Zambia starts IMF talks on successor ECF aimed at growth, investment and jobs

# What's happening An IMF mission led by Edward Gemayel is in Lusaka through Oct. 10 to negotiate a successor program under the Extended Credit Facility (ECF). The Ministry of Finance and National Planning says the new program will emphasize growth, investment and job creation while preserving macroeconomic stability and debt sustainability.

# Why this matters now Zambia completed a 38‑month ECF approved on Aug. 31, 2022, which concluded Jan. 27 after six reviews. That arrangement provided an initial allocation of 978.2 million Special Drawing Rights (SDR) — about $1.3 billion — and a final disbursement of 138.9 million SDR (about $190 million), bringing total access to 1.27 billion SDR (roughly $1.7 billion), equal to 130% of Zambia's IMF quota. The government wants the successor program to build on that stability but put growth and jobs at the center of policy.

# Who is involved Situmbeko Musokotwane and ministry officials. The mission will also meet the Bank of Zambia, the Zambia Revenue Authority and other public institutions. Gemayel is accompanied by outgoing IMF resident representative Eric Lautier and other senior officials. Musokotwane attended with Secretary to the Treasury Felix Nkulukusa, Permanent Secretary for Economic Management and Investment Mulele Mulele, and Permanent Secretary for Budget and Resource Mobilization Mwaka Mukubesa.

# What the successor program will focus on The ministry says the successor program will:

• Preserve macroeconomic stability and safeguard debt sustainability
• Prioritize sustainable, inclusive growth driven by the private sector
• Encourage export‑oriented expansion and economic diversification
• Support investment and job creation

Minister Musokotwane framed the government's five‑year focus as maintaining fiscal and macroeconomic stability with a strong bias toward growth. He highlighted youth unemployment as a major challenge and said stronger investment and sustained growth are critical to tackle it. The government plans to combine supportive policies with direct investor engagement.

# The Grow Zambia strategy and its four pillars Musokotwane outlined four pillars that will guide the growth agenda and the proposed IMF engagement:

• Export‑led growth: Zambia's domestic market is relatively small, so outward‑oriented growth is seen as essential to generate foreign earnings and expand domestic demand.
• Foreign direct investment (FDI): Zambia intends to pursue FDI deliberately to bring capital, technology and market access that can accelerate structural transformation and reduce poverty.
• Human capital development: Skills policy will extend beyond university degrees to occupational competence for roles such as artisans, operators, plumbers, mechanics and technicians to meet industry needs.
• Regulatory and governance improvements: Rules that attract FDI while enabling domestic firms to start, expand and compete.

Musokotwane said macroeconomic management under the successor program should support higher investment, productive capacity, exports and employment without reversing the stability achieved under recent reforms.

# What will be negotiated next The mission will examine economic and structural policies that would anchor the program, including the 2027 national budget and the 2027–2029 Medium‑Term Budget Plan. Those discussions will shape conditionality, reform priorities and sequencing tied to the IMF support package.

# Bottom line