• This brings total disbursement so far under the ECF-supported program to approximately US$1.1 billion.
• The Extended Credit Facility Arrangement was approved on August 31, 2022, for US$1.3 billion.
• Government anticipates the latest announcement by the IMF to further boost investor confidence and enhance foreign direct investment.

International Monetary Fund (IMF) Executive Board has approved the third review of Zambia’s 38-month Extended Credit Facility (ECF) Arrangement, which triggers an immediate disbursement of approximately US$569.6 million.

A statement issued by the Office of Secretary to the Treasury, indicated that the disbursement includes approval of a request made by the Zambian Government for an additional 30 percent of quota Special Drawing Right (SDR) 293.46 million or US$385.7 million to preserve macroeconomic stability and support response to external shocks, as well as the fourth tranche under the ECF arrangement amounting to US $184.1 million.

It said this brings total disbursement so far under the ECF-supported program to approximately US$1.1 billion, following the Extended Credit Facility Arrangement which was approved on August 31, 2022, for US$1.3 billion.

“The augmentation increases access to about US$1.7 billion to support home-grown Eighth National Development Plan that seeks to entrench macroeconomic stability, attain debt and fiscal sustainability, enhance public governance, and foster inclusive growth to improve the livelihood of the Zambian people, especially the vulnerable,” the statement read.

Government anticipates the latest announcement by the IMF to further boost investor confidence and enhance foreign direct investment.

And IMF Deputy Managing Director and Deputy Chair, Antoinette Sayeh said satisfactory performance under the ECF-supported arrangement and continued focus on economic stabilization and reforms have resulted in stronger-than envisaged fiscal and economic outcomes, and progress on structural reforms.

Ms. Sayeh added that noted that the envisaged public financial management reforms will enhance spending controls, budget execution, and fiscal accountability.

“Nonetheless, the drought has affected a substantial share of the population, and the authorities should continue their commendable efforts to address the humanitarian needs.”

“Going ahead, coordinated macroeconomic policies, continued efforts to restore fiscal and debt sustainability, and consistent reform implementation would be key to addressing the impact of the drought, preserving macroeconomic stability, and bolstering growth,” Ms. Sayeh stated.

She urged the Zambian government to focus on revenue mobilization, including enhancing tax administration and broadening the tax base in view of the significant spending reprioritization in 2024.