Public Management

Zambia reaches staff-level agreement with IMF for a 3-year program

Zambia reaches staff-level agreement with IMF for a 3-year program
Monday, 06 December 2021 14:23

Zambia has reached a staff-level agreement with the International Monetary Fund (IMF) for the implementation of an Extended Credit Facility (ECF), the institution announced in a statement published last week.  

With financing of $1.4 billion, this new economic program, if validated by the IMF Board, should extend over three years between 2022 and 2025. It “is based on the authorities’ plans to undertake bold and ambitious economic reforms,” the Fund said. Although the details of the reforms to be implemented have not yet been announced, they are expected to consolidate Zambia's public finances and, in particular, stabilize the level of public debt.

At the end of 2020, the country defaulted on the repayment of three Eurobonds and asked its creditors for a new grace period. Before the request is accepted, the creditors require Zambia to reach a deal with the IMF.

As a reminder, IMF estimates Zambia’s public debt at 101% of GDP and the World Bank estimates its stock of external debt at 120% of GDP in 2020. Over this period, the Zambian economy entered a -3% recession due to drought, difficulties in the mining sector, and the Covid-19 pandemic. 

With its economic recovery strategy, President Hakainde Hichilema seeks to send a positive signal to financial partners and has already announced ongoing discussions with the IMF and World Bank. Under former President Edgar Lungu, the government tried several times to implement austerity measures to reduce the public debt burden, but without success. For 2021, the IMF expects the country's economic growth to recover only slightly to 1% compared to last year.

Moutiou Adjibi Nourou

Additional Info

  • communiques: Non
  • couleur: N/A
On the same topic
Ivory Coast adopted two draft laws to reform banking and microfinance regulations. The banking reform introduces Islamic finance, fintech companies and...
Gabon created a National Public Debt Committee to oversee debt policy, coordination and control. The government also launched an audit to determine the...
The World Bank approved a $225 million program to strengthen healthcare, nutrition and early childhood development in Ivory Coast. The program...
Mobile microloans reach 897,021 in CEMAC, totaling CFA14.45 billion Growth driven by mobile money expansion, fintech partnerships, automated...
Most Read
01

Mediterrania Capital bought Australian Amcor's Moroccan packaging unit Enko Capital took ov...

Two Other African-focused Private Equity Firms to Snap Up assets shed by Global Majors
02

Standard Chartered arranges $2.33 billion for Tanzania railway project Funding support...

Tanzania Secures $2.33 Billion in Syndicated Financing for Standard Gauge Railway
03

Central bank to release $1 billion in cash to curb black market demand Move aims to ease inf...

Libya Opens Dollar Sales to Ease Pressure on Dinar and Prices
04

From WHO-led efforts to strengthen pandemic preparedness to measles vaccination drives in Uganda, al...

Weekly Health Update | Africa Steps Up Pandemic Preparedness as Health Sovereignty Takes Center Stage
05

Jetour to produce T1, T2 SUVs in South Africa from 2027 Chery to acquire Rosslyn plant, cre...

Chinese Automaker Jetour to assemble SUVs in South Africa from 2027
Enter your email to receive our newsletter

Ecofin Agency provides daily coverage of nine key African economic sectors: public management, finance, telecoms, agribusiness, mining, energy, transport, communication, and education.
It also designs and manages specialized media, both online and print, for African institutions and publishers.

SALES & ADVERTISING

regie@agenceecofin.com 
Tél: +41 22 301 96 11 
Mob: +41 78 699 13 72


EDITORIAL
redaction@agenceecofin.com

More information
Team
Publisher

ECOFIN AGENCY

Mediamania Sarl
Rue du Léman, 6
1201 Geneva
Switzerland

 

Ecofin Agency is a sector-focused economic news agency, founded in December 2010. Its web platform was launched in June 2011. ©Mediamania.

 
 

Please publish modules in offcanvas position.