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Zambia has received a major boost from the International Monetary Fund (IMF), which has approved the fifth review of the country’s Extended Credit Facility (ECF) programme.
The approval unlocks an immediate disbursement of about US$184 million, bringing total IMF support under the programme to over US$1.55 billion since 2022.
This is according to a statement issued from Washington DC on Friday.
The 38-month programme, which began in August 2022, is designed to stabilize the economy, reduce debt, strengthen governance, and promote inclusive growth.
Read more: Zambia’s decision on future IMF programme pending —Musokotwane
How Is Zambia Performing?
According to the IMF, Zambia’s progress under the programme has been broadly satisfactory, despite some challenges.
The government met all targets for December 2024 and most of those for March 2025.
However, there were shortfalls in areas such as non-mining tax revenue, arrears clearance, and foreign reserves.
Zambia also missed some reform deadlines, particularly on debt management and governance, but the IMF has given extra time for these to be completed.
Economic Outlook Brightens After Drought
The IMF noted that Zambia’s economy is recovering strongly after last year’s historic drought.
The IMF further stated that growth in 2024 was expected to reach four percent, thanks to a rebound in mining and services.
In 2025, the economy was projected to expand even faster, at 5.8 percent, supported by a strong agricultural recovery and continued mining growth.
Inflation, which has been stubbornly high, is expected to ease to around 11 percent by the end of 2025.
However, the IMF warned that risks remain, especially from global economic uncertainties.
Debt Situation Improving but Still Risky
Zambia’s public debt remains high, but the IMF said it was now sustainable, though the country was still at high risk of distress.
The government has reached agreements with most commercial creditors and was working on deals with official bilateral lenders.
If progress continues, Zambia is expected to move to a moderate risk level in the medium term.
What the IMF Says
IMF First Deputy Managing Director, Gita Gopinath, praised Zambia’s resilience, saying:
“Economic policies have helped stabilize Zambia’s economy, which proved more resilient than expected after the severe drought in 2024. Mining, agriculture, and services are bouncing back, and inflation is starting to decline.”
She urged the government to stay on track with fiscal discipline, continue governance and anti-corruption reforms, and build climate resilience to support long-term growth.
“Enhancing revenue collection, improving spending transparency, and investing in climate-smart agriculture and energy reforms will be crucial for Zambia’s future,” Gopinath added.
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