IMF Praises Zambia's Economic Reforms Under Extended Credit Facility

The International Monetary Fund (IMF) has praised Zambia for maintaining strong reform momentum and demonstrating economic resilience despite facing global and domestic challenges.

Following the Sixth Review under the Extended Credit Facility (ECF) Programme conducted in Lusaka from 22 October to 4 November 2025, the IMF highlighted significant improvements in inflation control, investor confidence, and private sector credit expansion.

Finance Minister Dr. Situmbeko Musokotwane reaffirmed the government's dedication to macroeconomic stability, fiscal consolidation, and inclusive growth. He emphasised that Zambia's progress under the ECF reflects successful reforms designed to stabilise the economy and enhance living standards.

Key resilience indicators include declining inflation, strong demand for government securities, and increased lending to agriculture, manufacturing, and energy sectors. Dr. Musokotwane stressed that economic stability, characterised by controlled inflation, stable exchange rates, and prudent fiscal management, is crucial for job creation and business confidence.

The government continues removing investment barriers and promoting competition to drive diversification and employment. Notable reforms include the open-access framework for the Tazama Pipeline, aimed at improving transparency and energy diversification.

Addressing the energy deficit remains a top priority for sustaining industrial growth and competitiveness.

Zambia's ECF arrangement, initially approved in August 2022 for $1.3 billion and augmented to $1.7 billion in July 2024, supports the Eighth National Development Plan's goals of strengthening governance, achieving debt sustainability, and promoting inclusive regional growth.