PRESIDENT Hakainde Hichilema’s statement that the approval of US$184 million by the International Monetary Fund (IMF) is a testament that Zambia remains on track to rebuilding a stronger and resilient economy carries significant weight.
The approval entails economic credibility and signals international confidence in Zambia’s economic reform agenda and fiscal discipline.
It reinforces Zambia’s credibility in global financial markets, which is crucial for attracting foreign investment and negotiating favourable terms with creditors.
The endorsement reflects Zambia’s successful implementation of structural reforms, including debt restructuring, public sector efficiency, and anti-corruption measures.
It validates the New Dawn government’s efforts to stabilise macro-economic indicators, such as inflation and currency performance.
This kind of funding will provide critical budgetary support, helping Zambia meet its development goals in health, education and infrastructure.
It will also help cushion the economy against external shocks, such as the drought-related energy and food insecurity in the country.
And President Hichilema’s emphasis on resilience aligns with broader goals of economic transformation, including job creation, agricultural modernisation and energy sufficiency.
It underscores Zambia’s commitment to long-term sustainability, not just short-term relief.
The President’s remarks are more than just political optimism – they are a strategic affirmation that Zambia is regaining its footing and building a future that is both inclusive and economically sound.
This IMF’s approval of US$184 million for Zambia under the Extended Credit Facility is a major boost to the country’s economic growth trajectory.
Zambia’s GDP growth is projected to rise to 5.8 percent in 2025, up from four percent in 2024, thanks to renewed activity in agriculture, mining, and services.
The funding therefore will help stabilise the economy after the 2024 drought, ensuring continuity in key sectors like energy and food production.
This disbursement will provide budgetary support, allowing Government to maintain social spending while pursuing fiscal consolidation.
It will help Zambia manage debt obligations and reduce reliance on non-concessional borrowing, which improves long-term debt sustainability.
The IMF’s gesture further validates Zambia’s progress on structural and governance reforms, including anti-corruption, public finance management, and energy sector transparency.
These reforms are essential for creating a more attractive environment for private investment and economic diversification.
In fact, the IMF’s approval sets the stage for transformative long-term impacts across the Zambian economy.
This could shape Zambia’s future as inflation is expected to decline to 11 percent by end-2025, improving consumer purchasing power and macro-economic stability.
The approval will boost investor confidence, encouraging foreign direct investment in mining, energy, agriculture, and digital services.
Infrastructure upgrades – roads, irrigation and energy grids – will support long-term productivity and regional integration.
In principle, the IMF approval of US$184 million is more than a financial injection; it is a strategic endorsement of Zambia’s reform path.
If sustained, it could usher in a new era of inclusive, resilient and diversified growth.
IMF gesture: Validation of Zambia’s reform path
PRESIDENT Hakainde Hichilema’s statement that the approval of US$184 million by the International Monetary Fund (IMF) is a testament that Zambia remains on track to rebuilding a stronger and resilient economy carries significant weight.
The approval entails economic credibility and signals international confidence in Zambia’s economic reform agenda and fiscal discipline.
It reinforces Zambia’s credibility in global financial markets, which is crucial for attracting foreign investment and negotiating favourable terms with creditors.
The endorsement reflects Zambia’s successful implementation of structural reforms, including debt restructuring, public sector efficiency, and anti-corruption measures.
It validates the New Dawn government’s efforts to stabilise macro-economic indicators, such as inflation and currency performance.
This kind of funding will provide critical budgetary support, helping Zambia meet its development goals in health, education and infrastructure.
It will also help cushion the economy against external shocks, such as the drought-related energy and food insecurity in the country.
And President Hichilema’s emphasis on resilience aligns with broader goals of economic transformation, including job creation, agricultural modernisation and energy sufficiency.
It underscores Zambia’s commitment to long-term sustainability, not just short-term relief.
The President’s remarks are more than just political optimism – they are a strategic affirmation that Zambia is regaining its footing and building a future that is both inclusive and economically sound.
This IMF’s approval of US$184 million for Zambia under the Extended Credit Facility is a major boost to the country’s economic growth trajectory.
Zambia’s GDP growth is projected to rise to 5.8 percent in 2025, up from four percent in 2024, thanks to renewed activity in agriculture, mining, and services.
The funding therefore will help stabilise the economy after the 2024 drought, ensuring continuity in key sectors like energy and food production.
This disbursement will provide budgetary support, allowing Government to maintain social spending while pursuing fiscal consolidation.
It will help Zambia manage debt obligations and reduce reliance on non-concessional borrowing, which improves long-term debt sustainability.
The IMF’s gesture further validates Zambia’s progress on structural and governance reforms, including anti-corruption, public finance management, and energy sector transparency.
These reforms are essential for creating a more attractive environment for private investment and economic diversification.
In fact, the IMF’s approval sets the stage for transformative long-term impacts across the Zambian economy.
This could shape Zambia’s future as inflation is expected to decline to 11 percent by end-2025, improving consumer purchasing power and macro-economic stability.
The approval will boost investor confidence, encouraging foreign direct investment in mining, energy, agriculture, and digital services.
Infrastructure upgrades – roads, irrigation and energy grids – will support long-term productivity and regional integration.
In principle, the IMF approval of US$184 million is more than a financial injection; it is a strategic endorsement of Zambia’s reform path.
If sustained, it could usher in a new era of inclusive, resilient and diversified growth.