IMF Backs HH Reforms With Further $184 Million

The International Monetary Fund (IMF) has endorsed President Hakainde Hichilema’s economic reforms, granting Zambia a further $184 million.

The fund said the loan would “entrench macroeconomic stability, restore debt and fiscal sustainability, enhance public governance, and foster inclusive growth for Zambia.” It is the fifth tranche of a total $1.3 billion loan from the IMF which is intended to bolster Zambia’s long-term economic resilience and improve living standards.

The disbursement is a massive vote of confidence for the economic reforms carried out by the New Dawn government, including restructuring most of the $12 billion of external debt that the previous administration had defaulted on.  

The economy is now on the right track, with the Ministry of Finance predicting 5.8% growth this year and 6.4% in 2026.

This growth will result in more jobs and greater tax revenue, which the government can then spend on schools, hospitals, roads, and CDF.

The $184 million will help with recovery from last year’s drought, funding initiatives like crop irrigation and solar panels to improve energy resilience.

Meanwhile analysts are predicting that US President Donald Trump’s 50% tariff on copper will not have much impact on Zambia’s economy as the country’s exports to the US are limited and the volatility in copper prices is expected to be temporary.