Zambia has successfully concluded the second review mission under the Extended Credit Facility (ECF) Programme with the International Monetary Fund (IMF). The collaborative effort resulted in a Staff-Level Agreement (SLA) on economic and financial policies that will guide program implementation for the next 12 months, pending approval by the IMF Management and the Executive Board.
This is according to a statement issued by the Office of the Secretary to the Treasury,Ministry of finance and National Planning.
The agreement, once approved by the IMF Executive Board, is set to trigger the release of approximately $184 million, marking a significant milestone in Zambia’s ongoing economic reform journey. IMF staff praised Zambia for the substantial progress made in restoring macroeconomic and debt sustainability, as well as the effective implementation of the national economic reform agenda.
Zambia’s commitment to ambitious structural reforms has notably improved domestic revenues, strengthened public finance and debt management, and enhanced transparency. The government’s ability to allocate resources to essential sectors like healthcare and education while supporting the vulnerable population has been acknowledged as a positive outcome of the reform initiatives.
The IMF Programme serves as vital support for the Zambian government’s objectives, focusing on achieving fiscal and debt sustainability, reducing poverty, and establishing a solid foundation for inclusive and sustainable growth. The SLA achieved during the second review is a crucial step in Zambia’s collaboration with the IMF and its ongoing efforts toward economic recovery.
Commenting on the development, Dr. Situmbeko Musokotwane, Minister of Finance and National Planning, expressed satisfaction with the achievement of the SLA. He emphasized Zambia’s dedication to restoring macro and debt sustainability and continuing efforts to align the debt restructuring agreement with the IMF program parameters.
“The achievement of the SLA reflects Zambia’s commitment to restore macro and debt sustainability and to continue efforts to reach an agreement in the debt restructuring that is consistent with the IMF program parameters. We are pleased to see that the IMF continues to recognize the ongoing work we are doing to reinvigorate Zambia’s economy and attain sustainable growth,” stated Minister Musokotwane.
Zambia remains engaged in close consultations with its creditors to expedite the debt restructuring process, aligning it with the broader objectives of the IMF program.
The IMF approved an ECF program for Zambia in August 2022. The program involves scheduled regular reviews to assess performance in areas such as restoring fiscal and debt sustainability, improving debt management and transparency, strengthening governance and financial stability, and reducing corruption vulnerabilities. The successful completion of the second review follows the approval of the first review in April 2023, unlocking the second disbursement of approximately US$188 million to Zambia.
emmanuel plz stop publishing lies regarding IMF. After all you dont attend those meetings and you’re not a spokesman for the team. otherwise kudos to hh, fince minister and his team for their effective work
Actual story: Zambia’s dollar bonds and currency plummeted on Monday after official creditors vetoed a revised deal between the government and private investors to restructure $3 billion of debt. The rejection drew an acrimonious rebuke from the external bondholder steering committee, which said the position taken by the official creditors was “extraordinary” and would have “significant adverse consequences, most immediately for Zambia.”
Before it’s here, it’s on the Bloomberg Terminal
The main criticism is that the IMF is calling for austerity which shall exacerbate the problem and leave Zambia susceptible to domination via foreign corporate entities.
This is economic slavery in progress and nonsensical.
We are paying the price for the looting and irresponsible government of PF. We would not be in this position if those animals had not taken the government from owing almost nothing to being US $31 billion in debt. Arrest them all
@Emmanuel: Why and where did PF take those loans? This is a self inflicted injury from the tribalist thieves who constitute PF. Arrest Lungu and use his assets to address the pain Zambians are having to go through.
The international news papers are saying a different story but our minister of finance is saying the opposite
emmanuel plz stop publishing lies regarding IMF. After all you dont attend those meetings and you’re not a spokesman for the team. otherwise kudos to hh, fince minister and his team for their effective work
This is a step in the right direction kudos to the govt and the President but once that money comes through, let us guard it closely at BOZ and not allow the commercial banks to swallow it. I repeat let us not allow the majority of those funds to find their way to the commercial banks. That money must remain with the bank of Zambia and it us please add those funds to our reserves. The other challenge we are having is we want to impress everyone which must stop Mwanawasa was successful because he cut down on the civil service numbers and that is the only way we can reduce govt expenditure, the wage bill is impacting the economy greatly.
They have failed. Those saying pf is to blame for debts accrued, then leave government so that we come in and do what you have failed. Eeembwa
@Kaizar Kamyanga-nyoko Zulu: Only blind tribalists would ever support anything you said. The mess HH is trying to fix was caused by you. Since we have you, one of the criminals who are responsible, can you explain to us what you did with the US $31 billion that you borrowed in a mere 10 years? This is the cause of all the problems. The Shylocks are in for their pound of flesh, mathafaka, and you caused this.
We will never allow your PF to return Zambia cannot affort another 10 yrs of reckless, unruly, and violent behaviour .. Gassing just one to mention
A failed self proclaimed economist. A privatization thief trying to ran a country. Fuel @29, mealie meal @k330,fertilizer @k1200, no medicines in hospitals. We are looking at a failed thief
Agree very much. PF shouldnt be allowed to return. They are incompetent and hungry for a quick buck and do not present anything new especially for freedom of speech, freedom of assembly, separation of powers. We will just be perpetuating tribalism and slavery, the same tribalism and slavery UPND is subjecting us to; random arrests of opposition leaders just to bully them. Even their speaker is busy bullying the opposition. Which opposition party is offering something new?
