Zambia has reached a staff-level agreement with the International Monetary Fund on a new US$1.472 billion programme, Finance Minister Situmbeko Musokotwane said on Friday, closing a week of negotiations in Lusaka and opening the path to the country's next IMF-supported programme.
The proposed 36-month arrangement, equivalent to SDR 1.076 billion, would support the budget and the balance of payments while safeguarding debt sustainability, Dr Musokotwane said. He was flanked at the briefing by Bank of Zambia Governor Denny Kalyalya and, per Mwebantu's report, IMF mission chief Mercedes Vera Martin. The agreement remains subject to approval by IMF management and the Executive Board, and to the completion of prior actions by the Government.
The Fund's statement, carried by Reuters, said the arrangement would support Zambia's efforts to safeguard macroeconomic stability and debt sustainability as well as its balance-of-payments and fiscal financing needs. The previous US$1.7 billion programme — credited with helping Zambia emerge from the debt crisis that followed its 2020 default, Africa's first of the pandemic era — expired in January.
The numbers the Fund will hold Zambia to
The IMF projects the economy to grow 5.6 percent in 2026, driven by agriculture, mining and exports. Annual inflation fell to 6.1 percent in September, inside the Government's 6-to-8-percent target band, and international reserves have risen to about US$6.1 billion.
Under the programme, the Government plans to raise the primary fiscal surplus progressively to 3 percent of GDP by 2029, starting in 2027, through stronger revenue mobilisation, improved tax compliance, rationalised exemptions and more efficient spending. Reforms would also tighten oversight of the Food Reserve Agency, state-owned enterprises and public-private partnerships, improve debt management, and clear payment and value-added-tax refund arrears while protecting social spending.
We have stabilized the economy. We must now grow it.
— Finance Minister Situmbeko Musokotwane, at Friday's briefing in Lusaka, quoted by Mwebantu
Dr Musokotwane said the goal was not simply to secure an IMF programme but to build an economy measured by jobs, stronger businesses, opportunities for young people, reliable electricity, better public services and higher household incomes. The programme would support President Hichilema's Grow Zambia agenda, which prioritises investment, production, value addition and exports across agriculture, mining, manufacturing, tourism, energy and infrastructure, and the Government would translate the strategy into specific actions with measurable targets and timelines, with regular public updates.
The timing matters at home. The agreement lands as the Treasury prepares the 2027 budget — the finance ministry said this week that government spending is projected to rise by 7 percent — and it gives that budget an external anchor before it is even tabled.
The programme at a glance
- US$1.472 billion — 36-month Extended Credit Facility (SDR 1.076 billion)
- Still to come: IMF management and Executive Board approval, plus prior actions
- 5.6% — IMF growth projection for 2026; inflation 6.1% in September
- 3% of GDP — target primary surplus by 2029, from 2027
- US$6.1 billion — international reserves
Confirmed vs. alleged
Confirmed: A staff-level agreement on a 36-month ECF worth SDR 1.076 billion (about US$1.472 billion) was announced on Friday 9 October, per the Finance Minister's briefing reported by Mwebantu and the IMF statement carried by Reuters via CNBC Africa. The previous US$1.7 billion programme expired in January.
Alleged or unverified: When the Executive Board will vote, and the full list of prior actions Zambia must complete first — neither has been published. The detailed conditionality of the programme is not yet public.
Sources: Mwebantu, “Zambia reaches $1.47 billion staff-level agreement with IMF” (10 Oct 2026); CNBC Africa, “IMF reaches staff-level agreement with Zambia on new credit facility” (10 Oct 2026).