IMF
IMF IN ZAMBIA KEY FIGURES
| ECF Arrangement | Programme Length | Total Disbursed | Reviews Completed |
|---|---|---|---|
| 2022-2026 | 38 months | ~USD 1.7 billion | 6 of 6 |
The IMF Executive Board completed the sixth and final review of Zambia’s 38-month Extended Credit Facility arrangement in January 2026, approving a disbursement of approximately USD 190 million and bringing total disbursements under the programme to about USD 1.7 billion.
Zambia’s government has decided not to seek a one-year extension of the programme and instead intends to negotiate a full successor arrangement with the IMF, one that would continue addressing the completion of Zambia’s debt restructuring commitments while also incorporating the country’s growth ambitions, with talks expected to resume with the incoming government following the August 2026 elections.
The Extended Credit Facility Arrangement, 2022-2026
The IMF reached a staff-level agreement with Zambia in December 2021 on a new Extended Credit Facility arrangement worth about SDR 980 million, or roughly USD 1.4 billion, which the Executive Board formally approved in August 2022 to support the government’s economic recovery programme[4]. Zambia’s Minister of Finance and National Planning, Situmbeko Musokotwane, said the country completed every review under the programme since 2022 without a break or suspension, an implementation record he described as exceptional compared with both other countries and Zambia’s own history[1]. The programme was originally expected to conclude in November 2025, and was given a short technical extension to allow time to assess performance as of end-October before concluding in mid-January 2026[1].
Sixth and Final Review
The IMF Executive Board completed the sixth and final review of the arrangement in January 2026, approving a disbursement of approximately USD 190 million and bringing total disbursements under the programme to about USD 1.7 billion[2]. Under the programme, Zambia achieved primary fiscal surpluses exceeding 2% of GDP, which the Minister credited with underpinning macroeconomic stabilisation[1]. A May 2025 supplementary review found the economy growing 4.5% year on year in the first quarter of 2025 on strong agriculture and mining performance, with inflation easing to 14.1% year on year in June 2025 as the harvest eased food prices, and recorded an amended 2025 budget, adopted July 17, 2025, carrying 0.5% of GDP in revenue measures and spending reprioritization to offset higher interest payments on restructured debt, sustained social cash transfer support, and other unanticipated needs[3].
Toward a Successor Programme
Rather than extend the concluded arrangement by a further year as earlier envisaged, Zambia’s government decided to move directly to negotiating a full successor programme with the IMF[1]. That successor programme is expected to continue addressing the completion of Zambia’s debt restructuring commitments while also incorporating the country’s evolving economic priorities, particularly growth ambitions and medium-term development needs, with negotiations expected to resume with the incoming government following Zambia’s August 2026 elections[1].
Debt Sustainability Assessment
The IMF’s debt sustainability analysis uses a composite indicator derived in part from the World Bank’s Country Policy and Institutional Assessment; the 2025 CPIA update raised that composite indicator only marginally, to 2.59, still below the 2.69 threshold for a medium debt-carrying-capacity classification[3].
Investment Opportunities
The completion of all six reviews without interruption, and the government’s stated intent to move directly into a growth-oriented successor programme rather than pause for a technical extension, both signal continuity in the macroeconomic policy framework that has underpinned Zambia’s fiscal consolidation and debt restructuring since 2022, a continuity relevant to anyone assessing sovereign risk or the durability of current reforms[1]. The successor programme’s stated shift toward growth ambitions and medium-term development needs, rather than debt restructuring alone, also points to where the next phase of IMF-related policy conditionality and support is likely to be directed[1].
Last Update: September 2026
References
- Ministry of Finance and National Planning, From Stabilisation to Expansion: Government Signals Aspiration for a New-IMF Supported, Investment-Focused Growth Phase
- International Monetary Fund, Zambia: IMF Executive Board Completes Sixth Review Under the Extended Credit Facility, January 2026
- International Monetary Fund, Zambia: Staff Report for the 2025 Article IV Consultation, Fifth Review Under the Extended Credit Facility Arrangement, and Financing Assurances Review, Supplementary Information, July 2025
- International Monetary Fund, Zambia: IMF Staff Reaches Staff-Level Agreement on a New Extended Credit Facility Arrangement, December 2021
