By Cecilia Chiluba /Zambia/Lusaka
Zambia and the International Monetary Fund (IMF) have reached a Staff-Level Agreement to complete the Sixth and Final Review under the country’s Extended Credit Facility (ECF) arrangement.
Subject to approval by the IMF Executive Board, the agreement will unlock a final disbursement of SDR 139.9 million, equivalent to about US$190 million, bringing total IMF support to approximately SDR 1.27 billion, or about US$1.7 billion, since August 2022.
The milestone confirms that Zambia has stayed firmly on course under its IMF programme, even in the face of domestic and global shocks, and that the reform path chosen by the country is delivering measurable, credible and increasingly visible results for citizens, businesses and investors.
Announcing the agreement, IMF Mission Chief for Zambia, Ms. Mercedes Vera Martin, said the Fund was encouraged by Zambia’s progress and resilience.
“Despite external and domestic shocks during the program period, Zambia has significantly reduced macroeconomic imbalances, undertaken sustained fiscal consolidation while safeguarding social spending, and rebuilt buffers that have improved resilience to shocks,” Ms. Martin said.
Reacting to the development, Minister of Finance and National Planning Dr. Situmbeko Musokotwane said the Staff-Level Agreement was both an affirmation of discipline and a signal of renewed opportunity.
“This agreement is not just a technical milestone with the IMF. It is confirmation that the difficult reforms undertaken by the Zambian people are working, that stability is being restored, and that our economy is once again becoming predictable and investable.”
“I commend President, Hakainde Hichilema, Cabinet, the private sector, our cooperating partners, and above all the Zambian people for the resilience and trust they have shown throughout this reform journey,” he added.
The IMF Staff-Level Agreement is reinforced by recent sovereign credit rating upgrades by Standard & Poor’s and Fitch Ratings, which have returned Zambia to the B-category with Stable Outlooks.
Dr. Musokotwane stated that together, the IMF programme, the 2026 National Budget and independent validation by rating agencies provide coherent assurance that Zambia’s reforms are durable, credible and positively transformative.
He explained that the alignment between IMF commitments, budget policy and external assessments was deliberate.
“Policy credibility is built through consistency. The 2026 Budget, which commences shortly, will translate these commitments into concrete action that supports growth, protects the vulnerable and enables private sector-led job creation,” he said.
The IMF has recognized that Zambia has reduced macroeconomic imbalances, strengthened fiscal performance and rebuilt international reserves, which now stand at about US$5.2 billion, equivalent to roughly five months of prospective import cover.
According to the Fund, inflationary pressures, while easing gradually, are being supported by a stronger kwacha, lower fuel prices and improved food supply.
“These developments are translating into greater stability in prices, the exchange rate and the overall business environment,” the Fund observed.
Looking ahead, the IMF’s medium-term assessment reinforces Zambia’s growth narrative.
Growth is projected to average 5.6 percent between 2026 and 2031, underpinned by investment, agriculture, energy reforms and expanding copper output. Inflation is expected to converge toward the 6–8 percent target band by 2027, while the current account is projected to return to surplus from 2026 as exports strengthen.
