The International Monetary Fund said on Thursday that technical discussions with Zambia on a potential new support programme could begin in April, but a final agreement is expected only after the country holds its general elections in August, Reuters reported.
Zambia’s most recent IMF programme concluded in January, with total disbursements of $1.7 billion that helped the southern African nation as it worked through a lengthy debt restructuring process.
“Zambia has made substantial progress in restoring macroeconomic stability under the recently completed IMF-supported programme,” the IMF said in a statement released after a staff mission to the country.
According to the Fund, Zambian authorities have shown interest in securing another programme to follow the recently completed one.
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“The authorities expressed interest in a successor arrangement with the IMF. Initial technical discussions could begin as early as late April, with more engagement expected after the general elections once a new government is in place.”
Hakainde Hichilema, Zambia’s president, is expected to run for a second term in the August election.
The IMF added that Zambia’s economic outlook remains positive, although it has slightly reduced its growth forecasts. The Fund now expects economic growth to reach 4.5% in 2025 and 5.5% in 2026.
“The mission also discussed emerging fiscal pressures. While the 2026 budget framework targets a strong primary surplus, early signs of slippage have begun to emerge, reflecting spending pressures related to the wage bill, government support to the agricultural sector, and election-related expenditures,” the IMF statement said.
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