Zambia and IMF agree on a $194 Million Boost

Zambia has reached a staff-level agreement with the International Monetary Fund (IMF) for an additional $194 million in financing under the Extended Credit Facility (ECF). The agreement follows a visit by IMF Mission Chief Mercedes Vera-Martin, who led a team to Zambia from 29 April to 13 May 2025.

During the meeting, the IMF team highlighted that Zambia’s economy had proved to be resilient despite the 2024 drought, and that economic growth projection for 2025 is high, currently forecasted at 5.8%.

However, the disbursement of funds remains contingent on Zambia meeting key economic policies and reforms, and receiving final approval from the IMF management and Executive Board.

The IMF urged the government to intensify domestic revenue mobilisation and maintain firm fiscal discipline to consolidate recent gains in debt and fiscal sustainability. Accelerating structural reforms was also recommended, with IMF emphasising that faster implementation is essential for fostering inclusive and broad-based growth. Sustaining these reforms, they added, is critical to strengthening Zambia’s domestic reform agenda.

This latest agreement signals growing international confidence in Zambia’s economic trajectory and reform efforts.