Zambia wins IMF approval for $1.3bn

Zambian President Hakainde Hichilema 

The Executive Board of the International Monetary Fund -IMF- has approved a three -year arrangement under the extended credit facility -ECF-for Zambia in an amount equivalent to around US$1.3 billion, or 100 percent of quota.

Announcing this development, IMF Managing Director Kristalina Georgieva said Zambia is dealing with the legacy of years of economic mismanagement, with an especially inefficient public investment drive.

Georgieva says the ECF supported program will help reestablish sustainability through fiscal adjustment and debt restructuring, create fiscal space for social spending to cushion the burden of adjustment, and strengthen economic governance, including improving public financial management.

The IMF boss is of the view that the program will also catalyze the much needed financial support from development partners.
Further, Georgieva says substantial strengthening of fiscal controls is needed to support the fiscal adjustment, as well as address governance and corruption vulnerabilities.

The program is based on the authorities’ homegrown economic reform plan that aims to restore macroeconomic stability and foster higher, more resilient, and more inclusive growth.