@kci: You are a hypocrite or a deliberate amnesiac; Your relatives in PF found Zambia nearly free of debt and having $3.8 billion in two accounts. Michael Satan immediately stole all of that money to never be seen again, in keeping with how these people are. He was not satisfied and started borrowing and stealing more. Fortunately, God intervened and killed that evil animal. Unfortunately, its more nephew, Jonathan “Edgar Lungu” Mutawire took over and raised the looting to a higher level. The crude animal went on a borrowing spree, and by the time the voters of Zambia dislodged it from power, it had amassed an unpayable US $31 billion in debt. This is what HH is struggling with. All the high prices are the fault of PF
Zambia was told the Fund will effectively help us negotiate Zambia’s debt restructuring deal. More than two years of UPND we are still discussing the 2020 debt default.
‘The IMF approved a tweaked deal, but official creditors again rejected it’. It looks like we have had a raw deal championed by IMF greed who seemingly favour private lenders on bonds. No wonder it hit a snag.
@My Zambia: Why did Zambia default in 2020 and who caused it? You people are incredible. You want to blame HH for the problem you caused by borrowing unpayable amounts of money, and stealing them, in keeping with your nature. You think the foreigners gave all those unpayable loans because they loved you? The gave the loans as bait, and once you were hooked, they could come in and collect everything we own mathafakas. It is 100% your fault. You caused this problem. You should shut up and stop blaming those who had nothing to with you caused, and are trying their best to fix the problem. The only wrong HH has done is not putting your asses in jail for what you did to Zambia
Please learn to appreciate these people in UPND they have done a lot of excellent jobs for us only a person who cannot think properly cannot appreciate them. They gave us partial withdraw and bult house though went on drink spree as usual.
Even the mill meal people are complaining about it is sorted in long term permanently by raising the maize and this is one way to encourage commercial farmers to grow more maize, suppose next Zambia record a bumper harvest of ten million tons and since we are currently consuming three million tons don’t you think that the excess can be sold at premium price which can be used to wipe out our current debts. Just multiply seven million tons at a price of USD Five thousand per ton
@ Peace Maker, 10 million tonnes? What would it take to produce that? It is not just a matter of dreaming figures colleague. Let us be realistic. Currently the 3.2 metric tonnes is being called bumper harvest. What will you call your 10 million and with which inputs if with the current support programme we are only able to produce about 3.2. There is more investment needed in the sector through mechanization.
@Peace Maker: They are driven by tribalism, and are angry at UPND for having a government in which all provinces and tribes are represented. They want what they have always done, which is a government of their own tribes only. They know that HH had nothing to do with the economic mess Zambia is in, as they caused it. They crying about the economy because it is the way they want to promote their tribal agenda. If you understand that tribalism is what drives them, you do not need to understand anything else. If you do not understand that tribalism is their operating system, everything about them will confuse you
Bwana Timbwi here I’m talking about commercial farmers who own big farms not temba farms with FISP here, these are the one who are motivated by the new maize floor pricing. Remember that farming is a busy you make profit from a good selling price that can cover the production cost, and anything remains after direct and indirect cost we call it profit. Which also tax it at 10%
Previous the situation was like when you try calculating the bottom figure you always end up with a loss if you like it that way.
That is what discouraged the commercial farmers and shun the production of maize. Remember these do not really depend on natural rainfall they use irrigations methods.
Hunger Hinde can’t eat food prepared by black chefs in his own country, but busy mulyo for white chefs? Inferiority complex is sickening
Well done UPND. For three years PF failed to kickstart any talks with lenders. Even after hiring Lazard of France.The progress made in two years is outstanding. PF was/is cursed. How can a govt gass it’s own citizens? Let’s get to the bottom of the gassing criminality
If you depends for foreign entities to manage your finances then you are not sovereign at all.
You even have to seek approval to run tailored projects! So shameful eeh.
IMF
@ Iwe. The irresponsible PF government at it’s own behest went on on borrowing spree from foreigners (westerners and Chinese). Now the foreigners want their money with interest back. Its now UPND’s responsibility to sort out the the ECL’s PF economic mess. In 2011 Zimbabwe GDP was 14 billion USD, Zambia was 28 billion USD. In 2021 Zimbabwe GDP had climbed to 56 billion USD and is now reached 66 billion USD. Meanwhile in 2021 Zambian GDP had regressed to 22 billion USD. All the will PF was busy printing kwacha and dishing it to cadres. We all saw those videos with cadre with rooms filled with ill-gotten cash before elections. Personally I cannot and will never forgive PF. A bunch of criminals who gassed their own citizens whom they swore to protect. Evil.
Well stated Swahili Unity.That’s the brutal truth about the rotten 10yr PF misrule.
@Swahili for the Unity of Africa: They do not want to hear the truth. They simply want to loot.