Zambia will successfully conclude its current International Monetary Fund Extended Credit Facility programme and immediately begin discussions on a successor arrangement that prioritises economic growth, investment and job creation. Minister of Finance and National Planning Situmbeko Musokotwane confirmed the position in a statement issued in Lusaka as the country enters the final phase of the IMF supported programme that began in 2022.
The Minister clarified that Government has decided not to pursue a previously anticipated one year extension of the existing ECF. Instead, Zambia will transition to a new full term programme that better reflects the country’s evolving development priorities. He explained that this decision signals programme success and readiness to move into a new phase of cooperation with the Fund.
Dr Musokotwane said Government’s immediate focus is the completion of the sixth and final review of the current arrangement. Once that process is finalised, Zambia will formally engage the IMF on a successor programme. He noted that while the new framework will still support the completion of external debt restructuring, it will also address broader medium term needs with a strong emphasis on accelerating economic growth.
He stressed that the brief extension of the current programme from November 2025 to the end of January 2026 was technical in nature. The extension allows sufficient time to assess programme performance as at end October and should not be seen as a change in policy direction. Zambia, he said, remains fully engaged with the IMF and committed to reform.
Since 2022, Zambia has completed all programme reviews without interruption. A staff level agreement on the sixth and final review was reached last month and is now awaiting consideration by the IMF Executive Board. This consistent performance has strengthened Zambia’s credibility and restored confidence in economic management.
The Minister said Zambia’s results under the programme have been exceptionally strong. All key quantitative targets and structural benchmarks were met. Fiscal consolidation has been sustained, with primary fiscal surpluses exceeding 2 percent of GDP. Public financial management systems have improved, supporting macroeconomic stability and resilience to shocks.
He added that the reforms created an environment that allowed Zambia to benefit from favourable copper prices. Mining operations were revived and production capacity expanded. Without these reforms, higher prices alone would have delivered limited gains to the economy.
Looking ahead, Government is focused on translating stability into tangible economic opportunities. The successor IMF arrangement will prioritise growth oriented structural reforms, value addition, investment mobilisation and job creation. The goal is to expand productive capacity and ensure inclusive economic participation.
Dr Musokotwane assured stakeholders that policy continuity will be maintained during the transition period. Government will adhere strictly to the approved national budget, maintain disciplined borrowing and keep spending within Parliament approved limits. Engagement with the IMF will continue through Article IV consultations and ongoing technical discussions.
He reaffirmed Government’s commitment to debt sustainability, prudent fiscal management, transparent use of public resources and stronger domestic revenue mobilisation. He emphasised that the reforms are nationally owned and not dependent on any single external programme. Tangible gains are already visible in stability, growth prospects, social service delivery and investor confidence.
The Minister expressed appreciation to the IMF staff, management and Executive Board, as well as President Hakainde Hichilema, the Vice President, Cabinet, Parliament and key economic institutions for their support of the reform agenda. He said Zambia remains committed to constructive engagement with development partners as it advances towards a more prosperous, resilient and inclusive economy.