The Government of Zambia has begun discussions with the International Monetary Fund on a successor programme under the Extended Credit Facility, with a stronger focus on economic growth, investment, exports, diversification and job creation. The discussions follow the completion of Zambia’s previous IMF-supported programme and come as the government seeks to move from macroeconomic stabilisation toward broader economic expansion. The new programme is expected to preserve gains in fiscal and macroeconomic stability while supporting private-sector investment and productive activity. IMF Mission Chief Edward Gemayel is leading the current engagement, which is scheduled to continue through October 10, 2026. The talks also provide an opportunity for Zambia and the IMF to consider how future economic policies can support the Grow Zambia Agenda while maintaining debt sustainability.
The current IMF engagement builds on the 38-month Extended Credit Facility arrangement that Zambia completed in January 2026. The IMF Executive Board completed the sixth and final review on January 27, 2026, allowing a final disbursement of SDR 138.9 million, bringing total disbursements under the arrangement to SDR 1,271.66 million, or about US$1.7 billion. The original programme was approved on August 31, 2022, with access of SDR 978.2 million, and was later augmented by SDR 293.46 million in June 2024. The completed programme focused on restoring macroeconomic stability, strengthening economic resilience and supporting sustainable and inclusive growth. The proposed successor programme represents a new stage of engagement rather than an extension of the completed arrangement.
The latest IMF discussions opened with a meeting between Edward Gemayel, Finance and National Planning Minister Dr. Situmbeko Musokotwane and senior officials from the ministry in Lusaka. The mission is expected to hold further discussions with the Ministry of Finance and National Planning, the Bank of Zambia, the Zambia Revenue Authority and other relevant public institutions. The talks will cover economic and structural policies that could form the foundation of the proposed successor programme. They are also expected to include discussions around Zambia’s 2027 National Budget and the 2027 to 2029 Medium-Term Budget Plan. These discussions are important because budget decisions will influence how the government balances fiscal discipline with its ambitions for investment, growth and employment.
The proposed successor programme is expected to maintain attention on macroeconomic stability and debt sustainability while giving greater weight to sustainable and inclusive growth. The IMF has previously said that Zambia made substantial progress in restoring macroeconomic stability under the completed ECF arrangement. In May 2026, the IMF said priorities for a successor arrangement included more inclusive and private-sector-led growth, economic diversification and higher productivity. The IMF also identified areas such as copper value addition, energy supply, agribusiness, tourism and textiles as potential avenues for domestic value addition and job creation. These priorities show the potential shift from an emphasis mainly on stabilisation toward policies that also support productive investment and economic expansion.
Dr. Musokotwane has outlined a similar direction for Zambia’s economic policy over the next five years. He said the government intends to maintain fiscal and macroeconomic stability while placing greater emphasis on growth, investment and employment. This approach reflects the need to protect the stability achieved through recent reforms while creating conditions for businesses to expand and investors to commit capital. The minister has also highlighted employment as a major challenge, particularly for young people. Stronger investment and sustained economic growth are therefore central to the government’s efforts to expand employment opportunities and improve household incomes.
Investment is expected to play a central role in the proposed economic strategy. The government has indicated that it wants to combine supportive policies with direct engagement with investors to communicate Zambia’s economic opportunities. Foreign direct investment can bring capital, technology, management expertise and access to international markets, although the specific benefits depend on the structure and quality of individual investments. The government has therefore placed FDI among the key areas of its broader growth strategy. Creating a regulatory environment that allows both foreign and domestic businesses to establish, expand and compete will be an important part of that effort.
Export-led growth is another major element of the government’s proposed strategy. Zambia has a relatively small domestic market, making access to larger international markets important for businesses seeking to expand production. Export growth can generate foreign exchange earnings and create demand for goods and services produced within the country. The government has pointed to the experience of economies such as Germany, Japan and countries in Southeast Asia when discussing the importance of exports in economic transformation. For Zambia, the challenge will be to expand the range and value of exports while increasing domestic value addition and reducing excessive dependence on a limited number of commodities.
Copper remains a major part of Zambia’s export economy, which makes diversification an important policy objective. Increasing value addition within the country could allow Zambia to capture more economic activity from its natural resources rather than relying mainly on the export of raw materials. The IMF has also identified copper value addition as an area that could support domestic economic activity and employment. Diversification can extend beyond mining into sectors such as agriculture, tourism, textiles and other areas with potential for production and exports. The proposed successor programme is therefore expected to consider policies that can support a broader and more resilient productive base.
