Zambia has successfully concluded its International Monetary Fund (IMF) Extended Credit Facility (ECF) programme, marking a major milestone in the country’s efforts to restore economic stability, manage debt, and strengthen fiscal discipline. However, economists caution that sustaining the gains achieved under the programme will require continued reforms and prudent economic management. Financial analyst Trevor Hambayi says the ECF programme has largely met its objectives of debt restructuring and macroeconomic stabilisation.
Mr Hambayi explains that the programme has created fiscal space, enabling the government to mobilize and allocate resources more effectively. “These resources have supported free education, the Constituency Development Fund (CDF), the Farmer Input Support Programme (FISP), and the Social Cash Transfer programme,” he said. Meanwhile, economist Kampamba Shula says Zambia has recorded notable progress following the completion of the IMF ECF programme, citing improved fiscal discipline, enhanced debt management, and restored policy credibility.
Mr Shula, however, warned that the economy is not yet fully stable and stressed the need for sustained reforms to consolidate the gains made. He emphasised the importance of maintaining fiscal discipline, predictable tax policies, and controlled government spending to ensure long-term economic stability.Mr Shula further noted that Zambia must accelerate efforts to diversify its economy beyond copper and strengthen energy reliability.“Zambia needs to continue reforms, diversify away from copper, ensure reliable energy supply, and strengthen fiscal management. Strong institutions will be key to achieving this,” he said.The economist identified falling copper prices, climate-related shocks, and political overspending during election periods as major risks that could undermine investor confidence and economic stability.“Any of these risks could undermine confidence, trigger currency volatility, and push up inflation.
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Consistency and transparency will be key,” he said.Mr Shula also praised reforms under the revised Banking and Financial Services Act, noting that stronger oversight and the introduction of deposit insurance have improved transparency and boosted confidence in Zambia’s banking sector.“Deposit insurance reassures households and businesses that their money is safe, and this aligns with Zambia’s IMF programme targets,” he said.He added that Zambia has met most of the IMF’s performance benchmarks, placing the country on a positive reform trajectory as it heads into 2026. He emphasised the importance of maintaining fiscal discipline, predictable tax policies, and controlled government spending to ensure long-term economic stability. Mr Shula further noted that Zambia must accelerate efforts to diversify its economy beyond copper and strengthen energy reliability.
“Zambia needs to continue reforms, diversify away from copper, ensure reliable energy supply, and strengthen fiscal management. Strong institutions will be key to achieving this,” he said. The economist identified falling copper prices, climate-related shocks, and political overspending during election periods as major risks that could undermine investor confidence and economic stability.
“Any of these risks could undermine confidence, trigger currency volatility, and push up inflation. Consistency and transparency will be key,” he said. Mr Shula also praised reforms under the revised Banking and Financial Services Act, noting that stronger oversight and the introduction of deposit insurance have improved transparency and boosted confidence in Zambia’s banking sector.
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