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
• Fily Sissoko will oversee a $8.5 billion World Bank portfolio spanning Mozambique, Madagascar, Mauritius, Comoros, and Seychelles.• His mission...
• Bassirou Diomaye Faye denounces credit rating agencies’ methodologies as ill-suited to African contexts.• Senegal urges reforms to enable fairer...
(AfDB)-The Board of Directors of the African Development Bank Group has approved a $474.6 million loan for South Africa's Infrastructure Governance...
New card enables African payments without using US or European networks Aims to lower costs, protect financial data, and boost intra-African...
Most Read
01

Lebara Group is now bringing its affordable and reliable mobile services to Africa, starting with Ni...

Telecoms: Lebara Enters Nigerian Market with Strong Competitive Ambitions
02

• Gates Foundation commits $1.6 billion over five years to Gavi.• Bill Gates warns of rising ch...

Gates Foundation Pledges $1.6 Billion to Gavi to Boost Global Child Vaccination
03

Transport and food prices have been climbing steadily across Africa in recent years. In Côte d’Ivoir...

Côte d’Ivoire’s Fuel Price Cuts Haven’t Slashed Transport Costs–Yet
04

In a West African financial landscape marked by tighter regulation of the fintech sector, digital fi...

In Five Years, Francophone Africa Will be A Major Force in African Tech –Régis Bamba
05

• Maritime sector faces renewed risks amid military tensions in the Middle East• Blockade fears at S...

Israel-Iran conflict raises new threats for global shipping and oil trade
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

Benjamin FLAUX
bf@agenceecofin.com 
Téls: +41 22 301 96 11 
Mob: +41 78 699 13 72
Média kit : Download

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.