IMF and Zambia reach agreement on new USD 1.47 billion programme

The International Monetary Fund (IMF) and the Zambian Government have reached a staff-level agreement on a new 36-month Extended Credit Facility worth USD 1.47 billion. The deal is subject to approval by the IMF Executive Board.

The agreement follows an IMF mission to Lusaka from 29 September to 9 October, led by Mission Chief Edward Gemayel, who met President Hakainde Hichilema, Finance Minister Situmbeko Musokotwane and Bank of Zambia Governor Denny Kalyalya.

The new programme will support Zambia’s budget and balance of payments needs, safeguard economic stability and debt sustainability, and advance stronger, private-sector-led growth.

Mr Gemayel said Zambia enters the programme “from a position of strength” following the successful completion of its previous IMF programme. The economy is projected to grow by 5.6% in 2026, driven by strong agriculture, mining and exports. Inflation has fallen to 6.1%, within the Bank of Zambia’s target range, and gross international reserves reached USD 6.1 billion in September.

The IMF noted that revenue fell short this year while spending rose, and welcomed the Government’s corrective measures. From 2027, the programme will focus on boosting domestic revenue, improving tax administration and strengthening debt management, while protecting priority social spending.

Building on the Grow Zambia Agenda, reforms will also focus on creating better jobs and higher incomes, strengthening governance and anti-corruption institutions, and improving transparency in mining licensing.

“The Fund looks forward to continuing its close partnership with Zambia in support of macroeconomic stability, debt sustainability, and inclusive growth,” Mr Gemayel said.