IMF Engagement with Zambia Poised for Post-Election Progress

The International Monetary Fund has advanced discussions with Zambia on a new support program. Talks will continue post-August elections, focusing on macroeconomic policies and fiscal consolidation. With fiscal pressures rising, Zambia's primary surplus is projected at 1.1% of GDP. Zambia's recent IMF program concluded with a total of $1.7 billion disbursement.

The International Monetary Fund (IMF) announced progress in discussions with Zambia regarding a new support program. These talks are set to continue after the nation's general elections in August.

This announcement follows an IMF staff visit to Lusaka from April 30 to May 13. Officials from Zambia reaffirmed their commitment to a Fund-supported program that emphasizes sound macroeconomic policies and fiscal consolidation, without compromising essential social spending, according to the IMF statement.

The IMF highlighted the challenge of maintaining recent economic gains amid election-year pressures and global economic uncertainty, noting intensified fiscal pressures with Zambia's primary surplus now projected at 1.1% of GDP, down from 3.8% during the final review of the previous program. The previous IMF program ended in January with total disbursements of $1.7 billion supporting Zambia, as the nation transitions from a prolonged debt-restructuring phase. President Hakainde Hichilema will seek re-election in the upcoming August elections.