The International Monetary Fund (IMF) announced on Thursday that discussions with Zambia regarding a new loan program could commence in April, though any agreement is not expected until after the country’s general elections in August.
Zambia’s previous IMF program, a $1.7 billion facility agreed in 2022, concluded in January. The southern African nation has made significant strides since its 2020 default, including restructuring debt with all creditors and attracting new investment in its copper mining sector.
President Hakainde Hichilema, who is anticipated to seek a second term, has indicated interest in securing a new IMF package to continue stabilizing the economy. The IMF projects Zambia’s GDP growth to reach 5.5% in 2026, supported by strengthened foreign exchange reserves and renewed investor confidence.
The upcoming loan discussions are expected to focus on sustaining fiscal stability, managing public debt, and supporting Zambia’s economic recovery following the challenges of the past few years.
