The Executive Board of the International Monetary Fund (IMF) has approved the sixth and final review of Zambia’s Extended Credit Facility (ECF) program. The decision allows for the immediate release of about 190 million US dollars to the Southern African nation. This approval officially brings to an end a multi-year IMF support program that helped Zambia recover from a deep debt crisis and stabilize its economy.
The IMF confirmed the decision in a statement released on Tuesday. With this disbursement, the total funds released under the program now move close to the full amount agreed between Zambia and the global lender. The money is expected to support Zambia’s balance of payments, strengthen foreign exchange reserves, and help the government meet key financial obligations.
This final review marks an important milestone for Zambia. It signals the end of direct IMF monitoring under the current agreement. It also shows that the IMF believes Zambia met most of the policy targets and reform commitments required under the program.

Background of Zambia’s IMF Program
Zambia entered into an Extended Credit Facility agreement with the IMF in 2022 during a period of severe economic stress. The country had defaulted on its external debt, inflation was rising, and public finances were under heavy pressure. The initial deal was worth 1.3 billion dollars and aimed to restore economic stability while rebuilding investor confidence.
The IMF later expanded the program to 1.7 billion dollars to provide additional support. This expansion came as Zambia continued to push ahead with reforms. The program focused on improving public finance management, reducing debt risks, strengthening governance, and protecting spending on essential social services such as health and education.
Throughout the program, Zambia received funding in stages. Each disbursement depended on the country passing IMF reviews. These reviews examined progress on fiscal discipline, debt restructuring, and key structural reforms.
Economic Progress Despite Challenges
According to the IMF, Zambia made strong progress under the program despite facing several challenges. These included global economic slowdowns, higher interest rates, and the lingering effects of the COVID-19 pandemic. Even with these pressures, the country managed to reduce major economic imbalances.
IMF Deputy Managing Director Nigel Clarke said Zambia significantly improved its economic position. He noted progress in debt restructuring and sustained efforts to control government spending. These steps helped reduce budget deficits while improving overall financial stability.
The IMF also highlighted that Zambia protected social spending during this period. While the government tightened its budget, it continued to fund programs that support vulnerable groups. This balance helped reduce the social impact of economic reforms.
Debt Restructuring and Fiscal Reforms
A key objective of the IMF program was to help Zambia address its high public debt. Before the agreement, debt levels were unsustainable and limited the government’s ability to invest in development. Through talks with creditors, Zambia worked to ease repayment pressure and improve long-term debt sustainability.
At the same time, the government introduced reforms to boost revenue and reduce wasteful spending. These included better tax collection, reduced subsidies, and stronger oversight of public funds. These measures played a critical role in restoring confidence in Zambia’s economic management.
The IMF acknowledged that challenges remain. However, completing the final review shows that Zambia met the core conditions set under the program.
Decision Not to Extend the Program
At first, the Zambian government considered seeking a one-year extension of the IMF program. The extension could have unlocked an extra 145 million dollars in funding. This support might have helped manage remaining economic risks.
The government later changed course and chose not to request an extension. The program will now end after the final disbursement. Officials did not give a clear reason for the decision.
Some analysts believe Zambia feels confident enough to continue reforms without IMF oversight. Others suggest political factors influenced the decision, especially with national elections approaching.
Political Context and Upcoming Elections
Zambia will hold general elections in August, with President Hakainde Hichilema seeking re-election. The end of the IMF program comes at a sensitive time, as economic performance will play a major role in the campaign.
President Hichilema’s government has often cited the IMF deal as proof of its commitment to economic reform. Completing the program may strengthen its credibility with voters and international partners.
Without an extension, the government now carries greater responsibility. It must maintain discipline and continue reforms without direct IMF backing.
What the Final Disbursement Means for Zambia
The 190 million dollar disbursement will provide short-term financial relief. It will support foreign exchange reserves and ease pressure on public finances. The funding also sends a positive signal to investors and development partners.
However, experts warn that IMF support alone cannot solve all economic problems. Long-term growth depends on continued reforms, economic diversification, and stronger governance. Attracting private investment and creating jobs will remain key priorities.
The end of the IMF program marks both an achievement and a turning point. Zambia now enters a new phase where domestic policy choices will shape its economic future.
Outlook for the Zambian Economy
Zambia’s future economic performance will depend on how well the government builds on recent progress. Fiscal discipline, careful debt management, and investment in sectors such as agriculture, mining, and manufacturing will be essential.
Global factors will also matter. Changes in commodity prices, interest rates, and regional stability could affect growth. As a major copper producer, Zambia remains sensitive to movements in global copper prices.
In summary, the IMF’s approval of the final review represents a major milestone. It reflects years of reform and difficult decisions. While challenges remain, Zambia now has a stronger foundation to pursue stable growth and renewed confidence.
