By Cecilia Chiluba/Zambia/Lusaka
Zambia has decided not to pursue a one-year extension of the current International Monetary Fund (IMF)–supported Extended Credit Facility (ECF) programme as earlier envisaged.
Instead, the Government intends to replace the ECF with a full successor programme that will run its complete course.
Minister of Finance and National Planning, Dr. Situmbeko Musokotwane stated that the decision follows the successful completion of the sixth and final review of the current ECF programme, which began in 2022.
In a statement issued in Lusaka, Dr. Musokotwane explained that Zambia’s decision should be understood as a natural transition after completing the current programme, rather than a shift away from engagement with the IMF.
He emphasized that the move should not be misconstrued as disengagement or a weakening of the Government’s commitment to reforms.
“After careful consideration and extensive consultations, the Government has decided to successfully conclude the ongoing sixth and final review of the current ECF arrangement. Immediately thereafter, the government shall engage with the IMF on a successor programme,” Dr. Musokotwane said.
According to the Minister, the successor programme will continue to address the conclusion of Zambia’s debt restructuring commitments to ensure the process is fully completed.
However, he noted that the new programme will also place emphasis on emerging economic priorities, particularly economic growth ambitions and broader medium-term development needs.
“At this stage, let me remind you that the current program started in 2022 and was expected to be concluded November 2025. It will now hopefully be concluded mid-January 2026. This brief extension from November to January was purely technical, intended to allow adequate time for the assessment of programme performance as of end-October,” he said.
Dr. Musokotwane further highlighted Zambia’s strong performance under the IMF-supported programme.
“I wish to underscore that Zambia has since 2022 successfully completed all reviews under the IMF-supported programme, and that a staff-level agreement on the sixth and final review was reached last month. That review is subject to consideration and approval by the IMF Executive Board, in line with established Fund procedures,” the Minister added.
He observed that Zambia’s solid track record — characterized by the consistent achievement of quantitative performance criteria and structural benchmarks — has contributed to macroeconomic stabilization, restored confidence, and strengthened fiscal discipline.
Dr. Musokotwane disclosed that Zambia’s primary fiscal surpluses have exceeded two percent of Gross Domestic Product (GDP), while economic growth is projected by the IMF to surpass five percent in 2025.
He assured stakeholders that during the transition period before a new programme is agreed, Government will remain firmly anchored to its reform agenda, adhere strictly to the approved national budget, and maintain close engagement with the IMF through Article IV consultations and continued technical dialogue.
The Minister added that Zambia will persist in implementing policies aimed at debt sustainability, fiscal consolidation, transparent resource management, and inclusive economic growth.
Government expects discussions on the successor IMF programme to commence immediately after the conclusion of the current ECF arrangement.
