<\/p>\n
The proposed Extended Credit Facility (ECF) arrangement would help meet Zambia\u2019s balance-of-payments and budget-financing needs while supporting debt sustainability.<\/p>\n
<\/p>\n
The agreement remains subject to IMF Executive Board approval and the implementation of agreed measures before consideration. \u201cZambia would enter the new programme from a position of strength following the achievements under the recently completed ECF-supported programme,\u201d IMF Mission Chief Edward Gemayel said.<\/p>\n
<\/p>\n
Economic growth is projected at 5.6% in 2026, supported by strong agricultural production, mining activity and exports.<\/p>\n
<\/p>\n
Inflation declined to 6.1% in September, falling within the Bank of Zambia\u2019s target range, while foreign-exchange reserves reached $6.1 billion.<\/p>\n
<\/p>\n
However, Zambia\u2019s fiscal position weakened after value-added tax collections and fuel-tax revenue fell below expectations.<\/p>\n
<\/p>\n
Spending by the Food Reserve Agency also exceeded budgeted levels, weakening the primary fiscal balance compared with the strong result recorded in 2025.<\/p>\n
<\/p>\n
The government is reversing temporary fuel-tax relief, reducing non-priority capital expenditure and taking measures to prevent new arrears.<\/p>\n
<\/p>\n
The proposed programme will use a revenue-led fiscal strategy to rebuild financial buffers and protect debt sustainability.<\/p>\n
<\/p>\n
From 2027, Zambia plans to increase the primary surplus gradually to 3% of gross domestic product by 2029 through stronger revenue collection, tax administration and compliance.<\/p>\n
<\/p>\n
Tax exemptions will also be rationalised under a Medium-Term Revenue Strategy.<\/p>\n
<\/p>\n
Reforms will strengthen oversight of the Food Reserve Agency, state-owned enterprises and public-private partnerships while addressing domestic payment and value-added tax refund arrears.<\/p>\n
<\/p>\n
With inflation back within the target range, monetary-policy normalisation has begun. Future decisions should remain data-driven and focused on price stability.<\/p>\n
<\/p>\n
Exchange-rate flexibility will remain an important mechanism for absorbing external shocks, supported by reserve accumulation and coordination between fiscal and monetary authorities.<\/p>\n
<\/p>\n
Governance and anti-corruption reforms will include greater transparency in mining licences and beneficial ownership.<\/p>\n
<\/p>\n
Zambia also plans to restore transparent and competitive access to the TAZAMA pipeline.<\/p>\n
<\/p>\n
The programme will build on the Grow Zambia Agenda, with the government seeking to translate economic growth into employment, higher incomes and improved living standards.<\/p>\n
<\/p>\n
–IMF\/ChannelAfrica–<\/p>\n","protected":false},"featured_media":43418,"template":"","meta":{"_acf_changed":false,"_links_to":"","_links_to_target":""},"news-type":[44],"class_list":["post-47690","news","type-news","status-publish","has-post-thumbnail","hentry","news-type-finance","entry"],"acf":{"short_description":"Zambia has reached a staff-level agreement with the International Monetary Fund (IMF) on a new three-year programme aimed at preserving economic stability and supporting private-sector-led growth.","published_date":"","news_description":"Zambia has reached a staff-level agreement with the International Monetary Fund (IMF) on a new three-year programme aimed at preserving economic stability and supporting private-sector-led growth.","form_embed":"","author":"","image_caption":""},"_links":{"self":[{"href":"https:\/\/www.channelafrica.co.za\/channelafrica\/wp-json\/wp\/v2\/news\/47690","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.channelafrica.co.za\/channelafrica\/wp-json\/wp\/v2\/news"}],"about":[{"href":"https:\/\/www.channelafrica.co.za\/channelafrica\/wp-json\/wp\/v2\/types\/news"}],"version-history":[{"count":1,"href":"https:\/\/www.channelafrica.co.za\/channelafrica\/wp-json\/wp\/v2\/news\/47690\/revisions"}],"predecessor-version":[{"id":47691,"href":"https:\/\/www.channelafrica.co.za\/channelafrica\/wp-json\/wp\/v2\/news\/47690\/revisions\/47691"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.channelafrica.co.za\/channelafrica\/wp-json\/wp\/v2\/media\/43418"}],"wp:attachment":[{"href":"https:\/\/www.channelafrica.co.za\/channelafrica\/wp-json\/wp\/v2\/media?parent=47690"}],"wp:term":[{"taxonomy":"news-type","embeddable":true,"href":"https:\/\/www.channelafrica.co.za\/channelafrica\/wp-json\/wp\/v2\/news-type?post=47690"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}