Zambia is looking to extend its $1.7 billion loan programme with the International Monetary Fund (IMF) by an additional 12 months in order to secure $145 million in extra funding, Finance Minister Situmbeko Musokotwane announced on Tuesday.
The request comes as the copper-rich Southern African nation continues its push for fiscal stability following years of unsustainable borrowing and mounting debt obligations.
“The IMF programme gives the assurance that we are running things prudently,” Musokotwane said during a media briefing. “The additional support we are looking at is about $145 million.”
To date, Zambia has received approximately $1.55 billion of the $1.7 billion total earmarked under the Extended Credit Facility (ECF) arrangement, which was set to conclude in October 2025.
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Musokotwane emphasized that ending the programme prematurely could put at risk other streams of donor aid, which are often contingent on Zambia’s active engagement with the IMF.
“If we abandon the programme now, it would damage our credibility and potentially jeopardise further support,” he noted.
Meanwhile, the IMF has confirmed Zambia’s request and said further discussions will take place during the programme’s next scheduled review.
According to LSEG data, Zambia’s 2053 dollar-denominated bond climbed by 0.5 cents to 73.25 cents on the dollar following the announcement.
Zambia currently ranks among the top African countries with the highest exposure to IMF debt, as cited in Business Insider Africa’s report.
The government’s efforts to restructure and extend financial lifelines are part of a broader strategy to restore investor confidence, balance the budget, and spur sustainable growth.
Zambia’s original three-year agreement under the IMF’s Extended Credit Facility was designed to help the country address macroeconomic imbalances, support fiscal reforms, and strengthen governance.
With the planned extension, Zambia signals both a commitment to reform and a need for continued international support to fully emerge from its debt crisis.
While the government remains optimistic, analysts stress that the success of the extended programme will hinge on domestic policy implementation and the global economic environment, particularly copper prices, which play a critical role in Zambia’s export revenues.
Image Credit:Finance in Africa
