TRYNESS TEMBO
Lusaka
MINISTER of Finance and National Planning Situmbeko Musokotwane has described Zambia’s debt restructuring under the International Monetary Fund (IMF) programme as a rare success story on the African continent.
Last week, Government announced that it would not pursue a one-year extension of the current Extended Credit Facility (ECF) with the IMF, contrary to earlier indications.
Speaking at a town hall meeting yesterday, Dr Musokotwane said IMF programmes were difficult to implement because they required tough adjustments to livelihoods and the management of public resources.
“This is very rare across Africa.
We are proud to have implemented this programme successfully, period after period, without disengagement.
It is a model of fiscal responsibility, social investment and sustainable development,” he said.
Dr Musokotwane noted that many countries struggle to stay on IMF programmes because of the difficult reforms involved, adding that Zambia itself had previously been inconsistent in its engagement with the Fund.
“But this particular programme is one I am very proud of,” he said.
He attributed the success to prudent public financial management under the Eighth National Development Plan, which focuses on debt stabilisation, fiscal discipline and redirecting resources to sectors with the greatest impact on vulnerable populations.
Dr Musokotwane said Government had shifted spending away from lowimpact areas such as excessive fuel subsidies to programmes benefiting young people, education and broader social development.
He dismissed fears that fiscal discipline will lead to salary freezes or cuts in public services, stressing that Government has maintained public sector stability while eliminating waste and improving efficiency.
Secretary to the Treasury Felix Nkulukusa said Zambia’s total budget, after last year’s supplementary allocation, stood at K233 billion, with actual revenue collection at K223.6 billion – just four percent below target.
He said the outturn demonstrated strong budget credibility, well within acceptable margins.
Mr Nkulukusa added that the IMF-supported programme has delivered macroeconomic stability, debt restructuring, increased investor confidence and improved access to concessional financing.
He also cited strengthened governance, institutional reforms and improved transparency in public financial management, noting that monthly and quarterly debt and expenditure updates are now publicly available.
Mr Nkulukusa projected Zambia’s economic growth to exceed the sub-Saharan Africa average, with GDP expected to grow by 6.4 percent in 2026, 6.5 percent in 2027 and 5.1 percent in 2028.
He said the growth, driven largely by the private sector, is expected to generate jobs and increase incomes.
“Zambia is expected to outperform its regional peers as growth becomes more resilient, supported by rising mining production, restored debt sustainability and effective macroeconomic and structural reforms,” he said….https://enews.daily-mail.co.zm/
