The Zambian government has completed the sixth and final review under the International Monetary Fund (IMF)-supported 38-month Extended Credit Facility (ECF) Arrangement, following approval by the IMF Executive Board on Tuesday. In its statement, the IMF Executive Board noted that despite significant external and domestic shocks, Zambia had maintained broadly sound macroeconomic policies and continued to rebuild policy credibility. Finance and National Planning Minister, Situmbeko Musokotwane, said the approval marked a key milestone as the country moves from a stabilization phase toward a growth-focused reform agenda.
“The approval unlocks the final disbursement of US$190 million and reflects Zambia’s consistent delivery on reform commitments, even under challenging conditions,” Musokotwane said. He acknowledged the role of cooperating partners, the private sector, and citizens in sustaining confidence during the reform period. “This final disbursement represents both financial support and a signal to citizens, markets, and development partners that Zambia has strengthened fiscal discipline and restored policy credibility,” Musokotwane said.
The Minister noted IMF’s assessment that programme performance was broadly satisfactory, although some reforms were implemented later than planned. He reaffirmed government’s commitment to fiscal consolidation and debt sustainability to preserve macroeconomic stability. Musokotwane said the IMF Executive Board’s emphasis on sustained fiscal discipline, improved domestic revenue mobilization, and prudent borrowing aligns with government’s medium-term fiscal strategy and the national budget framework.
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He added that maintaining macroeconomic stability, rebuilding external buffers, and carefully managing monetary policy to bring inflation within the 6–8 percent target band are essential to strengthening resilience and supporting investment, job creation, and economic growth. Regarding the economic outlook, the Minister noted that IMF assessed Zambia’s prospects as positive, supported by strong mining activity, improved agricultural performance, and increased electricity generation. The Minister also highlighted IMF’s observation that while Zambia’s public debt was assessed as sustainable, it remained at high risk of overall and external debt distress.
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