Zambia plans a new IMF financing programme to maintain reforms, debt stability, and investor confidence ahead of elections.
Zambia will pursue a new financing programme with the International Monetary Fund after choosing not to extend its current Extended Credit Facility (ECF), which expires in January 2026, Finance Minister Situmbeko Musokotwane announced.
The government had earlier planned to request a one-year extension worth about $145 million but withdrew the request, opting instead to negotiate a fresh programme once the current deal ends. The Finance Ministry said the decision reflects successful completion of all reviews and performance targets under the existing facility, not strained relations with the IMF.
Musokotwane said the new programme will build on reforms launched in 2022 to restore debt sustainability after Zambia’s 2020 default. Markets reacted cautiously, with dollar bonds dipping before recovering and the kwacha strengthening. With elections due in August 2026 and inflation pressures persisting, economists say a new IMF deal could help anchor fiscal discipline and investor confidence.
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