IMF releases $187mn Zambia payout

In a boost to Zambia’s economic outlook, the International Monetary Fund (IMF) has approved a loan payout worth $187 million under the country’s Extended Credit Facility arrangement. The IMF’s Mission Chief for Zambia, Mercedes Vera Martin, praised the nation for its efforts to stabilize the economy despite external shocks. The approval of the second review of Zambia's IMF-supported program signals a positive trajectory for the nation's economic recovery. Zambia has demonstrated resilience in the face of challenges such as lower mining production, decreased copper prices, and a prolonged debt restructuring process. These factors have led to a complex economic environment, impacting the exchange rate and raising inflation levels. Despite these challenges, Zambia has maintained its commitment to economic reform and is projected to achieve a growth rate of 4.3% in 2023, with an increase to 4.7% in 2024, surpassing previous estimates. To address the current economic hurdles, Zambia has implemented tighter monetary policies to combat inflation and has made significant fiscal efforts while prioritizing spending on essential sectors like education and healthcare. The nation's authorities are diligently working towards restoring debt sustainability by engaging with both official bilateral creditors and private lenders. Additionally, Zambia is focused on sustaining fiscal discipline, executing debt restructuring measures, calibrating monetary policies effectively, and initiating structural reforms to ensure macroeconomic stability and foster inclusive growth. Mercedes Vera Martin lauded Zambia's dedication to overcoming economic challenges and achieving important milestones. Despite the obstacles posed by lower mining outputs and debt restructuring processes, the nation's unwavering commitment to reform and strategic economic planning have positioned Zambia on a path towards sustainable growth and stability. The IMF's financial support underscores confidence in Zambia's reform agenda and its potential to navigate current economic headwinds successfully. The $187 million payout will provide the necessary resources to bolster Zambia's reform initiatives and propel the nation towards a more robust and inclusive economic future.