By Angela Moonga
Zambia will successfully conclude its current International Monetary Fund (IMF) Extended Credit Facility (ECF) programme and immediately begin engagement on a successor arrangement that places stronger emphasis on economic growth, investment and job creation, minister of Finance and National Planning Situmbeko Musokotwane has said.
In a statement issued in Lusaka yesterday, the Musokotwane clarified the government’s position as the country approached the final stages of the IMF-supported programme, which began in 2022.
He confirmed that Zambia had opted not to pursue a previously envisaged one-year extension of the existing ECF, choosing instead to transition to a new, full-term programme aligned with evolving national priorities.
Dr. Musokotwane said government’s immediate priority was the conclusion of the sixth and final review of the current ECF arrangement, following which discussions will commence on a successor programme with the International Monetary Fund.
”While the successor framework will continue to address the completion of Zambia’s external debt restructuring, it will also accommodate broader medium-term development needs, particularly the acceleration of economic grow,” he stated.
He stressed that the decision not to extend the current programme should not be interpreted as disengagement from the fund or a retreat from reforms, saying it reflected successful programme completion and a transition to a new phase of cooperation.
The brief extension of the current arrangement from November 2025 to end January 2026, he explained, was purely technical, intended to allow sufficient time for assessment of programme performance as of end-October.
The minister underscored that Zambia has, since 2022, completed all programme reviews without interruption, with a staff-level agreement on the sixth and final review reached last month.
The review, he noted, was now subject to consideration and approval by the IMF Executive Board, in line with established procedures.
”Zambia’s performance under the programme has been exceptionally strong, with all key quantitative targets and structural benchmarks met. This track record has underpinned macroeconomic stabilisation, including sustained fiscal consolidation, with primary fiscal surpluses exceeding 2 percent of GDP, and strengthened confidence in public financial management,” he stated
Dr. Musokotwane stated that the reforms have helped restore economic stability, improve resilience to shocks and support progress on debt restructuring.
He added that the policy environment created under the programme had also enabled Zambia to benefit from favourable copper prices by reviving mining operations, noting that higher prices alone would have delivered little without increased production capacity.
Musokotwane said government’s focus was now on leveraging macroeconomic stability to drive investment, expand productive capacity and create jobs.
”Engagement with the IMF on a successor framework will therefore prioritise growth-oriented structural reforms, value addition, investment mobilisation and inclusive economic opportunities,” he said.
He assured stakeholders that during the transition period before a new programme was agreed, policy continuity will be maintained through strict adherence to the approved national budget, disciplined borrowing and expenditure within Parliament-approved ceilings.
Zambia will also remain in close and continuous engagement with the IMF through Article IV consultations and technical dialogue,” he said.
The minister also reaffirmed the Government’s commitment to debt sustainability, prudent fiscal management, transparent resource use, strengthened domestic revenue mobilisation and inclusive growth.
He emphasised that the reforms undertaken were nationally owned and not dependent on any single external arrangement, pointing to tangible gains already evident in economic stability, growth prospects, social services and investment inflows.
Dr. Musokotwane expressed appreciation to the IMF’s staff, management and executive board, as well as to President Hakainde Hichilema, the Vice President, Cabinet, Parliament and key economic institutions for their role in supporting the reform agenda.
Zambia, he said, remains committed to constructive engagement with the IMF and development partners as it advances towards a more prosperous, resilient and inclusive economy.
