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 for Zambia
February 2, 2026
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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.
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.
Subject: Arrears, External debt, Foreign exchange, Public debt
Keywords: Arrears
Pages:
140
Volume:
2026
DOI:
Issue:
021
Series:
Country Report No. 2026/021
Stock No:
1ZMBEA2026001
ISBN:
9798229034838
ISSN:
1934-7685
