IMF gives Zambia $385 million for Drought Response

On 27 June, the International Monetary Fund granted Zambia an additional $385 million to the Extended Credit Facility (ECF) to provide financial aid the country after a six-month long drought.

This came after both Zambia and the IMF reached agreements following the latter’s third review of Zambia’s 38-month ECF, after which both the management and Executive Board of the IMF approved it as well. This agreement has resulted in a further approval of an augmentation of 293 million Special Drawing Rights.

The Zambian government are greatly appreciative of the IMF, as according to ZNBC Today’s Facebook account, Situmbeko Musokotwane, the Finance and National Planning Minister claims this is a ‘clear indication of the confidence that the IMF has in the strides Zambia is making’.

Now that the review stage has been completed, an immediate disbursement of around 589 million U.S. dollars can be expected. This will bring the disbursement under the ECF-supported program for Zambia to approximately $1.1 billion.

After facing the worst drought in the country in over 40 years, Zambia presented a K41.9 billion supplementary budget last week with the hope to support the predicted financing gaps.

The program brought by the IMF will provide support to the Eighth National Development Plan and has the aim of entrenching macroeconomic stability, attaining debt and fiscal stability, and improving the livelihood of Zambians.