Zambia is aiming to reach an agreement with the International Monetary Fund (IMF) on a new economic support programme before the end of 2026, Finance Minister Situmbeko Musokotwane has said, as the country seeks to build on recent economic reforms and sustain its recovery.
According to Musokotwane, discussions with the IMF are progressing well, although formal negotiations are expected to accelerate after Zambia’s general elections in August. He expressed confidence that both sides would be able to conclude talks before year-end on a successor programme to the country’s recently completed Extended Credit Facility (ECF).
The proposed programme is expected to help Zambia preserve macroeconomic stability, strengthen public finances, attract investment and support reforms aimed at boosting private sector-led growth. The IMF has acknowledged Zambia’s progress in reducing inflation, rebuilding foreign exchange reserves and advancing debt restructuring, while noting that fiscal discipline remains essential amid rising spending pressures.
Zambia successfully completed its $1.7 billion IMF-backed Extended Credit Facility in January 2026, following six programme reviews that supported the country’s efforts to recover from its 2020 sovereign debt default. The government has since opted to pursue a fresh IMF arrangement rather than extend the previous programme, saying a new agreement would better reflect the country’s current economic priorities.
If approved, the new programme is expected to reinforce investor confidence, support continued fiscal reforms and help Zambia maintain economic stability while protecting social spending and promoting sustainable growth.
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