LUSAKA, Jan 28 – The International Monetary Fund’s executive board has approved the sixth and final review of Zambia’s Extended Credit Facility programme, clearing the way for a $190 million disbursement and formally bringing the lending arrangement to a close.
Zambia entered the IMF programme in 2022 with an initial financing package of $1.3 billion as it worked to stabilise the economy following a sovereign debt default. The facility was later expanded to $1.7 billion, providing balance of payments support and anchoring fiscal and structural reforms.
Despite facing external shocks and domestic pressures, the IMF said Zambia made meaningful progress under the programme. Nigel Clarke, the Fund’s deputy managing director, said the country had significantly reduced macroeconomic imbalances, advanced debt restructuring negotiations, and delivered sustained fiscal consolidation while protecting social spending.
The approval comes after the Zambian authorities decided not to pursue a one year extension of the programme, reversing an earlier plan to seek additional IMF support. The government did not provide a public explanation for the change in course. An extension could have unlocked an estimated $145 million in extra funding.
Zambia’s programme exit coincides with an election year, with President Hakainde Hichilema set to seek reelection in August. The conclusion of the IMF arrangement places greater emphasis on domestic policy discipline and continued reform momentum as the country transitions away from Fund support.
The IMF has consistently highlighted Zambia’s debt restructuring progress as a cornerstone of its recovery, though the sustainability of gains will depend on continued fiscal restraint, external financing conditions, and investor confidence in the post programme environment.
