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

This paper presents Zambia’s Sixth Review under The Extended Credit Facility (ECF) Arrangement, Request for a waiver of Nonobservance of a Quantitative Performance Criterion, and Financing Assurances Review. Zambia’s economy has shown economic strength amid external and domestic shocks. Discussions focused on how to preserve the gains achieved under the program, continuing with policies that support macro-financial stability and debt sustainability. Revenue-based fiscal consolidation, a monetary stance to anchor inflation expectations, and strengthened financial policies are critical for maintaining economic stability given Zambia’s vulnerability to shocks. Continued reforms are essential to safeguard macroeconomic stability, and debt and fiscal sustainability. With the ECF arrangement having been successfully completed, policy focus in 2026 remains on maintaining fiscal discipline and policy credibility to consolidate the hard-earned gains. Structural reforms should prioritize improving governance, accountability and the rule of law and fostering a level-playing field for private sector development to promote structural transformation and more inclusive growth. Preserving policy credibility would be key, especially in an electoral year.