Zambia Looks To Re-engage IMF

Last week the International Monetary Fund (IMF) approved debt service relief for 25 member countries. However, Zambia was not on the list.

Commenting on the exclusion of Zambia from the list Andres Banda has laid blame at the door of the PF government stating, “The PF and its leadership must therefore take responsibility and admit failure. Here we are now IMF has refused to give Zambia debt relief when countries like Malawi and others have qualified for debt relief and yet 20 years ago Malawi was not anywhere near Zambia in terms of credibility, democracy wise.”

According to Banda the IMF has refused to give Zambia debt relief because of serious corruption and the failure to hold free and fair elections.

“This makes some of us extremely angry because majority of our citizens who are poor are the ones to feel the pressure. Zambians know who has caused all this mess and how it has been done,” he commented.

Since the IMF’s announcement Minister of Finance Bwalya Ng’andu has confirmed that Zambia intends to hold talks with the fund regarding an economic programme.

The IMF recently forecast a contraction of the economy by 3.5%, citing power shortages as a significant problem in addition to the current coronavirus pandemic.

“Zambia will now discuss with the fund on an appropriate macro-economic framework that will lead to a programme eventually,” the minister stated

Relations with the IMF have proved trouble under President Lungu’s government. A bailout had been under discussion, on and off, for more than five years, with the Government rejecting an initial proposal in 2015, before returning to the negotiating table. The President then challenged the IMF to leave the country if they felt he had gone beyond the norms of good governance and democracy following the declaration of a state of emergency in 2017. The fund subsequently withdrew its representative to Zambia in August 2018. The major stumbling block to a deal appears to be concerns regarding Zambia’s debt sustainability.