Gov’t Clarifies Zambia’s IMF Programme Decision
The Zambian Government has moved to reassure citizens that the country is not disengaging from the International Monetary Fund (IMF), following the conclusion of the current IMF-supported Extended Credit Facility (ECF) programme.
In a detailed set of Frequently Asked Questions released on Friday, the Ministry of Finance and National Planning explained that Government has decided not to extend the existing ECF programme, which began in 2022, but will instead engage the IMF on a successor arrangement aligned with Zambia’s evolving economic priorities.
Minister of Finance and National Planning, Dr Situmbeko Musokotwane, said the decision was based on strong programme performance and the successful completion of agreed objectives, not political considerations.
“Zambia is not leaving the IMF and is not cutting ties with the Fund,” Dr Musokotwane said. “We remain members, as we have been since 1965, and engagement with the IMF will continue.”
According to the Ministry, the current programme has reached its natural conclusion after Zambia successfully completed all six IMF reviews. A short technical extension to January 2026 was granted solely to allow final assessments, with the last disbursement expected once approved by the IMF Executive Board.
The Government emphasised that the end of the programme does not signal an abandonment of reforms, fiscal discipline, or responsible borrowing. Public spending will remain within Parliament-approved limits under the 2026 National Budget, while debt sustainability and transparency will continue to guide economic management.
Dr Musokotwane noted that Zambia’s economic fundamentals have improved significantly under the programme. The economy has stabilised and returned to growth, inflation has declined steadily towards the target range of 6 to 8 per cent, and foreign exchange reserves have risen, with a target of four months of import cover by 2026.
The Ministry also highlighted progress on debt restructuring, stating that about 94 per cent of eligible external debt has been covered under agreed frameworks. Zambia has exited the period of debt default and restored normal debt service relations with creditors, with remaining steps nearing completion.
Looking ahead, Government plans to negotiate a longer-term successor programme with the IMF, placing greater emphasis on economic growth, investment, and job creation, while safeguarding macroeconomic stability.
“These reforms are nationally owned and designed to go beyond electoral cycles,” the Minister said. “They are undertaken because they benefit Zambia, not simply because of IMF involvement.”
The Ministry concluded by encouraging continued public engagement, reaffirming its commitment to responsible management of public resources, economic stability, and inclusive growth that improves livelihoods across the country.
