Zambia, IMF reach staff-level agreement on economic, financial policies

By James Kunda

LUSAKA, Zambia (AA) - Zambia and the International Monetary Fund (IMF) reached a staff-level agreement (SLA) Monday on economic and financial policies that will anchor program implementation for the next 12 months.

The deal followed the second review mission under the $1.4 billion Extended Credit Facility (ECF) program obtained from the fund by the southern African nation in 2022.

"The SLA is subject to approval by IMF management and the executive board. Approval by the IMF executive board will trigger the third disbursement of about $184 million," said a statement issued by Treasury Secretary Felix Nkulukusa.

Nkulukusa said the fund commended Zambia for substantial progress in restoring macro and debt sustainability and implementing the national economic reform agenda.

"Zambia’s ambitious structural reforms have contributed to raising domestic revenues, strengthening public finance and debt management and increased transparency. The government was also able to finance vital social spending on healthcare, education and support for the most vulnerable," he added.

Commenting separately, Finance and National Planning Minister Situmbeko Musokotwane said the program provided much-needed support for the government to achieve fiscal and debt sustainability, reduce poverty and lay a solid foundation for inclusive and sustainable growth.