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The International Monetary Fund (IMF) reached a staff-level agreement with Zambia on Friday for a new three-year Extended Credit Facility valued at approximately $1.5 billion.
Following a mission to Lusaka led by Edward Gemayel, the IMF designed the financial programme to preserve macroeconomic stability, build economic resilience, and drive national growth ambitions.
Pending Executive Board approval in December, the fund will release disbursements biannually over the next three years.
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The deal provides Zambia access to 1,076 million Special Drawing Rights as the government prepares its 2027 budget, which projects a seven per cent increase in public spending.
This new arrangement succeeds a $1.7 billion package that expired in January, which had helped the Southern African nation navigate a severe debt restructuring following its 2020 sovereign default.
Financial markets reacted positively to the announcement, with Zambia’s 2033 eurobond rising to 95.82 cents on the dollar.
While the IMF projects robust 5.6 per cent economic growth for Zambia in 2026—fuelled by strong agriculture, mining, and export performance—it warned that short-term fiscal vulnerabilities persist.
Tax collections fell below expectations, while emergency spending by the national Food Reserve Agency exceeded budgeted allocations.
The new programme aims to correct these fiscal slippages and reinforce long-term debt sustainability.
