🇿🇲 Hichilema secures in-principle IMF deal after re-election

Zambia agreed in principle on 9 October to a US$1.47 billion IMF loan under a 36-month Extended Credit Facility, pending approval by the IMF board. President Hakainde Hichilema accepted a package of structural reforms, privatisation of state-owned enterprises and higher taxes after his disputed re-election on 12 August, while IMF mission chief Edward Gemayel said the government had agreed to raise the primary surplus to 3% of GDP by 2029 through stronger revenue mobilisation, improved tax administration and the rationalisation of tax exemptions.

The IMF said Zambia is entering the programme from a position of strength, with economic growth forecast at 5.6% in 2026. Finance Minister Situmbeko Musokotwane has said government spending is projected to rise by 7%, making the 2027 budget the first major test of the agreement.

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🔸 Source

@africaintel