A The International Monetary Fund (IMF) has approved the sixth and final review of Zambia’s Extended Credit Facility (ECF), unlocking about US$190 million in funds to support the country’s economic stabilisation and reform efforts. The decision marks the completion of the 38-month financing programme that has helped Lusaka manage macroeconomic imbalances and strengthen fiscal resilience.
The ECF arrangement, originally agreed in August 2022, has provided critical support as Zambia sought to recover from a 2020 debt default and restore stability to its economy. The total disbursements under the programme now amount to roughly SDR 1.27 billion (about US$1.7 billion) following the final review.
IMF officials said Zambia met most of the programme’s performance benchmarks despite external and domestic shocks, including completing reforms to its Banking and Financial Services Act and maintaining prudent fiscal discipline while safeguarding key social spending. The Executive Board also granted a waiver for a performance criterion related to international reserves.
The immediate release of the US$190 million is expected to bolster Zambia’s foreign exchange holdings and support ongoing economic reform measures. The programme’s completion underscores progress in debt restructuring, fiscal consolidation and efforts to enhance Zambia’s economic growth prospects in the lead-up to national elections scheduled for August 2026.
Analysts say the IMF backing coupled with improvements in sectors such as mining and agriculture — strengthens Zambia’s macroeconomic framework, though continued policy discipline will be essential to sustain gains and support inclusive growth.
