Zambia's Resilience and Reform: A Journey Towards Economic Stability
In a recent visit to Lusaka, Zambia, an International Monetary Fund (IMF) team led by Ms. Mercedes Vera Martin delved into the country's economic landscape, focusing on the progress and challenges of the Extended Credit Facility (ECF) program.
But here's where it gets controversial... Zambia's economy, despite last year's drought, has shown remarkable resilience. Real GDP growth in 2024 and the first half of 2025 was impressive, driven by a bumper maize harvest and robust mining production. However, the path to economic stability is not without its hurdles.
The IMF team's discussions with Zambian authorities centered on the need for policy reforms to advance the ECF-supported program. While progress has been made, challenges remain, particularly in the financial sector, state-owned enterprise governance, and anti-corruption measures.
And this is the part most people miss... The Zambian government is committed to preserving macroeconomic stability and sustaining growth. Fiscal consolidation efforts are underway, and the authorities are determined to maintain this momentum to rebuild buffers and ensure the benefits of stability reach every Zambian.
The IMF mission team, comprising experts in economics and finance, met with key stakeholders, including the Minister of Finance and National Planning, Dr. Situmbeko Musokotwane, and representatives from the private sector and civil society. Their findings and recommendations will be crucial in shaping Zambia's economic future.
As the discussions continue virtually, the IMF team will prepare a report, subject to management approval, for presentation to the IMF's Executive Board. This report will outline the preliminary findings and the path forward for Zambia's economic journey.
So, what do you think? Is Zambia on the right track towards economic stability? Share your thoughts and let's spark a discussion on the challenges and opportunities facing this resilient nation.
