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IMF pumps US$184M into Zambia …with the Washington lender saying Zambia’s economy is proving more resilient than expected, crediting sound economic policies for a stronger-than-expected recovery following the drought. By BUUMBA CHIMBULU ZAMBIA has secured another major financial boost from the International Monetary Fund (IMF), receiving US$184 million following the successful fifth review of its Extended Credit Facility (ECF) programme. This fresh disbursement announced in a statement brings total IMF support under the 38-month programme to over US$1.55 billion since it commenced in August 2022. The ECF is aimed at stabilising the economy, reducing debt, enhancing governance and promoting inclusive growth. The IMF noted that the country’s progress has been broadly satisfactory, with the government meeting all targets for December 2024 and most for March 2025. However, challenges persist in non-mining tax revenue collection, arrears clearance and foreign reserve accumulation. While some reform deadlines – notably in debt management and governance – were missed, the IMF has granted extensions to allow for their completion. According to the IMF, the country’s economy is recovering strongly from the impact of the 2024 drought. Growth for this year is projected at four percent, driven by a rebound in mining and services, while 2025 growth is forecast at 5.8 percent, buoyed by a robust agricultural recovery and sustained mining output. Inflation, which remains elevated, is expected to ease to around 11 percent by the end of this year. Despite improvements, the country’s public debt remains high, though it is now assessed as sustainable. It remains at high risk of debt distress, but is expected to shift to a moderate risk level in the medium term as restructuring progresses. IMF First Deputy Managing Director Gita Gopinath commended the country’s resilience, crediting sound economic policies for a stronger-than-expected recovery following the drought. “Mining, agriculture, and services are bouncing back, and inflation is starting to decline,” Ms Gopinath stated. She called on Government to maintain fiscal discipline, advance governance and anti-corruption reforms, and strengthen climate resilience to sustain long-term growth. Agreements have been reached with the majority of external commercial creditors, and discussions are ongoing with official bilateral lenders, aligning with IMF programme parameters. Commenting on the announcement, Finance and National Planning Minister Dr Situmbeko Musokotwane, said Government will continue to focus on domestic revenue mobilisation, prudent public finance management and social development. Dr Musokotwane added that Government will remain fully committed to implementing reforms in the energy sector in order to reduce inefficiencies and facilitate further economic growth. “We are pleased that the IMF Executive Board has approved the review and continues to recognise the progress Zambia is making. This is a testament to our steadfast commitment to boosting our economy, bringing our finances in order, and delivering better opportunities for our people “Our currency, the Kwacha, has been showing its strongest performance since 2021. Our growth of four percent in 2024 has surpassed expectations and growth in 2025 is projected to outperform global projections despite global macro-financial instability. We are investing in human capital and building roads, infrastructure, schools and hospitals. All of these efforts will yield results over time,” he said. Ends.

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