• Zambia seeks a 12-month extension of its $1.7B IMF program beyond October 2025.
• The extension supports reforms for economic stability and debt sustainability.
• Zambia has restructured major debts, with talks ongoing with remaining creditors.

Zambia's government announced Wednesday, July 30, that it is considering a 12-month extension for its financial program with the International Monetary Fund (IMF), set to expire at the end of October 2025.

"Cabinet has authorized the Minister of Finance and National Planning to request a 12-month extension of the International Monetary Fund (IMF) Extended Credit Facility (ECF)-supported Arrangement," the statement read. "The objective is to consolidate the gains achieved during the Programme period into 2026 and help support the ongoing home-grown reform agenda."

The IMF initially approved a $1.3 billion Extended Credit Facility (ECF) for Zambia in August 2022. The total amount later increased to $1.7 billion in June 2024, with approximately $1.55 billion disbursed so far.

The program supports the country’s Eighth National Development Plan, focusing on several priorities. These include consolidating macroeconomic stability, restoring debt and public finance sustainability, strengthening governance, and promoting inclusive growth to improve livelihoods.

Zambia defaulted on its external debt in 2020. In February 2021, the mineral-rich southern African country requested restructuring of its roughly $13 billion external debt under an initiative proposed by the Group of Twenty (G20) leading economies for the world’s poorest countries.

Zambia has already reached debt restructuring agreements with its official creditors and eurobond holders. It continues to finalize reprofiling terms with smaller creditors, including the African Export-Import Bank (Afreximbank).

Walid Kéfi