Zambia has abandoned plans to extend its International Monetary Fund (IMF) loan programme before it expires at the end of this month, the fund said on Wednesday and reported by Reuters.
“While the authorities initially requested a one-year extension of the Extended Credit Facility (ECF) arrangement, they have since informed the IMF team that they will not pursue this option,” an IMF spokesperson said.
The programme, agreed in 2022, was designed to help Zambia restore debt sustainability following its 2020 default.
The sixth and final review under the arrangement is expected to be considered by the IMF’s executive board at the end of January.
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Zambia had hoped to secure about $145 million in additional funding through the proposed extension.
No reason was provided for the decision, which comes as President Hakainde Hichilema’s government prepares for elections in August while facing double-digit inflation.
The government has projected an improved fiscal outlook for 2026, forecasting that the budget deficit will shrink by more than half and that economic growth will rise above 6%, following years of protracted debt restructuring negotiations and the impact of a severe drought.
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Image Credit: The Southern African Times
