IMF staff and Zambian authorities have reached a staff-level agreement on the sixth and final review of the country’s 38-month Extended Credit Facility (ECF), paving the way for a disbursement of SDR 138.9 million (US$190 million), the Fund said Wednesday.
Since August 2022, Zambia has received SDR 1.27 billion (US$1.7 billion) under the program. The IMF said the government had made “significant progress” in reducing macroeconomic imbalances, rebuilding reserves, and advancing reforms to promote economic transformation.
Despite external and domestic shocks, Zambia’s economy continues to expand, with real GDP growth projected at 5.2 percent in 2025, supported by agriculture, mining, and trade. Inflationary pressures are easing gradually, aided by a stronger kwacha, lower fuel prices, and improved food supply.
The IMF highlighted that the current account deficit is expected to widen slightly to 2.1 percent of GDP in 2025 due to rising imports, but gross international reserves are projected to cover four months of imports by year-end. Over the medium term, growth is forecast to average 5.6 percent in 2026-31, with inflation gradually converging to the 6–8 percent target band by 2027.
Zambia has strengthened fiscal management, generating revenues of 22.6 percent of GDP (excluding grants) while increasing social spending. The 2025 primary surplus is projected at 2.2 percent of GDP. The IMF urged continued fiscal discipline, enhanced public financial management, and revenue mobilization to maintain debt sustainability.
The Fund also called for a carefully calibrated monetary policy to anchor inflation expectations, strengthen the operational monetary framework, and accumulate net international reserves. Structural reforms, particularly in governance, anti-corruption, and the energy sector, were cited as critical to promoting inclusive, private sector-led growth.
The IMF mission, led by Mercedes Vera Martin, met with government officials, central bank representatives, private sector actors, and civil society in Lusaka.
