An International Monetary Fund (IMF) mission has arrived in Lusaka, Zambia to begin the first review of Zambia’s IMF Program under an Extended Credit Facility (ECF) arrangement. The IMF program was approved by the Executive Board in August 2022 and is aimed at supporting the government’s reform plan to restore debt sustainability, create fiscal space for much-needed social spending, and achieve sustainable and inclusive economic growth.
The IMF delegation, led by Allison Holland, Mission Chief for Zambia, will be in the country from March 22 to April 5 to undertake the first review and Article IV consultation. This review is part of the scheduled regular reviews that the IMF will undertake to assess Zambia’s progress in implementing the ECF program.
During the review, the IMF will collect economic and financial information and discuss the country’s economic developments and policies. The Fund will assess performance in areas such as restoration of fiscal and debt sustainability, improving debt management and transparency, strengthening governance and financial sector stability, and strengthening financial management.
Secretary to the Treasury, Felix Nkulukusa, issued a statement saying that the Ministry of Finance and National Planning is pleased to welcome the IMF Mission Team back to Lusaka and to have the opportunity to discuss Zambia’s positive reform progress and next steps in the program implementation. He added that the government remains committed to delivering positive economic impacts for the country and improving the livelihoods of the Zambian people with the support of the IMF.
The IMF program is expected to help Zambia address its debt crisis and achieve sustainable economic growth. Zambia’s debt had risen to unsustainable levels, and the country had defaulted on some of its debt payments before the IMF program was approved. The IMF program aims to restore debt sustainability by improving debt management and transparency, reducing the fiscal deficit, and increasing revenue.
The program also includes measures to strengthen governance and financial sector stability, which are crucial for achieving sustainable and inclusive economic growth. The IMF program is expected to create fiscal space for much-needed social spending, which will help improve the livelihoods of the Zambian people.
Zambia’s economy has been facing several challenges in recent years, including low economic growth, high inflation, and a shortage of foreign exchange. The IMF program is expected to help address these challenges by providing policy advice and financial assistance to support the government’s reform program.
The first review and Article IV consultation by the IMF delegation is a critical step in the implementation of the IMF program. The review will help assess Zambia’s progress in implementing the program and identify areas that require further attention. The IMF program is expected to provide significant benefits to Zambia, and the government is committed to implementing the program successfully.
The arrival of the IMF mission in Zambia is an important development for the country’s economy. The IMF program is expected to help address Zambia’s debt crisis, create fiscal space for much-needed social spending, and achieve sustainable and inclusive economic growth. The first review and Article IV consultation by the IMF delegation will help assess Zambia’s progress in implementing the program and identify areas that require further attention. The government remains committed to delivering positive economic impacts for the country and improving the livelihoods of the Zambian people with the support of the IMF.