IMF Staff Country Reports

This paper presents IMF’s Fourth Review Under the Arrangement under the Extended Credit Facility and Financing Assurances Review for Zambia. Program performance has remained broadly satisfactory. All June 2024 quantitative performance criteria and most indicative targets for June and September 2024 were met. Fiscal consolidation, prudent monetary policy and further reserve accumulation, exchange rate flexibility, and sound financial policies will be crucial for safeguarding macro-financial stability and building resilience against shocks. Zambia’s public debt is assessed as sustainable but remains at high risk of overall and external debt distress. Governance and structural reforms are vital for promoting private sector activity and economic diversification. The authorities remain committed to maintaining macroeconomic stability and restoring fiscal and debt sustainability, while supporting vulnerable households and advancing structural and governance reforms to foster growth. Enhancing transparency in the energy sector and resource management, strengthening anti-corruption measures, continuing agriculture reform, alongside building climate resilience, will improve the business climate and support sustainable and more inclusive growth.