IMF Backs Zambia's Economic Turnaround — And Wants to Do More

The International Monetary Fund has delivered a landmark vote of confidence in Zambia's economic transformation, confirming that the country has made substantial progress in restoring macroeconomic stability — and expressing interest in a successor partnership to build on those gains.

An IMF staff team, led by Mission Chief Edward Gemayel, concluded a visit to Lusaka on 4th March after a week of high-level engagement with President Hakainde Hichilema, Finance Minister Dr. Situmbeko Musokotwane, and Bank of Zambia Governor Dr. Denny Kalyalya. The findings, published on 5th March, amount to an independent, authoritative endorsement of the New Dawn government's economic record.

The IMF confirmed that public external debt has been largely restructured, international reserves have strengthened, growth has picked up, and inflation has continued to decline — recently reaching the Bank of Zambia's target band. These are not merely statistics. They represent a fundamental reversal of the economic crisis inherited in 2021.

The Fund's statement was unambiguous about what lies behind this progress. "These outcomes reflect sustained reform efforts and have helped reinforce Zambia's credibility with creditors and market participants," Gemayel said.

Zambia’s economic outlook remains positive, with the IMF projecting growth at 5.5 percent for 2026

Perhaps the most significant signal for investors is what comes next. The Zambian authorities have expressed interest in a successor arrangement with the IMF, with initial technical discussions expected to begin as early as late April. A successor programme would deepen the institutional relationship that has underpinned Zambia's debt restructuring and macroeconomic recovery — and send a powerful signal to international markets about the continuity and credibility of Zambia's reform agenda.

The economic outlook remains positive, with growth projected at 5.5 percent for 2026. The IMF's broader priorities for the next phase of engagement are closely aligned with the government's own agenda — strengthening the business climate, broadening the tax base, and supporting private sector-led growth.

For investors watching Zambia, this report confirms what the numbers have been saying for some time: the fundamentals are sound, the creditors are satisfied, and the institutions that matter most are ready to re-engage. Zambia Is Back — and the IMF agrees.