Zambia: Sixth Review Under The Extended Credit Facility Arrangement, Request for a waiver of Nonobservance of a Quantitative Performance Criterion, and Financing Assurances Review-Press Release; Staff Report; and Statement by the Executive Director fo

Despite external and domestic shocks, Zambia has corrected macroeconomic imbalances, reached agreement on most of the external debt under the perimeter of the debt restructuring, and undertaken sustained fiscal consolidation while safeguarding social spending. Economic activity has expanded in 2025 but at a slower pace than initially expected. Despite trending down amid a sharp kwacha appreciation, inflation remains elevated. The strong reform drive under the ECF arrangement has improved international investors’ confidence including through recent upgrades of the sovereign credit rating. Poverty and inequality remain high, and the economic outlook is vulnerable to external shocks, climate events, and domestic political pressures ahead of the 2026 elections.