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Sixth and final review by the International Monetary Fund (IMF) under the 38-month extended credit facility arrangement supporting the national reform agenda has been completed.
The evaluation aimed at restoring macroeconomic stability, building economic resilience, and promoting sustainable and inclusive growth has shown economic strength amid external and domestic shocks.
In addition, IMF says reforms are essential to safeguard macroeconomic stability, debt and fiscal sustainability.
“With the ECF arrangement having been successfully completed, policy focus in 2026 remains on maintaining fiscal discipline and policy credibility to consolidate the hard-earned gains,” said the IMF Executive Board.
The completion of this review allows for an immediate disbursement of SDR 138.9 million (about US$190 million), bringing Zambia’s total disbursement under the ECF-supported program to SDR 1,271.66 million (about US$1.7 billion).
IMF said program performance has been broadly satisfactory, albeit with some delays on structural conditionality.
Currently the country’s economic outlook remains positive with real GDP growth estimated at 5.2 percent in 2025, underpinned by strong mining activities and record-high maize production.
“Real GDP growth in 2026 is projected at 5.8 percent on the back of continued recovery in electricity generation and strong performance in mining and services.”
Though the country’s public debt is assessed as sustainable but remains at high risk of overall and external debt distress.
“External debt restructuring continues to advance as five bilateral agreements with official creditors have been signed, and progress with commercial creditors is advancing. Provided that the authorities maintain the projected fiscal consolidation path, Zambia is expected to reach a moderate risk of external debt distress over the medium term.”
IMF applauds the country for significantly reducing macroeconomic imbalances, made considerable progress on debt restructuring, and undertaken sustained fiscal consolidation while safeguarding social spending.
“The performance under the program has been broadly satisfactory and the authorities should remain focused on maintaining prudent macroeconomic policies and advancing reforms to foster inclusive and private-sector-led growth. Continued engagement with the Fund and development partners would support these policy endeavors.”
