Zambia to Receive $194mln from IMF After Reform Review

• IMF to disburse $194 million to Zambia under the Extended Credit Facility
• Despite drought, real GDP growth in 2024 is estimated at 4%, up from 1.2%
• Total IMF support under the ECF to reach $1.5 billion after latest tranche

Zambia is set to receive a $194 million disbursement from the International Monetary Fund (IMF) following the approval of recent reviews under the Extended Credit Facility (ECF). The announcement was made on June 9, 2025, by Mercedes Vera Martin, IMF Mission Chief for Zambia.

The disbursement follows the fifth review of Zambia’s ECF program and the conclusion of the IMF’s 2025 Article IV consultation. The 38-month program, initiated to support macroeconomic stability and inclusive growth, saw its total allocation rise to $1.7 billion in June 2024. The upcoming tranche will bring total IMF support disbursed under the program to $1.5 billion.

Zambia’s economic performance has surpassed earlier expectations despite a severe drought. Real GDP growth is now estimated at 4% for 2024, up from a prior forecast of 1.2%. This improvement is attributed to strong activity in the mining, ICT, financial services, and construction sectors, as well as a milder contraction in agriculture.

The IMF noted increasing fiscal pressures due to rising debt service obligations and social spending. In response, the Zambian government has committed to revising the 2025 budget to enhance revenue and prioritize expenditures. Fiscal discipline has improved, with the 2024 primary surplus reaching 2.9% of GDP, driven by spending cuts amid limited financing. Targeted social protection programs were implemented to support vulnerable households affected by drought and inflation.

The IMF emphasized the urgency of structural reforms. Priorities include improving governance, reducing the state’s role in sectors such as agriculture, and creating a more favorable environment for investment. The Fund also highlighted the importance of increasing domestic revenue and improving policy implementation, particularly in the energy sector.

Looking ahead, the IMF projects Zambia’s growth will accelerate to 5.8% in 2025.

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