Zambia Completes IMF Programme, Sets Sights on Growth
Finance Minister announces successful completion of IMF arrangement as country transitions to development-focused agenda
Zambia has successfully completed all reviews under its International Monetary Fund (IMF) Extended Credit Facility (ECF) arrangement, demonstrating exceptional economic management that has restored macroeconomic stability and positioned the country for sustained growth, Finance Minister Dr. Situmbeko Musokotwane announced Thursday.
In a statement released from Lusaka, Dr. Musokotwane confirmed that the government has reached a staff-level agreement on the sixth and final review of the current ECF programme, which began in 2022. The announcement marks a significant milestone in Zambia's economic recovery journey.
Exemplary Programme Performance
Since the programme's inception, Zambia has consistently delivered on all key quantitative performance criteria and structural benchmarks without any suspension or break—a track record that compares favourably to many other countries and represents a marked improvement on Zambia's own historical performance.
The government has achieved primary fiscal surpluses exceeding 2 percent of GDP, demonstrating disciplined public financial management and a clear commitment to spending within available means while ensuring debt sustainability.
Tangible Economic Gains
The prudent fiscal management has delivered concrete results. The IMF projects economic growth to exceed 5 percent in 2025, while inflation is expected to return to the target range of 6–8 percent within the next two years—a significant achievement in stabilizing the cost of living for ordinary citizens.
The reforms have strengthened fiscal and external buffers, meaning Zambia's ability to respond to economic shocks has substantially improved. Foreign exchange reserves have increased, providing greater economic security.
Critically, the government's reforms have revived the mining sector, enabling Zambia to benefit from favourable global copper prices. "Had the reforms not included bringing back to life mining companies, the higher copper prices prevailing now would have meant very little because benefits only occur when there are minerals to sell," Dr. Musokotwane explained.
Strategic Transition to Growth
Rather than pursuing a one-year extension of the current ECF programme, the government has decided to transition to a full successor programme that addresses evolving economic priorities, particularly economic growth ambitions and medium-term development needs.
"The decision should be understood as a reflection of programme completion of the current one and transiting on to a successor program. The decision should not be misunderstood to mean disengagement or any weakening of reform commitment," the Finance Minister clarified.
The new programme will continue to encompass completion of Zambia's debt restructuring commitments while shifting emphasis towards growth-oriented structural reforms, investment mobilization, and expansion of inclusive economic opportunities.
Policy Continuity Guaranteed
Dr. Musokotwane provided clear assurance that during the transition period, the government will remain firmly anchored to its reform path through strict adherence to the approved national budget, with expenditure execution and borrowing implemented within Parliament-approved ceilings.
The government remains fully committed to maintaining debt sustainability through disciplined borrowing, advancing fiscal consolidation, upholding prudent resource management, and promoting inclusive economic growth that creates jobs and improves livelihoods for all Zambians.
National Ownership of Reforms
Emphasizing that the reforms reflect national ownership rather than external conditionality, Dr. Musokotwane highlighted the visible benefits already accruing to Zambians: "Economic stability, economic growth, free education, expanding infrastructure, increase in foreign exchange reserves, more investments, addition to jobs, are all examples of fruits from the changes or reforms undertaken during the past four years."
Dr. Musokotwane thanked President Hichilema and Vice President Nalumango for their active leadership, Cabinet and Parliament for their support, and the people of Zambia for enabling this success.
"We look forward to continuing constructive engagement with the IMF and all other development partners as we advance our shared objective of a prosperous, resilient, and inclusive Zambia," Dr. Musokotwane concluded.