The International Monetary Fund announced on Friday that its executive board has completed the fifth review of Zambia’s loan programme, triggering the release of approximately $184 million in funding.
According to Reuters, the IMF said the programme is designed to “entrench macroeconomic stability, restore debt and fiscal sustainability, enhance public governance, and foster inclusive growth” in the country.
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Zambia, one of Africa’s top copper producers, is working to recover from a severe regional drought that has slowed economic progress following years of drawn-out debt restructuring talks.
Last year, Zambia reached a restructuring deal with its main creditors. However, it has not yet secured agreements with some smaller lenders, including Afreximbank.
The country’s finance ministry projects economic growth will reach 5.8% this year and rise further to 6.4% by 2026. Analysts say the recently announced 50% tariff on copper by U.S. President Donald Trump is unlikely to significantly impact Zambia’s growth.
They point out that copper exports to the U.S. are minimal and any fluctuations in copper prices are expected to be temporary.
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Image Credit: Solwezi Today Magazine
