IMF Zambia support deal expected after August elections
IMF talks with Zambia could start in April with a deal expected after August elections. Growth forecasts are cut as fiscal pressures from election costs rise.
The International Monetary Fund (IMF) has announced that technical discussions regarding a new support program for Zambia are slated to begin in April, though a final agreement is not anticipated until after the nation’s general elections in August. This timeline follows the conclusion of the previous IMF program in January, which saw total disbursements of $1.7 billion to support the country through its debt-restructuring efforts. According to a statement released at the end of a staff mission, the IMF observed that the Southern African nation has made substantial progress in restoring macroeconomic stability under the recently completed arrangement. While the authorities have expressed a clear interest in a successor program, the Fund expects deeper engagement to occur once a new government is seated following the electoral cycle. President Hakainde Hichilema is currently seeking a second term in the upcoming August vote. The IMF maintained a positive economic outlook for Zambia, although it revised its growth projections downward for 2025 and 2026 to 4.5% and 5.5%, respectively. Despite the optimistic long-term view, the mission identified several emerging fiscal challenges that could impact the budget framework. The Fund noted that these pressures, particularly those linked to the public sector wage bill and agricultural subsidies, are being monitored closely as the country prepares for the transition into its next phase of economic management. > While the 2026 budget framework targets a strong primary surplus, early signs of slippage have begun to emerge, reflecting spending pressures related to the wage bill, government support to the agricultural sector, and election‑related expenditures.
