World Bank, IMF Praise Zambia’s Economic Reforms

The World Bank and International Monetary Fund (IMF) have praised the Zambian government for its efforts to tackle the country’s debt situation and lay a foundation for sustainable economic growth. 

Over the weekend, World Bank Group President David Malpass said he was impressed with Zambia’s progress in implementing fiscal and structural reforms and for improving public service delivery in health and education. He highlighted the government’s recruitment of an additional 30,000 teachers and 11,276 healthcare workers as positive steps to improving service delivery. 

Mr Malpass’s comments came at a meeting with Minister of Finance Situmbeko Musokotwane as part of the World Bank and IMF’s Spring Meetings in Washington, D.C.

On Monday, the IMF’s Managing Director Kristalina Georgieva also met with Mr Musokotwane, as well as Bank of Zambia Governor Denny Kalyalya. She described their discussions as an “excellent meeting” and praised the government on Twitter for its “impressive progress underway on important economic reforms.”

She also tweeted that the IMF shared Zambia’s hopes for rapid progress on debt restructuring so that the lender can consider the government’s program for a full deal as promised in the October budget. 

The praise followed news that China, which holds almost a third of Zambia’s foreign debts, would be joining Zambia’s creditor council to help negotiate a debt resolution package.    

Reacting to China’s decision, President Hakainde Hichilema tweeted, “We engaged with China & other creditors to negotiate a debt resolution package. Thank you #China for joining the Common Framework. This couldn’t be done in 10 years, we have done it in 8 months! #Zambia”

Obtaining a debt resolution package is critical to the New Dawn government’s plans for economic reform. By restructuring Zambia’s debts, the government can spend less money servicing its creditors and leave open more funding for social projects.