The Executive Board of the International Monetary Fund (IMF) has approved the sixth and final review of Zambia’s Extended Credit Facility, clearing the way for the release of approximately $190 million in financial support.
The approval brings to a close the Southern African country’s IMF-backed programme, which was originally agreed in 2022 as a $1.3 billion package to help stabilise the economy following a sovereign debt default. The facility was later increased to $1.7 billion as Zambia advanced reforms and restructuring efforts.
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Commenting on the outcome, IMF Deputy Managing Director Nigel Clarke said Zambia had made notable progress despite facing both global and domestic pressures. He noted that the country had reduced macroeconomic imbalances, advanced debt restructuring negotiations and pursued consistent fiscal consolidation, while continuing to protect key social spending.
Zambian authorities had earlier explored the possibility of a one-year extension of the programme but later decided against seeking additional time, allowing the arrangement to conclude as scheduled. No official explanation was provided for the change in approach.
The decision comes as Zambia prepares for general elections in August, with President Hakainde Hichilema seeking a second term in office. Government officials had initially expected that an extension could unlock about $145 million in additional IMF funding.
