The International Monetary Fund’s Executive Board completed the sixth and final review of Zambia’s 38-month Extended Credit Facility arrangement, enabling an immediate disbursement of SDR 138.9 million (about USD 190 million) and bringing total disbursements under the programme to SDR 1,271.66 million (about USD 1.7 billion). Programme performance was assessed as broadly satisfactory, with delays on structural conditionality. All end-June 2025 quantitative performance criteria and indicative targets were met except the performance criterion on net international reserves and the indicative target on spending arrears clearance, with the Board granting a waiver for the nonobservance of the net international reserves criterion. Eight of nineteen structural benchmarks were met, and a further six were completed with delays. Submission to Parliament of a revised Banking and Financial Services Act, described as broadly aligned with international standards, met the prior action for the review. The release also set out staff estimates and projections including real GDP growth of 5.2 percent in 2025 and 5.8 percent in 2026, inflation converging gradually toward the 6–8 percent target band by 2027, and an assessment that public debt is sustainable but remains at high risk of overall and external debt distress, alongside ongoing progress on external debt restructuring. With the arrangement now completed, the stated policy focus for 2026 is maintaining fiscal discipline and policy credibility, alongside continued reforms.

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