🇿🇲 Hichilema secures IMF loan deal after re-election

Zambia and the International Monetary Fund agreed in principle on 9 October to a US$1.47 billion 36-month Extended Credit Facility for President Hakainde Hichilema’s government, pending IMF board approval. The package includes structural reforms, privatisation of state-owned enterprises and higher taxes, with IMF mission chief Edward Gemayel saying ministers committed to gradually raising the primary surplus to 3% of GDP by 2029 through stronger revenue collection, improved tax administration and reduced tax exemptions.

The agreement was announced after Hichilema’s disputed 12 August re-election, following delays linked to the political sensitivity of tax rises and inflation. The IMF said Zambia is entering the new programme from a position of strength, forecasting 5.6% economic growth in 2026, while Finance Minister Situmbeko Musokotwane has projected government spending to rise by 7% in the 2027 budget.

#Zambia

🔸 Source

@africaintel