IMF Endorses Zambia's Economic Recovery and Eyes New Programme

The International Monetary Fund has confirmed that Zambia has made substantial progress in restoring macroeconomic stability, and said preliminary discussions on a successor lending arrangement could begin as early as April.

The assessment, published on 5th March, follows a week of high-level talks in Lusaka by an IMF staff team led by Mission Chief Edward Gemayel. The delegation met President Hakainde Hichilema, Finance Minister Dr. Situmbeko Musokotwane, and Bank of Zambia Governor Dr. Denny Kalyalya.

The Fund confirmed that public external debt has been largely restructured, international reserves have strengthened, and inflation has fallen within the Bank of Zambia's target band. Growth is projected at 5.5 percent for 2026.

Gemayel said the results reflected sustained reform efforts that had helped reinforce Zambia's credibility with creditors and market participants.

Zambia's authorities have expressed interest in a successor IMF programme, with initial technical discussions expected to begin in late April. Substantive policy negotiations, however, are unlikely before the general elections later this year.

A successor arrangement would deepen the institutional relationship that has underpinned Zambia's debt restructuring and recovery since 2021, and send a clear signal to international markets about the continuity of reform. The Fund's priorities for the next phase — strengthening the business climate, broadening the tax base, and supporting private sector-led growth — align closely with the government's own agenda.