IMF Staff Conclude visit on the Sixth Review of the Extended Credit Facility with Zambia

IMF Staff Conclude visit on the Sixth Review of the Extended Credit Facility with Zambia

November 5, 2025

• An IMF team visited Lusaka to discuss recent economic and financial developments as well as economic policies that could underpin the completion of the Sixth Review of the Extended Credit Facility Arrangement.
• The Zambian economy has demonstrated resilience amid last year's drought, supported by a record-high maize harvest and mining production. Economic activity continues to expand, and inflationary pressures have eased in 2025.
• Program implementation has progressed, although challenges remain. The authorities are advancing legislative reforms in line with program commitments. Discussions will continue virtually in the coming weeks.

Lusaka, Zambia: An International Monetary Fund (IMF) mission team led by Ms. Mercedes Vera Martin visited Lusaka from October 22 to November 4, 2025 to discuss recent economic developments and policy priorities under Zambia's program supported by the Extended Credit Facility (ECF) arrangement.

At the end of the visit, Ms. Vera Martin issued the following statement:

"The IMF team held constructive and productive discussions with the Zambian authorities on recent economic developments and policy measures needed to advance reforms under the ECF-supported program. Discussions will continue in the coming days from Washington, D.C.

"The Zambian economy has demonstrated resilience amid last year's drought, with real GDP growth at 3.8 percent in 2024 and 4.5 percent in the first half of 2025, boosted by a record-high maize harvest and mining production. Real GDP growth is projected at 5.2 percent and 5.8 percent in 2026, respectively, as limited hydropower generation and periodic load management would continue to weigh on non-mining economic performance. Inflationary pressures are easing supported by lower fuel and food prices, exchange rate appreciation, and the impact of tight monetary policy. Preliminary data show a current account deficit of 2.0 percent of GDP in the first half of 2025, resulting from lower official grants, partly reflecting the unwinding of drought-related support, and a broad-based increase in imports. Liquidity conditions have improved, investor demand for government securities has remained strong, and robust private sector credit has supported the manufacturing, agriculture and energy sectors.

"Program implementation has progressed, although challenges remain. The authorities are advancing legislative reforms to strengthen financial sector supervision, the oversight and governance of state-owned enterprises, and the anti-corruption framework in line with program commitments. Discussions also focused on reforms aimed at improving competition and the role of the private sector in agriculture and advancing implementation of the open-access framework for the Tazama pipeline in line with the approved guidelines.

"The authorities reaffirmed their strong commitment to policies aimed at preserving macroeconomic stability and sustaining growth. Fiscal consolidation efforts are expected to continue. Sustaining this momentum will be key to anchoring confidence, rebuilding buffers to reduce vulnerabilities, and ensuring that the benefits of renewed stability reach all Zambians.

"The IMF mission team met with Minister of Finance and National Planning Dr. Situmbeko Musokotwane, Governor of the Bank of Zambia Dr. Denny Kalyalya, Secretary to the Treasury Mr. Felix Nkulukusa, Deputy Governor Dr. Francis Chipimo and other senior government officials, as well as representatives of the private sector, civil society, and development partners. The team expresses its sincere appreciation to the Zambian authorities for their close cooperation."