By Dr. Lubinda Haabazoka, Economist
The International Monetary Fund’s completion of the sixth and final review under Zambia’s Extended Credit Facility (ECF) marks a historic milestone in the country’s economic recovery journey. This is not merely a technical conclusion of a financing programme; it is a powerful international endorsement of Zambia’s reform path and a signal that the foundations of macroeconomic stability have been firmly restored. This is a signal that Zambia is out of economic crisis. A positive nod to economic management of the country.
Over the past three years, Zambia has navigated one of the most challenging economic periods in its history, characterised by debt distress, fiscal pressures, climate shocks, and global uncertainty. The successful completion of this programme, with total disbursements of about US$1.7 billion, reflects the resilience of the Zambian economy and the credibility of government policy reforms. It also demonstrates that Zambia has regained the confidence of the international financial community.
Why This Matters for Zambia
First, the programme’s completion strengthens Zambia’s macroeconomic credibility. Investors, development partners, and credit rating agencies closely track IMF programmes as benchmarks of sound economic management. A completed ECF arrangement signals that Zambia has met stringent fiscal, monetary, and structural reform standards. This enhances investor confidence, lowers the cost of borrowing, and improves access to both concessional and commercial financing.
Second, the positive growth outlook, 5.2 percent in 2025 and a projected 5.8 percent in 2026, shows that Zambia is not merely stabilising but growing. Growth is being driven by strong mining performance, record agricultural output, and recovering electricity generation. These are the productive sectors that directly support jobs, exports, and incomes, making growth both meaningful and inclusive.
Third, inflation is projected to converge toward the 6–8 percent target band by 2027. This matters greatly to ordinary citizens. Lower and stable inflation protects purchasing power, reduces the cost of living, and creates a more predictable environment for businesses and households to plan, save, and invest.
Fourth, Zambia’s public debt has been assessed as sustainable, although risks remain elevated. This is a crucial shift from the debt distress that previously constrained fiscal space and development spending. Progress in restructuring external debt, including agreements with bilateral creditors and advancing negotiations with commercial creditors, creates room for government to redirect resources toward social services, infrastructure, and economic development rather than debt servicing.
What This Means for Citizens
The successful IMF review is not an abstract financial achievement; it has direct implications for the daily lives of Zambians. Fiscal discipline combined with safeguarded social spending ensures that essential services such as education, health, and social protection continue to be funded. Strengthened revenue mobilization and public financial management enhance the government’s capacity to deliver development more efficiently and transparently.
Moreover, reforms in the financial sector, including the review of the Banking and Financial Services Act and the adoption of a deposit insurance scheme, strengthen financial stability and protect depositors. This builds trust in the banking system and supports access to finance for businesses and households.
Reforms in agriculture and energy governance will further improve the business climate, enhance food security, and support private sector participation, critical pillars for economic diversification and job creation.
The Road Ahead: From Stabilisation to Transformation
While this achievement deserves recognition, it must also serve as a foundation for the next phase of Zambia’s economic transformation. The IMF rightly emphasizes the need to maintain fiscal discipline, prudent borrowing, and continued reforms. Stability must now translate into sustained, inclusive growth.
Zambia’s development strategy should focus on scaling up mining investments responsibly, expanding agricultural value chains, accelerating energy generation, and strengthening manufacturing and services. Economic diversification is not optional. It is essential for long-term resilience and job creation, especially for the youth.
Equally important is strengthening governance, transparency, and climate resilience. These are not only international obligations but domestic necessities for sustainable development and intergenerational equity.
The completion of Zambia’s IMF ECF programme is a landmark achievement that signals restored macroeconomic stability, renewed international confidence, and a positive growth trajectory. It affirms that disciplined policy, structural reforms, and sound economic management can reverse even the most severe economic challenges.
For Zambia, this moment must be seized, not as an end point, but as a launchpad for accelerated development, inclusive prosperity, and long-term economic transformation. If momentum is sustained, Zambia is well positioned to translate macroeconomic gains into tangible improvements in livelihoods, opportunities, and national prosperity.
