The International Monetary Fund (IMF) Executive Board has completed its second review of Zambia’s Extended Credit Facility (ECF), resulting in the disbursement of approximately US$187 million. This move follows the approval of the first review in July 2023, which allowed for the disbursement of approximately US$188 million. The total disbursements to date now stand at US$561 million, out of the cumulative sum of US$1.3 billion envisaged under the 38-month ECF program with the IMF, approved on August 31, 2022.
The ECF funds come with highly concessional terms, featuring zero percent interest and an extended grace period. The ECF is anchored in the Zambian Government’s homegrown economic reforms designed to restore macroeconomic stability, achieve fiscal and debt sustainability, and foster higher, resilient, and more inclusive growth. The program is set to run until October 2025, with regular six-month performance reviews. The next review is scheduled for April 2025.
Reflecting on this pivotal development, Finance and National Planning Minister Dr. Situmbeko Musokotwane welcomed the decision of the IMF Executive Board, noting the country’s economic resilience amid considerable challenges. He expressed gratitude to all stakeholders involved in ensuring the economic transformation journey remains on course, acknowledging positive growth, strong fiscal performance, and continued engagement with creditors on debt restructuring.
Dr. Musokotwane reiterated the government’s commitment to meeting ECF program objectives, calling on citizens and the international community for continued support. Acknowledging the necessity of stringent reform measures, he emphasized their crucial role in creating jobs, fostering private sector growth, and improving livelihoods across all regions.
The successful IMF Executive Board review holds significant importance for Zambia for several reasons:
Endorsement of Economic Reforms: The government’s commitment to economic transformation reforms receives a strong endorsement.
Investor Confidence: The review enhances and sustains investor confidence, positioning Zambia as a preferred destination for foreign direct investment in key sectors.
Resource Unlocking: The approval unlocks resources from other development partners, including the World Bank, African Development Bank, and various multilateral and bilateral partners.
Debt Restructuring: The review strengthens the path to the debt restructuring exercise, aligning with broader policy goals.
The government’s envisaged policy thrust includes fiscal consolidation, improved public financial management, increased social spending, financial stability preservation, and intensified structural and governance reforms to unlock Zambia’s growth potential.
In a virtual press briefing, IMF Chief for Zambia, Vera Martin Mercedes, commended the Zambian government for sustained policies and commitment to macroeconomic and fiscal stability. She acknowledged the government’s significant efforts to address economic challenges and noted that part of the disbursement would go towards budget support and implementation. The third review is expected around June 2024.
@Spaka and Tikki….road blocks have been brought back I am sure you will quickly find an explanation as usual.
Now back to the main topic… isn’t it a shame that Africa and Zambia in particular with all our resources can fail to raise a paltry 100m dollars but have to borrow?
Dollar at K26!!!! This is shameful…This country makes at least $20 million a day from toll gate fees, taxation, NAPSA contributions, council levies, visa fees, road tax etc etc etc how and why should we be in such a situation…no ba UPND you guys need to do better, this is not what I voted PF out for, if there are people in govt taking advantage of a weak Kwacha please identify them and charge them with espionage because what they are doing is worse than thieves who steal copper cables from Zesco.
@ Deja Vu
The truth hurts and both Spaka and TIKKI will insult you….isn’t it mind boggling that a country with natural resources worth trillions still depends on hand outs….
HH in opposition and HH as a President exactly the opposite
It’s a laughably small sum of money. At the most it can only buy you two top premier league footballers in England.
Two premier league footballers Kikikikikikiki! And we only have one!!
Zambia is one of the biggest Cooper producers in the World….Zambia has the biggest waterfalls in the World…not to mention Mukula trees and Sugilite…..The Victoria falls alone if Well Managed is about to bring in 100 million dollars in 6 months….
Harry mwaanga nkumbula Airport needs an upgrade…the Airport road from Harry mwaanga nkumbula Airport to town needs to be expanded and resurfaced….
Zambia has five lakes! Show me another country with more. Yet our tourism industry is the worst in SADC
And Zambia even imports fish!