Human capital development forms another pillar of the government’s proposed growth strategy. Dr. Musokotwane has said that Zambia’s skills policy should extend beyond university qualifications and address occupational skills needed across the economy. This includes machine artisans, operators, plumbers, mechanics, technicians and other professionals required by industry. Expanding these skills can help address gaps between the needs of employers and the qualifications available in the labour market. Continued investment in education and practical training will therefore be important if Zambia wants its economic growth strategy to generate employment and improve productivity.
The regulatory and governance environment is also expected to feature prominently in discussions with the IMF. Businesses need clear and predictable rules to make investment decisions, establish operations and expand their activities. A stronger regulatory environment can also help domestic businesses compete while providing greater confidence to international investors. Governance reforms and transparency have remained important parts of the IMF’s engagement with Zambia, particularly because they can affect the cost and availability of private investment. The proposed successor programme is therefore likely to consider how economic policies and institutional reforms can work together to support investment and sustainable growth.
The discussions also come against the background of Zambia’s ongoing efforts to manage public debt. Debt sustainability remains an important objective for both the Zambian government and the IMF as the country moves into a new phase of economic policy. The completed ECF arrangement contributed to a broader programme of fiscal consolidation and debt restructuring efforts, but maintaining sustainable public finances remains necessary to protect macroeconomic stability. A successor programme would therefore need to balance the government’s desire for greater investment with the need to maintain credible fiscal policies. This balance will be particularly important as Zambia seeks to create fiscal space for development without undermining the stability achieved in recent years.
The IMF has also highlighted the importance of revenue mobilisation in strengthening Zambia’s public finances. Stronger domestic revenue collection can help reduce pressure on government borrowing and create greater room for development spending. At the same time, revenue policies need to operate alongside measures that support productive private-sector activity. The discussions over the 2027 National Budget and the 2027 to 2029 Medium-Term Budget Plan will provide an opportunity to consider how these competing objectives can be managed. The outcome of these policy discussions will help shape Zambia’s economic direction during the next phase of its engagement with the IMF.
The successor programme discussions also have implications for young people because employment is one of the government’s stated priorities. Zambia’s economic transformation will require businesses that can expand production and create opportunities for workers entering the labour market. Investment in skills can help young people meet the needs of growing industries, while stronger private-sector activity can create additional employment opportunities. Export-oriented businesses can also connect Zambia’s workforce to international markets and supply chains. The focus on jobs therefore links the proposed IMF programme directly to broader questions about household incomes, skills development and economic opportunity.
The IMF mission’s engagement with institutions beyond the Ministry of Finance and National Planning will also be significant. Discussions with the Bank of Zambia can address monetary and financial sector issues, while engagement with the Zambia Revenue Authority can focus on revenue mobilisation and tax administration. Other public institutions can contribute information on structural reforms and sector-specific policies that affect investment and economic activity. A broad institutional dialogue allows the proposed programme to consider economic policy as a connected system rather than focusing on fiscal policy alone. The process is expected to continue through October 10, 2026, after which further steps would be needed before any successor arrangement could become a formal IMF-supported programme.
Zambia’s engagement with the IMF has therefore entered a new phase following the completion of the previous Extended Credit Facility arrangement. The government wants to preserve fiscal and macroeconomic stability while giving greater attention to investment, exports, diversification, productivity and employment. The IMF has indicated that a successor arrangement could support these objectives while maintaining debt sustainability and macroeconomic stability. The ongoing discussions around the 2027 budget and medium-term fiscal plan will be important in translating the broader vision into concrete economic policies. The central challenge will be to achieve stronger and more inclusive growth without reversing the stability that Zambia has worked to restore.
The proposed successor programme represents an important part of Zambia’s economic policy discussions as the country seeks to move from stabilisation toward sustained expansion. The previous ECF arrangement provided financial support while Zambia implemented reforms aimed at correcting macroeconomic imbalances and strengthening public finances. The new discussions place greater emphasis on how stability can support investment, productive capacity, exports and employment. Government priorities include export-led growth, foreign direct investment, human capital development and a stronger regulatory and governance environment. If these priorities are translated into effective policies while maintaining fiscal discipline and debt sustainability, the next phase of Zambia’s IMF engagement will be closely connected to the country’s broader effort to achieve sustainable economic growth and create more jobs.