The International Monetary Fund released the press materials and staff report for Zambia’s sixth review under its Extended Credit Facility (ECF) arrangement, alongside a request for a waiver of nonobservance of a quantitative performance criterion and a financing assurances review. The report credits Zambia with correcting macroeconomic imbalances, advancing external debt restructuring agreements for most debt within the restructuring perimeter, and maintaining fiscal consolidation while safeguarding social spending. Economic activity expanded in 2025 but at a slower pace than initially expected. Inflation has been trending down following a sharp appreciation of the kwacha but remains elevated, while the reform programme under the ECF is linked to improved international investor confidence, including recent sovereign credit rating upgrades; poverty and inequality remain high and the outlook is described as vulnerable to external shocks, climate events and domestic political pressures ahead of the 2026 elections.
International Monetary Fund 2026-02-02
International Monetary Fund publishes Zambia sixth Extended Credit Facility review covering waiver request and financing assurances
The International Monetary Fund released materials for Zambia’s sixth review under its Extended Credit Facility, noting macroeconomic corrections, debt restructuring progress, and fiscal consolidation. Despite slower-than-expected economic growth in 2025 and high inflation, investor confidence has improved, though poverty, inequality, and vulnerability to external shocks remain concerns.