Musokotwane to Contract More IMF Loans
Musokotwane to Contract More IMF Loans
ZAMBIA COMMENCES DISCUSSIONS WITH THE IMF ON A SUCCESSOR ECF PROGRAMME
The Government of the Republic of Zambia has commenced discussions with an International Monetary Fund mission on a successor programme under the Extended Credit Facility, seeking to build on restored macroeconomic stability while accelerating investment, exports, diversification and job creation.
The IMF mission, led by Mission Chief EDWARD GEMAYEL, has commenced engagements, which are scheduled to continue through 10th October, 2026. The mission opened with a meeting with Finance and National Planning Minister Dr. SITUMBEKO MUSOKOTWANE, MP, and the Ministry’s top management team at the Ministry headquarters in Lusaka.
During the mission, the IMF will hold discussions with the Ministry of finance and National Planning and other public institutions, the Bank of Zambia, the Zambia Revenue Authority and other relevant institutions, on economic and structural policy issues that will anchor the proposed programme, including thoughts on the 2027 National Budget, and 2027-2029 Medium-Term Budget Plan.
The successor programme is expected to build on stability achieved under the previous ECF arrangement, with greater emphasis on sustainable and inclusive growth, private-sector-led and export-oriented expansion, investment, diversification and jobs, while safeguarding debt sustainability.
IMF Mission Chief EDWARD GEMAYEL said the successor programme is one that would help preserve macroeconomic stability and debt sustainability, while aligning with the Grow Zambia Agenda to support private-sector investment, exports, diversification, jobs and sustainable growth.
Zambia’s 38-month IMF-supported ECF, approved August 31, 2022 at SDR978.2 million (about US$1.3 billion), concluded January 27, 2026 after six reviews. The final SDR138.9 million (about US$190 million) disbursement raised total access to SDR1,271.66 million (about US$1.7 billion), equivalent to 130 percent of Zambia’s IMF quota, while supporting macroeconomic stability.
Sharing the Governments strategic vision for the next five years, Dr. MUSOKOTWANE said Zambia would maintain fiscal and macroeconomic stability while placing greater emphasis on growth, investment and employment. “The focus now, over the next five years, is to maintain fiscal stability, macroeconomic stability, with a lot of bias towards growth,” he told the mission.
The Minister said employment, particularly for young people, remains a major challenge, thereby making stronger investment and sustained growth critical. The Government would therefore combine supportive policies with direct investor engagement. “We have to reach out to investors, talk about our country, talk about the opportunities,” he said.
Dr. MUSOKOTWANE said the visioned growth strategy rests on four areas: export-led growth, foreign direct investment, human capital development, and a stronger regulatory and governance environment.
On exports, the Minister said Zambia’s relatively small domestic market made outward-oriented growth essential. He cited GERMANY, JAPAN and Southeast Asian economies, where exports helped generate foreign earnings and expanded domestic demand. “So export-led growth is very important,” he said.
On FDI, Dr. MUSOKOTWANE said Zambia needed to embrace foreign investments more deliberately to accelerate growth and reduce poverty, citing economies that used international capital, technology and market access to support transformation. “We’ll continuously be speaking to our fellow countrymen and women to persuade them that FDI is a critical ingredient in our fight against poverty, unemployment, and low incomes” he said.
On human development, Dr. MUSOKOTWANE said the skills policy will extend beyond university qualifications to occupational competence across the economy, including machine artisans, operators, plumbers, mechanics, technicians and other professionals. He affirmed that the Government would continue investing in education while addressing skills gaps required by industry.
The fourth pillar centers on the regulatory and governance environment, Dr. MUSOKOTWANE, said, adding that Zambia needed rules that attracted FDI while enabling domestic businesses to start, expand and compete.
Turning to the proposed successor programme, he said IMF engagement should retain its focus on maintaining appropriate economic balances while broadening toward facilitating growth. “It is also time to broaden our thinking about how we facilitate growth in some of these areas that we talk about,” he said.
The Minister said macroeconomic management should support higher investment, productive capacity, exports and employment while safeguarding the stability restored through recent reforms.
The IMF mission will continue policy discussions with Government institutions through October 10, 2026. The IMF Mission Chief was accompanied to the Ministry by outgoing IMF Resident Representative ERIC LAUTIER and other senior IMF officials. The Minister was accompanied by Secretary to the Treasury FELIX NKULUKUSA, Permanent Secretary for Economic Management and Investment MULELE MULELE, Permanent Secretary for Budget and Resource Mobilization MWAKA MUKUBESA, and other senior officials.
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GREEN PAPER:
1) Download A Copy Of The Green Paper, Here: https://www.mofnp.gov.zm/?wpdmpro=2027-2029-medium-term-budget-plan-and-the-2027-budget-green-paper
2) Submit via: budget.office@mofnp.gov.zm or treasury.briefs@mofnp.gov.zm