By Taonga Mitimingi | Updated on Oct 09, 2026 at 04:10 PM
The International Monetary Fund’s board will probably sign off on a $1.47 billion deal for Zambia in December, its mission chief to the southern African nation said, after a staff-level deal was agreed on Friday.
A team from the Washington-based lender, in Zambia since Sept. 29, managed to thrash out an agreement with the government in a relatively short period after August elections.
The new program will focus on driving growth and creating jobs, whereas the previous one that was concluded earlier this year was centered around restoring economic stability as the copper-rich nation negotiated a debt restructuring with its creditors.
“Our message for the new program is very clear,” Edward Gemayel, the lender’s mission chief told reporters in Lusaka, the capital. “Three things: preserving stability, strengthening resilience, and unlocking Zambia’s growth potential for the benefit of all Zambians.”
While Zambia’s economy has strengthened considerably and inflation has fallen sharply, fiscal pressures have intensified in 2026, the Washington-based lender said in a statement earlier on Friday. The new program aims to restore fiscal buffers by increasing revenues and expenditure restraint while protecting priority social spending, it said.
Read More: Zambia to Seal New IMF Deal After August Vote, Minister Says
Zambia has benefited from near-record copper prices through increased production of the metal used in wiring. But surging fuel prices have pushed up costs for the nation that’s fully reliant on imports. Finance Minister Situmbeko Musokotwane also warned that the current strong El Niño weather pattern could bring never-seen-before drought in coming months.
Government spending pressures have also risen in the election year. The Food Reserve Agency had budgeted to buy 500,000 metric tons of corn for its strategic stockpile, but procured more than five times that amount in recent months, according to Musokotwane.
That means the state will have to cut spending in other areas, including travel and funding for parliamentary constituency development, he told reporters. “Then, of course, there is borrowing beyond what was planned.”
The IMF forecasts the economy will expand by 5.6% this year.
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