ZAMBIA/IMF TECHNICAL DISCUSSIONS COULD START END OF APRIL
The IMF has noted and acknowledged progress made by the Zambian government under the Extended Credit Facility, ECF.
As a result, the technical discussions around the second IMF program the Zambian government has requested could begin towards the end of April.
This program is intended to support the economic growth, diversification and employment creation initiatives of the UPND government.
However, because of the forthcoming general elections, substantive talks will only be held with the government that shall be elected.
This is because only then shall a clear policy direction which shall form the basis of discussions be known.
In the meantime, the IMF staff team which was in the country between February 26 to March 4 has noted fiscal pressures that government must be transparent and cautious about lest the gains made on the macroeconomic front are compromised.
Ongoing recruitment in the public service and the forthcoming elections are potential sources of concern which government is advised to watch out for.
Meanwhile, the IMF has revised downwards the 2025 GDP forecast to 4.5% and 5.5% for 2026 respectively.
The IMF attributes this revision to issues in the mining and agricultural sectors as well as the electricity supply challenges that only began to show signs of improvement this year.
Revising GDP forecasts is a common practice by the IMF as it continues to monitor developments that affect economic growth.
It often does this twice in a year or more and sometimes more than twice.
The IMF has advised the Zambian government to watch closely for anything that could seriously throw off balance both the inflation and exchange rates in view of the US/ISRAELI/IRAN war.
Under the ECF IMF program, the Zambian government restructured over 90% of the country’s external public debt, significantly increased international reserves, brought down inflation within the planned 6-8% band and stabilized the exchange rate.
These macroeconomic achievements provided the UPND government with fiscal space to attend to a number of programs and projects in the social sector.
Consequently, the ruling party is heading into the August 13, 2026 general elections confident that the Zambian people will approve its record in office by giving it a second term.