IMF Completes Sixth Review of Zambia Extended Credit Facility, Approves USD 190 million with GDP Growth Projected at 5.8% and Inflation at 9.3% in 2026

LUSAKA – The International Monetary Fund (IMF) has officially concluded its sixth and final review of Zambia's Extended Credit Facility (ECF) arrangement, a significant milestone that underscores the nation's commitment to economic stabilisation and reform. This pivotal decision, announced recently, unlocks a further disbursement of approximately USD 190 million, elevating the total financial support under the ECF programme to a substantial USD 1.7 billion. The completion of this review is not merely a procedural step but a robust affirmation of the progress Zambia has made in implementing critical macroeconomic and structural reforms. These reforms, initiated under the New Dawn government, have aimed at restoring fiscal sustainability, enhancing governance, and fostering an environment conducive to inclusive growth. The ECF, approved in September 2022, has been instrumental in providing much-needed balance of payments support while guiding the country through its debt restructuring process. Looking ahead, the IMF's latest assessment paints a cautiously optimistic picture for the Zambian economy. The institution projects a robust Gross Domestic Product (GDP) growth rate of 5.8% by 2026, a forecast that, if realised, would significantly improve living standards and create employment opportunities across various sectors. This growth trajectory is expected to be underpinned by continued investments in mining, agriculture, and energy, alongside improvements in the business environment. However, the IMF also anticipates inflation to settle at 9.3% by 2026. While this represents a moderation from current higher levels, it remains above the Bank of Zambia's target band, indicating persistent inflationary pressures that will require vigilant monetary policy management. Factors such as volatile global commodity prices, exchange rate fluctuations, and domestic supply-side constraints continue to pose challenges to achieving price stability. The successful conclusion of th