The International Monetary Fund (IMF) says discussions with Zambia over a potential new financial support program could begin as early as April, but a final agreement is likely to come only after the country holds general elections in August. Zambia’s previous IMF arrangement, a $1.7 billion Extended Credit Facility approved in 2022 ended in January after helping stabilize the country’s finances and support economic reforms. Authorities in Lusaka have indicated interest in negotiating a fresh program with the Washington-based lender to sustain fiscal reforms and economic recovery.
President Hakainde Hichilema, who is expected to run for a second term, has publicly signaled that his government is open to further cooperation with the IMF as the country seeks to maintain investor confidence and macroeconomic stability. Zambia has recently made progress in addressing its heavy debt burden. In 2024, the copper-producing nation finalized debt restructuring deals with official and private creditors, after becoming the first African country to default on its sovereign debt during the COVID-19 pandemic in 2020.
The government has also attracted renewed investment in the mining sector, particularly in copper, Zambia’s main export and strengthened its foreign exchange reserves. Reflecting these improvements, the IMF forecasts that Zambia’s economy could expand by about 5.5% in 2026, supported by stronger mining output, improved fiscal management and continued structural reforms. However, the lender noted that the timing of any new program will likely depend on the outcome of the August elections and the policy direction of the next administration.
