LUSAKA, July 17 – Zambia is targeting a new International Monetary Fund (IMF) programme before the end of 2026 as the government seeks to accelerate investment, create jobs and consolidate its economic recovery following the country’s sovereign debt restructuring.
Finance Minister Situmbeko Musokotwane said the government hopes to reach an agreement with the IMF by year-end after the country’s previous $1.7 billion programme concluded in January, having played a central role in supporting Zambia’s debt restructuring efforts.
Speaking in an interview with Reuters, Musokotwane said the government is now focused on shifting from debt recovery to economic expansion.
According to Musokotwane, “Our wish is that certainly before the end of the year, we should have agreed with the Fund.”
He added that “We need to do more than just get out of the debt crisis. We need to attract investments now so that growth takes place and jobs are created.”
The proposed IMF programme is expected to prioritise investment in mining, energy and agriculture, sectors the government views as critical to boosting productivity, generating employment and supporting long-term economic growth.
Musokotwane also indicated that Zambia is not yet ready to return to international capital markets, saying it remains “too soon” for a new sovereign bond issuance. Instead, the government plans to strengthen its relationship with the IMF and rebuild investor confidence before seeking fresh financing through global debt markets.
Following an IMF staff mission to Lusaka between April and May, the Fund said discussions on a successor programme had made progress and are expected to continue after Zambia’s general election in August.
Despite improving macroeconomic conditions, the finance minister acknowledged several risks facing the economy, including higher fuel prices linked to tensions in the Middle East and the possibility of another drought, which could affect hydropower generation.
At the same time, he said rising global demand for copper and a new wave of mining investment would provide a significant boost to the country’s economic outlook.
According to Musokotwane, “Demand for metals including copper is going to give us a big surge in terms of growth in the coming few years.”
The government is projecting 6.4% economic growth this year, while the IMF has revised its 2026 growth forecast to 4.3%, citing weaker mining output, energy constraints, the normalisation of agricultural production following an exceptionally strong 2025 harvest and the economic impact of the Middle East conflict.
Looking beyond the August 13 general election, Musokotwane said improving domestic revenue mobilisation would remain a priority.
According to the finance minister, “We have to push hard on more tax revenue collection, not by imposing new taxes but by encouraging and pushing through higher efficiency.”
Since taking office in 2021, Musokotwane has overseen the restructuring of approximately $13 billion in external debt after Zambia became the first African country to default on its sovereign debt during the COVID-19 pandemic.
