GOVERNMENT has decided to extend its economic reform programme, backed by the International Monetary Fund (IMF) by an additional year through 2026.
Minister of Finance and National Planning Situmbeko Musokotwane said this decision is critical in reassuring lenders, investors and development partners that the country remains dedicated to fiscal responsibility and economic stability during this crucial period of recovery.
Speaking when he addressed the media yesterday, Dr Musokotwane emphasised that the extension of the IMF-supported economic reform programme will facilitate the maintenance of macroeconomic stability, a critical element in ensuring the country’s continued recovery from its debt crisis.
He underscored the importance of the extended programme in concluding Zambia’s ongoing debt restructuring process and reaffirming investor confidence in the country’s economy.
Dr Musokotwane also highlighted the broader implications of ending the IMF-supported programme, emphasising that Zambia could stand to lose crucial financial assistance from a variety of donor institutions if the programme is discontinued.
He stressed that organisations such as the World Bank, the African Development Bank, and the European Union have been essential partners in supporting Zambia’s economic recovery and development, and that without the continued commitment to the IMF programme, these sources of funding could be jeopardised.
The minister noted that the continued involvement of the fund would serve as a powerful signal to both domestic and international creditors that the country remains committed to responsible fiscal management and economic reforms.
Furthermore, Musokotwane revealed that the extension of the IMF backed programme would unlock an additional US$145 million in much-needed funding from the IMF, while also safeguarding over K4 billion in donor support that would otherwise have been lost for the 2026 national budget.
“While significant strides have been made in restructuring our external debt, Zambia is now facing increasing pressure from domestic debt instruments, such as treasury bills and bonds, which are rapidly approaching maturity,” he said.
“The continuation of this programme is therefore vital in ensuring that we can meet these obligations and avoid any destabilising effects on our economy.”
Last week, Cabinet resolved that the IMF programme will be extended for an extra one year from October 2025 to October 2026.
By Sharon Zulu
Kalemba August 5, 2025