ARREST BRIAN MUSHIMBA OVER THE FAKE TRAFFIC CAMERAS WITH THE LEBANESE. He’s worth over $1.5 million boasting of buying a $500,000 house in the USA. Extradite him.
When things are bad, nothing seems to matter anymore. Whether we receive the money or not, there is really nothing to show that we are getting somewhere. The nation is paused in deep misery though as usual the politician argues otherwise.
2unye?
Tikki and Spaka,.. people are still waiting for you to explain the reason for the return of check points.
I told you F00ls that the so-called abolishing of road blocks had to do with some criminal activities by the Upnd. Now they have achieved what they wanted they bring back the check points.
We are not children, in fact you are the ones who are children because you are doing things only found in nursery school.
Iwe Deja Vu you think its easy to spin a fib? Tikki and Spaka have to meet with some high ranking Hammersuckers to get a defence strategy into the propaganda machine. That takes as much time as the wait for a judge to rule over whether Sampa’s faction is legal or not. You just need to be patient my friend. That is, Until the meeting of Mweetwa, Kawana, Tikki, Spaka, I hate Kaizar…., Chilyata, Hammersucker and the UPND Info team ends
Yes we have Copper, but it’s not a need like oil. We are living in a Global Village with trade barriers. Which Country are you going to sell your raw natural resources directly to get those imaginary trillions? When just one OPEC member reduces the quantity of oil supply on the World Market, the cost goes up. Try it with Copper and see what happens.
Copper is a need. It is currently very highly priced because there is Ukraine and Hamas wars. Thats why Japan is being drawn into the negotiations process because with less wars their car industry can buy more copper
DejaFOOOOL is one of those dullards who go to church. When the Papa prophesizes that if he drinks engine oil with faith and tithe, he will pray for him to go to heaven. Thereafter, he returns to the Papa and demands to be taken to heaven as prophesized. Can an educated man surely come to HH and demand to buy mealie meal at K50!?.Most people who voted for UPND work hard, They were aware of the prices of inputs and concluded that K50 mealie meal was unstainable ,so they voted overwhelmingly for UPND on other promises which are enshrined in their manifesto and are now painstakingly being achieved
DejaFOOOOL,next time read a party manifesto and vote on it ,not things that are said off-the cuff at a political rally…And go for further studies to improve your grades
off-the cuff at a political rally means they want to put it in their manifesto so it counts
@MuZambian
You sound like a very dull praise singer and you will always go after anyone who criticizes your small god Hakainde Hichilema
These are the guys who came straight from Namwala to Unza where they never socialized. I shared a flat in Kitwe with one of them…the guy could have money and starve because that money wasn’t meant for food. He ended up eating from our food. One day we searched his clothes and took some money, bought food which he also ate. We told him where the money came from…was he mad…only cooled down when we told him we just borrowed and will pay him Monday when we get paid.
Dejavu that made me laugh so hard I woke up my f00lish neighbour from monze
Even the f00Iish upnd cadres are calling me asking for money. This is Christmas under hh. People are struggling.
A need is something one cannot do without Fresha waku ma Ruins.
Exactly Bernard unless you havent followed my answer. For Israel, Ukraine and Russia whom I have cited, right now bullets are a need. Na oil yamene there are times when its not a need. Just three years ago there was a situation where the price of oil turned negative. Sellers were paying buyers to take the oil off their hands. Commodities can fall out of the need bracket depending on whats happening
And your example on OPEC is mostly about quantity of supply by a member group. OPEC’s clout is in being a tight group to influence the price although they are not the only suppliers. Russia and USA are the biggest suppliers of oil
Kaunda, Mobutu and Pinochet did try to influence the price of copper by forming CIPEC in the 70s. Like OPEC, CIPEC aimed to collectively influence the price and market conditions for copper. However the US and Western Europe easily disturbed the CIPEC pricing strategy. So due to the difficulty of managing production quotas and their interfered with pricing agreements they had no clout. Largely because these countries had economic and political priorities vulnerable to Western control so CIPEC folded up.