IMF Approves Fifth Review of Zambia’s Credit Program, Unlocking $184 Million Disbursement
The International Monetary Fund (IMF) Executive Board has completed the fifth review of Zambia’s 38-month Extended Credit Facility (ECF), approving an immediate disbursement of SDR 139.88 million (approximately US$184 million).
This brings the total disbursements under the program to SDR 1.13 billion (around US$1.55 billion).
Launched in August 2022, the ECF-supported program is designed to help Zambia restore macroeconomic stability, ensure debt sustainability, and foster inclusive economic growth.
The IMF described Zambia’s progress under the program as “broadly satisfactory,” noting that all quantitative targets for end-2024 and most for end-March 2025 have been met.
Despite missing three indicative targets—related to non-mining tax revenue, arrears clearance, and international reserves—Zambia successfully achieved six of the 14 structural benchmarks, with four others completed after delays. The remaining four have been rescheduled for the next review.
The IMF also granted a waiver for a breach of the continuous performance criterion on non-concessional debt contracted in the fourth quarter of 2024.
Additionally, the adoption of the amended 2025 national budget fulfilled a prior action required for the current disbursement.
Zambia’s economic recovery is gaining momentum following the impact of a severe drought in early 2024.
Real GDP growth is projected at 4% for 2024 and is expected to accelerate to 5.8% in 2025, supported by renewed activity in the agriculture, mining, and service sectors. Inflation is forecast to decline to 11% by the end of 2025.
The IMF emphasized the need to scale up investment in the mining sector, uphold fiscal discipline, and accelerate governance and structural reforms—particularly in energy, anti-corruption efforts, and agriculture—to build resilience and support sustainable development.
While Zambia remains at high risk of debt distress in the short term, its public debt is considered sustainable.
Medium-term economic prospects are expected to improve as the government advances negotiations with bilateral and commercial creditors to finalize debt restructuring agreements.
In a statement, IMF First Deputy Managing Director Gita Gopinath praised Zambia’s economic efforts. “Agricultural, mining, and services activity has rebounded strongly.
Program performance remains broadly satisfactory,” she said. “Continued governance and structural reforms are essential to foster private sector development, diversify the economy, and support inclusive growth.”
The IMF staff report for this review will be published on the IMF website, pending consent from the Zambian authorities.
