CSPR WARNS IMF DEAL MUST NOT DEEPEN HOUSEHOLD POVERTY
Civil society body raises concern over K212.2 billion debt servicing burden, urges protection of social spending and jobs
By Francis Maingaila ♥️
Lusaka, Zambia24 — 10-10-2026 — The Civil Society for Poverty Reduction (CSPR) has warned the Government against negotiating an International Monetary Fund (IMF) programme that prioritises economic stability at the expense of household welfare, warning that high debt servicing costs could limit resources available for social protection and development.
CSPR Executive Director Isabel Mutembo Mukelabai said the successor Extended Credit Facility programme should shift Zambia’s focus from economic stabilisation towards inclusive growth, job creation, improved household incomes and measurable poverty reduction.
In a statement responding to the commencement of discussions between the Government and the IMF on a new programme, Ms Mukelabai welcomed the talks but said their success should be measured by improvements in the lives of ordinary Zambians, rather than economic indicators alone.
She said the previous IMF-supported programme had helped restore macroeconomic stability, strengthen foreign reserves, improve investor confidence and support progress towards debt restructuring.
However, she said these gains must now translate into tangible economic benefits for households, small-scale farmers, informal traders, women, young people and businesses, particularly those operating outside major urban and mining centres.
“The proposed successor programme should therefore mark a deliberate transition from a primary focus on stabilisation towards inclusive, productive and employment-intensive growth,” Ms Mukelabai said.
She said the concern was heightened by the 2027–2029 Medium-Term Budget Plan, which provides for K212.2 billion in debt service payments against K63.2 billion for social benefits over the same period.
Ms Mukelabai said the imbalance highlighted the pressure debt obligations could place on public resources and called for social protection programmes to be safeguarded during negotiations.
She said Social Cash Transfers, the Food Security Pack, school feeding, public welfare assistance and child-focused interventions should be treated as essential investments rather than expenditures that could be reduced whenever fiscal pressures increased.
CSPR said Zambia could not reduce poverty through fiscal consolidation alone, arguing that economic growth must create productive opportunities and improve access to education, healthcare, electricity, water, finance, markets and social protection.
The organisation said the new IMF programme should also protect public investment in agriculture, energy, manufacturing, tourism, infrastructure and other sectors capable of generating employment and broadening the country’s economic base.
On revenue mobilisation, CSPR cautioned that proposed tax reforms should not place a disproportionate burden on low-income households, small traders and vulnerable businesses.
The proposed Medium-Term Revenue Strategy includes broadening the tax base, property taxation, integrating informal businesses and artisanal miners into the tax system, improving digital tax compliance and reviewing tax incentives.
Ms Mukelabai said these measures could strengthen public finances but urged the Government to introduce clear safeguards, simplify compliance procedures and improve transparency on tax expenditures.
She also called for large and profitable economic actors, including multinational mining companies, to make a fair contribution to national revenue.
The organisation said the Government’s revenue targets, which seek to increase domestic revenue from 21.8 percent of gross domestic product in 2027 to 22.8 percent in 2029, should be pursued alongside protection for essential public services and productive investment.
CSPR also raised concern over Zambia’s external debt restructuring arrangements, warning that improved economic performance could trigger faster debt repayments under provisions linked to the country’s debt-carrying capacity.
Under the official creditor agreement, Zambia secured extended repayment periods and lower interest rates, with the arrangement expected to generate approximately US$5 billion in debt-
savings between 2023 and 2031.
However, the agreement provides for repayments to accelerate, final maturities to be shortened by five years and interest rates to increase if Zambia’s debt-carrying capacity improves sufficiently to justify an upgrade from “weak” to “medium”.
CSPR said this meant stronger economic performance, higher copper prices and renewed mining investment could increase debt repayment obligations, potentially limiting the fiscal benefits of economic recovery.
The organisation urged the Government and the IMF to ensure that improved growth translated into poverty reduction and economic transformation rather than simply bringing forward debt repayments.
It also called for a current and comprehensive public update on Zambia’s outstanding external debt, noting that the Medium-Term Budget Plan indicates agreements in principle have been reached for 94 percent of the debt covered under the external debt restructuring framework, while engagements with remaining creditors continue.
CSPR said the successor programme should be negotiated transparently and aligned with the Grow Zambia Agenda and the forthcoming Ninth National Development Plan.
It called for explicit safeguards for social spending, transparent debt management, fair taxation, climate resilience, employment creation and regular public reporting on programme implementation.
Ms Mukelabai said the ultimate test of the new IMF agreement should be whether it improves livelihoods, reduces poverty and expands economic opportunities for the majority of Zambians.
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