Zambia has reached the final stage of its financial assistance arrangement with the International Monetary Fund after the lender approved the closing review of the program. The decision allows the release of 190 million dollars and formally concludes the IMF-backed effort aimed at stabilizing the country’s economy.
The approval marks the end of a multi-year engagement that began as Zambia faced mounting debt pressures and the risk of default.
Conclusion of a Multi-Year IMF Program
The newly released funds represent the sixth and final disbursement under the IMF’s Extended Credit Facility for Zambia. The program was launched after the government sought international support in 2022 to address severe fiscal imbalances and restore macroeconomic stability.
Originally set at 1.3 billion dollars, the overall financing package was later expanded to 1.7 billion dollars as economic conditions worsened. Although Zambia had considered extending the arrangement further, officials ultimately decided to withdraw the request for additional IMF funding.
Financing Strategy Shifts After IMF Exit
With the IMF program now complete, authorities say future financing needs will be covered through domestic revenue collection, local capital markets, and partnerships with other lenders. This transition comes as the country faces elevated inflation levels ahead of national elections scheduled for August.
Officials acknowledge that tighter financial conditions remain a challenge, but argue that reliance on internal resources will strengthen long-term economic independence.
Government Forecast Signals Recovery
Looking ahead, the government has outlined a more optimistic outlook for 2026. Projections indicate that the budget deficit could be reduced by more than half, while economic growth is expected to surpass six percent.
The completion of the IMF program is being presented as a milestone in Zambia’s recovery process. Analysts note, however, that sustaining momentum will depend on maintaining fiscal discipline, controlling inflation, and delivering reforms beyond the program’s conclusion.
