IMF approves $184m disbursement to Zambia

The International Monetary Fund (IMF) has completed the fourth review of Zambia’s 38-month Extended Credit Facility (ECF) Arrangement, allowing an immediate disbursement of about $184 million. This brings Zambia’s total disbursements under the programme to $1.3 billion.

The IMF highlighted Zambia’s broadly satisfactory programme performance despite challenges from a historic drought that has contracted agriculture and electricity production. Growth is now projected to slow to 1.2 per cent in 2024, with inflation rising due to higher food prices and currency depreciation.

Authorities remain committed to restoring fiscal and debt sustainability while supporting vulnerable households and advancing structural reforms, including governance improvements and energy sector changes. Zambia’s public debt is considered sustainable but remains at high risk of external distress in the near term, with a moderate risk projected over the medium term.

Attribution: IMF

Subediting: M. S. Salama