Finance Minister Situmbeko Musokotwane has said Zambia’s latest International Monetary Fund disbursement of $190 million will be split between budget support and the country’s foreign reserves.
Musokotwane said the allocation forms part of the government’s ongoing engagement under the IMF-supported programme. He said the funds will be applied in a manner consistent with the objectives agreed with the Fund, including stabilising public finances and supporting economic management.
According to the report, the minister explained that a portion of the $190 million will go directly toward budget support, while the remaining amount will be directed to strengthening reserves. He said the split is intended to balance immediate fiscal needs with longer-term macroeconomic stability.
Musokotwane said the IMF programme requires government to maintain discipline in public spending and to prioritise areas that support economic recovery. He said the funding is not intended for discretionary use outside the agreed framework and that allocations will follow programme benchmarks.
The minister said the IMF support comes within a broader reform agenda that the government has committed to under the programme. He said the reforms are designed to restore confidence in public finances and improve the country’s capacity to manage external and domestic obligations.
Musokotwane said the allocation to reserves is aimed at strengthening the country’s external position. He said adequate reserves are necessary to support exchange rate stability and to provide a buffer against external shocks. The minister said reserve accumulation remains an important element of the programme.
On the budget side, Musokotwane said the support will assist government in meeting planned expenditures within the approved fiscal framework. He said the funding will help sustain government operations while reforms continue to be implemented.
The report indicates that the minister addressed questions on how the IMF funds would be used and emphasised that transparency and adherence to agreed conditions remain central. He said Zambia’s engagement with the IMF is structured and monitored, with regular reviews forming part of the process.
Musokotwane said the government remains focused on meeting the programme’s performance criteria. He said this includes maintaining fiscal discipline, managing debt obligations, and supporting policies aimed at economic stability.
The minister said the IMF programme is not a standalone intervention but part of a wider approach that includes domestic revenue mobilisation and expenditure controls. He said the government continues to work within the limits set by the programme to ensure sustainability.
Musokotwane also said the government recognises the importance of using external support responsibly. He said the allocation of the $190 million reflects the need to balance competing priorities while remaining within programme commitments.
The report said the IMF disbursement follows continued engagement between Zambia and the Fund, with the government providing updates on policy measures and programme implementation. Musokotwane said the authorities remain committed to the agreed path.
He said the government will continue to provide information on programme progress as reviews are conducted. He said the focus remains on maintaining macroeconomic stability and ensuring that programme objectives are met.
The minister said Zambia’s engagement with the IMF is aimed at restoring confidence and supporting economic management. He said the allocation of the funds is part of that process and will be handled in line with agreed procedures.
What about the missed benchmark for Tanzam ??
This will be gobbled up by the upcoming general elections.
Just after election the dollar rate is likely to go up.