The International Monetary Fund (IMF) concluded its Sixth Review Mission under the Extended Credit Facility (ECF) with Zambia, highlighting GDP growth of 4.5% in the first half of 2025 and easing inflation driven by lower food and fuel prices and a stronger exchange rate.
An IMF mission led by Ms. Mercedes Vera Martin visited Lusaka from October 22 to November 4, 2025, to review recent economic developments and policy priorities under the ECF arrangement.
The IMF said Zambia’s economy continues to show resilience despite last year’s drought, supported by a record maize harvest and higher mining output.
Real GDP growth reached 3.8% in 2024 and is projected to rise to 5.2% in 2026.
Liquidity conditions have improved, investor demand for government securities remains strong, and private sector credit continues to support the manufacturing, agriculture, and energy sectors.
Preliminary data show a current account deficit of 2.0% of GDP in the first half of 2025, reflecting lower official grants and a broad-based increase in imports.
Ms. Vera Martin stated that “the IMF team held constructive and productive discussions with the Zambian authorities on recent economic developments and policy measures needed to advance reforms under the ECF-supported program.”
She added that the authorities are progressing with legislative reforms to strengthen financial sector supervision, governance of state-owned enterprises, and the anti-corruption framework.
Discussions also focused on reforms to improve private sector participation in agriculture and the implementation of the open-access framework for the Tanzania-Zambia (TAZAMA) pipeline.
The IMF emphasized the importance of sustaining fiscal consolidation efforts and maintaining reform momentum to preserve macroeconomic stability, rebuild buffers, and ensure that the benefits of renewed stability reach all Zambians.
The mission met with Finance Minister Dr. Situmbeko Musokotwane, Bank of Zambia Governor Dr. Denny Kalyalya, Secretary to the Treasury Mr. Felix Nkulukusa, Deputy Governor Dr. Francis Chipimo, and representatives from the private sector, civil society, and development partners.
Extended Credit Facility in Zambia
The Extended Credit Facility is the IMF’s main instrument for medium-term financial support to countries facing balance-of-payments challenges.
Zambia’s ECF arrangement, approved in August 2022, seeks to restore fiscal and debt sustainability while fostering inclusive growth and macroeconomic stability.
The program supports ongoing reforms to strengthen public financial management, improve governance, and enhance private sector participation in the economy.
