THE International Monetary Fund (IMF) has released US$184 million to Zambia following a successful review of the country’s economic reform programme, bringing the total support under the three-year Extended Credit Facility (ECF) to US$1.55 billion.
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The IMF says Zambia has made steady progress in implementing economic reforms, even in the face of challenges such as the last year’s drought that affected agriculture and electricity production.
According to the Ministry of Finance and National Planning, Zambia’s economy is now expected to grow by 4 percent this year, with growth accelerating to 5.8 percent in 2026 as agriculture, mining and service industries bounce back.
Inflation, which has been chewing into household incomes, is projected to ease to 11 percent by the end of next year.
The IMF credited Zambia’s recovery to strong fiscal policies, better control of public spending, and a clear focus on supporting sectors that generate jobs and growth.
Despite these gains, the IMF pointed out that Zambia’s debt levels remain high and some reforms are lagging behind schedule.
However, the government is said to be engaging creditors on payment plans and working to accelerate pending reforms.
“Although Zambia is at a high risk of debt distress because of near-term breaches of the DSA (debt sustainability analysis) thresholds, it is expected to reach a moderate risk of external debt distress over the medium term,” the Ministry said in a statement.
The IMF has advised Zambia to stay on course with its reform agenda by strengthening fiscal management, promoting inclusive growth, improving public sector transparency, and investing in climate resilience and agricultural transformation.
By George Musonda
Picture for illustration
Kalemba July 26, 2025
