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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.
The approval clears the way for the immediate and final disbursement of Special Drawing Rights (SDR) 138.9 million, equivalent to about US$190 million, bringing total disbursements under the programme to SDR 1.27 billion (approximately US$1.7 billion).
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.
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.
He said the government will continue implementing policies to attract private investment, improve the business environment, support economic diversification, and promote inclusive growth.
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.
On governance, Musokotwane said IMF’s emphasis on structural and institutional reforms aligned with Government efforts to strengthen transparency and accountability in public resource management.
“Governance reforms are essential to Zambia’s national interest. Strong institutions and clear rules enhance investor confidence, improve service delivery, and ensure public resources generate tangible results for citizens,” he said.
The government also noted IMF Executive Board’s recognition of the importance of continued engagement with the Fund and other development partners, including discussions on a successor arrangement to consolidate gains and ensure policy continuity.
“As this programme concludes, the focus shifts to the next phase. We will work with the IMF on a successor arrangement that builds on achieved stability while emphasizing growth, investment, job creation, and expansion of productive capacity,” Musokotwane said.
He reaffirmed that Zambia’s reform agenda remained nationally owned and anchored in long-term development objectives.
“This milestone reinforces that Zambia has strengthened its macro-fiscal anchor. The government will continue disciplined fiscal management, prudent borrowing, and structural reforms to advance a more resilient and inclusive economy,” he added.
The completion of the IMF-supported ECF programme and approval of the final disbursement underscores Zambia’s strengthened policy credibility and improved macroeconomic management, achieved amid significant external and domestic challenges.
Discussions with the IMF on a successor arrangement will continue, supporting policy continuity and investor confidence as Zambia consolidates gains and advances inclusive, growth-oriented economic transformation.
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