The International Monetary Fund (IMF) has approved the final review of Zambia’s lending programme, clearing the way for the release of about 190 million dollars in funding.
The approval marks the sixth and final disbursement under the IMF’s Extended Credit Facility (ECF) arrangement with the southern African nation. Zambia initially sought 1.3 billion dollars in IMF support in 2022, a package that was later increased to 1.7 billion dollars to help the country avert a debt default and stabilise its economy.
Lusaka had earlier indicated it would seek a further loan extension of around 145 million dollars but later withdrew the request. The government said it would instead rely on domestic revenues, financial markets and support from other partners to cover any remaining funding gaps.
Zambia continues to grapple with double-digit inflation ahead of the general election scheduled for August.
Looking ahead, the government has projected an improved fiscal outlook in 2026, forecasting that the budget deficit will be cut by more than half and that economic growth will exceed six percent.
The IMF’s sixth and final review of Zambia’s ECF arrangement is expected to be formally considered by the Fund’s executive board by the end of this month.
