This paves the way for a fresh disbursement once approved by the IMF Executive Board.
The IMF team, led by Mission Chief Mercedes Vera Martin, held in-person discussions in Lusaka from October 22, 2025, to November 4, 2025, with follow-up engagements conducted virtually from Washington, D.C. The agreement would allow Zambia to access $190 million, bringing total disbursements under the 38-month programme to $1.7 billion since August 2022.
The IMF noted that Zambia has made substantial progress in restoring macroeconomic stability despite a challenging global and domestic environment.
During the programme period, the authorities reduced key macroeconomic imbalances, advanced negotiations on external debt restructuring, and sustained fiscal consolidation while protecting social spending. These measures have strengthened economic resilience and rebuilt buffers against shocks.
Economic growth has continued in 2025, with real gross domestic product (GDP) projected at 5.2%, although performance in mining and wholesale and retail trade has been weaker than earlier expectations. Inflationary pressures are easing, supported by a stronger Kwacha, lower fuel prices, and improved food supply conditions. Gross international reserves are rising and are expected to cover four months of prospective imports by the end of 2025.
Over the medium term, the outlook remains broadly positive. Growth is projected to average 5.6% between 2026 and 2031, driven by investment, agriculture, and improved electricity generation. Inflation is expected to gradually return to the 6% to 8% target band by 2027, while the current account balance is projected to move into surplus from 2026 as copper production expands and prices remain elevated.
Fiscal performance has remained strong, with the primary surplus in 2025 projected at 2.2% of GDP, supported by non-mining revenues and restrained spending. The IMF stressed that maintaining fiscal discipline and limiting new borrowing will be critical, given Zambia’s high risk of debt distress, while continuing to safeguard social expenditure.
The Fund also underscored the importance of prudent monetary policy to anchor inflation expectations, continued accumulation of international reserves, and sustained progress on structural reforms. Strengthening governance, improving public financial management, reforming State-Owned Enterprises, and advancing energy sector reforms were highlighted as key priorities to support inclusive, private sector-led growth.
The IMF Executive Board is expected to consider the final review in the coming weeks.
–IMF/ChannelAfrica–
