## Zambia: Technical Assistance Report-Diagnostic Report on Governance and Corruption

_IMF Staff Country Reports, January 10, 2023_

## Source details

**Canonical URL:** [Zambia: Technical Assistance Report-Diagnostic Report on Governance and Corruption](https://www.imf.org/en/publications/cr/issues/2023/01/09/zambia-technical-assistance-report-diagnostic-report-on-governance-and-corruption-527982)

## Other formats

- [Markdown version](/en/publications/cr/issues/2023/01/09/zambia-technical-assistance-report-diagnostic-report-on-governance-and-corruption-527982/index.md)
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## Bibliographic details
- Published: January 10, 2023
- Series: IMF Staff Country Reports
- DOI: https://doi.org/10.5089/9798400228476.002

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### Summary
- This technical assistance report on Zambia discusses the governance and anti-corruption assessment.
- The President and authorities of Zambia have announced a series of important initiatives to address corruption, strengthen governance and the rule of law.
- Consistently high fiscal deficits, inefficient public investment and weak controls on spending led to Zambia accumulating large fiscal and external imbalances.
- In this challenging environment, the authorities sought the IMF’s assistance to:
  - analyse governance weaknesses and corruption vulnerabilities, and
  - make specific, country-tailored and feasible recommendations to address governance and corruption risks in wide-ranging areas.
- The report identifies near-term reform steps and structural policy measures that require more time and resources but are necessary for sustainable change.
- All recommendations coming out of the diagnostic shall contribute to:
  - the formulation of governance and anticorruption policies and programs,
  - improvement of the legal and institutional frameworks, and
  - governance and anti-corruption reform measures agreed to in the Extended Credit Facility Arrangement for Zambia.

### Key findings and themes
- Governance weaknesses and corruption vulnerabilities are material contributors to Zambia’s:
  - large fiscal imbalances,
  - external imbalances, and
  - inefficiencies in public investment and spending controls.
- The assessment covers wide-ranging areas including:
  - Anti-money laundering and combating the financing of terrorism (AML/CFT),
  - Budget planning and preparation,
  - Corporate governance,
  - Public financial management (PFM),
  - Revenue administration and transparency and accountability,
  - Monetary policy and prudential frameworks,
  - Legal and institutional frameworks related to governance and corruption.

### Policy recommendations and reform priorities
- Near-term reform steps:
  - Specific, country-tailored, and feasible recommendations to address governance and corruption risks.
- Structural policy measures:
  - Reforms that require more time and resources but are necessary for sustainable change.
- Expected contributions of the recommendations:
  - Inform governance and anticorruption policies and programs.
  - Improve legal and institutional frameworks.
  - Support governance and anti-corruption reform measures under the Extended Credit Facility Arrangement for Zambia.

### Subject coverage and keywords
- Subjects: Anti-money laundering and combating the financing of terrorism (AML/CFT); Budget planning and preparation; Corporate governance; Corruption; Crime; Economic sectors; International organization; Monetary policy; Public financial management (PFM); Revenue administration; Revenue administration transparency and accountability.
- Keywords: Anti-money laundering and combating the financing of terrorism (AML/CFT); Budget planning and preparation; Corporate governance; Corruption; East Africa; frameworks of Zambia's Revenue Administration; governance arrangement; governance inefficiency; governance Rating; governance weakness; IMF recommendation; IMF resident representative; information framework; prudential framework; Revenue administration transparency and accountability; risk assessment; Southern Africa; terms and conditions.

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## Content in this bundle

- **1zmbea2023001**
  - [1zmbea2023001 (Markdown version)](/-/media/files/publications/cr/2023/english/1zmbea2023001.pdf.md){rel="alternate" type="text/markdown"}
  - [1zmbea2023001 (PDF)](/-/media/files/publications/cr/2023/english/1zmbea2023001.pdf){rel="external" type="application/pdf"}

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_Source: https://www.imf.org/en/publications/cr/issues/2023/01/09/zambia-technical-assistance-report-diagnostic-report-on-governance-and-corruption-527982_