MP, said the approval marks a key milestone as Zambia transitions from economic stabilisation to a more growth-focused reform phase. He expressed gratitude to the IMF and other partners for their continued support throughout the reform period.
“We thank the IMF for its continued engagement and support, and we salute the people of Zambia, the private sector, and all economic players for believing in the Government’s vision to stabilise the economy, restore confidence, and place the country firmly on a growth path,” Dr Musokotwane said.
He added that the successful completion of the final review confirms Zambia’s sustained delivery on reform commitments, even under severe shocks, and sends a positive signal to citizens, markets, and development partners that fiscal discipline and policy credibility have been strengthened.
The Minister acknowledged the IMF’s assessment that programme performance was broadly satisfactory, while noting that some reforms were completed later than anticipated. He reaffirmed Government’s commitment to continued fiscal consolidation and debt sustainability in order to preserve hard-won macroeconomic stability.
Dr Musokotwane said the IMF Executive Board’s emphasis on stronger revenue mobilisation, prudent borrowing, and sustained fiscal discipline aligns with Government’s medium-term fiscal strategy and national budget framework.
He added that efforts will continue to rebuild external buffers, strengthen economic resilience, and protect a conducive environment for investment, job creation, and inclusive growth.
On the economic outlook, the Minister welcomed the IMF’s assessment that Zambia’s prospects remain positive, supported by strong mining activity, robust agricultural performance, and improving electricity generation. He said Government will continue advancing policies that attract private investment, improve the business climate, and promote economic diversification.
While noting the IMF’s assessment that Zambia’s public debt is sustainable, Dr Musokotwane acknowledged that it remains at high risk of overall and external debt distress. He emphasised the importance of continued engagement with creditors to secure lasting debt sustainability.
On governance, the Minister said the IMF’s emphasis on structural and institutional reforms aligns with Government’s agenda to strengthen transparency and accountability in the management of public resources.
“Governance reforms are central to Zambia’s national interest. Stronger institutions improve investor confidence, enhance service delivery, and ensure public resources translate into tangible results for citizens,” he said.
The Government also welcomed the IMF’s recognition of the importance of continued engagement with the Fund, including discussions towards a successor programme that consolidates gains and supports policy continuity.
“As we conclude this programme, our focus now shifts to the next phase. We will engage the IMF on a successor arrangement that builds on achieved stability while placing greater emphasis on growth, investment, job creation, and expanding Zambia’s productive capacity,” Dr Musokotwane said.
He reaffirmed that Zambia’s reform agenda remains nationally owned and anchored in long-term development objectives.
The Minister and IMF Resident Representative, Mr Eric Lautier, are expected to provide further commentary during a Town Hall Meeting on the 2021–2025 Economic Performance Review and the 2026 Budget and Economic Outlook, scheduled for tomorrow at the Mulungushi International Conference Centre in Lusaka.
