The International Monetary Fund (IMF) said on Thursday (5) that technical discussions with Zambian authorities on a new support program could begin in April, but that an agreement on a new understanding is only likely to be reached after the August elections.
Zambia’s most recent program with the IMF ended in January, with total disbursements of $1.7 billion, supporting the southern African country as it emerges from a prolonged debt restructuring process.
“Zambia has made substantial progress in restoring macroeconomic stability under the recently completed program with IMF support,” the institution said in a statement released at the end of a technical mission, according to Reuters.
“The authorities have expressed interest in an agreement with the International Monetary Fund. Initial technical discussions could begin as early as the end of April, with further engagement expected after the general elections, when a new government is in place.”
Zambian President Hakainde Hichilema will run for re-election for a second term.
The international financial institution also stated that the economic outlook for the southern African country remains positive, although it has revised its growth projections for 2025 and 2026 downwards to 4.5% and 5.5%, respectively.
“The mission also discussed emerging fiscal pressures. Although the budgetary framework for 2026 points to a strong primary surplus, early signs of slippage are beginning to emerge, reflecting expenditure pressures related to the wage bill, government support for the agricultural sector, and election-related spending,” the Fund’s statement added.
