IMF approves additional funds for Zambia

The International Monetary Fund (IMF) Executive Board has completed the third review of Zambia’s 38-month Extended Credit Facility (ECF) and approved an additional $569.6 million, raising total disbursements to $1.1 billion.

Despite a severe drought impacting agriculture and electricity generation, Zambia has met most performance criteria and remained committed to economic stability, fiscal and debt sustainability, and addressed humanitarian needs.

The ECF supports Zambia’s Eighth National Development Plan, aiming to stabilise the economy, ensure fiscal sustainability, improve governance, and promote inclusive growth.

IMF Deputy Managing Director Antoinette Sayeh commended Zambia’s satisfactory performance under the ECF but stressed the need for continued fiscal consolidation, revenue mobilisation, and public financial management reforms. She highlighted the importance of maintaining a tight monetary policy, implementing financial sector reforms, and enhancing governance to support sustainable growth and economic diversification.

Attribution: IMF.