IMF says Zambia programme talks may stretch beyond August elections

The International Monetary Fund said on Thursday that technical discussions with Zambian authorities over a new support programme could start in April but that agreement on a new deal was only expected after August's elections.

Zambia's most recent IMF programme ended in January, with total disbursements of $1.7 billion supporting the Southern African country as it emerges from a protracted debt-restructuring process.

"Zambia has made substantial progress in restoring macroeconomic stability under the recently completed IMF-supported programme," the IMF said in a statement at the end of a staff mission.

"The authorities expressed interest in a successor arrangement with the IMF. Initial technical discussions could begin as early as late April, with more engagement expected after the general elections once a new government is in place."

Positive economic outlook

Zambia's President Hakainde Hichilema will seek re-election for a second term in August.

The IMF said the economic outlook for Zambia remained positive, though it said it had revised down its growth projections for 2025 and 2026 to 4.5% and 5.5%, respectively.

"The mission also discussed emerging fiscal pressures. 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," the Fund's statement continued.