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The approval brings Zambia’s total disbursement so far under the ECF-supported program to about USD 1.1 billion
The IMF Executive Board completed the third review under the 38-month Extended Credit Facility (ECF) Arrangement for Zambia and approved an augmentation of the arrangement, providing Zambia with immediate access to about USD 569.6 million.
The approval brings Zambia’s total disbursement so far under the ECF-supported program to about USD 1.1 billion. The program supports Zambia’s home-grown Eighth National Development Plan that seeks to entrench macroeconomic stability, attain debt and fiscal sustainability, enhance public governance, and foster inclusive growth to improve the livelihood of the Zambian people, especially the vulnerable.
Zambia is grappling with a severe drought that has significantly impacted agriculture and electricity generation, affecting a substantial share of the population. Zambian President Hakainde Hichilema in February declared the drought a national disaster and appealed for international aid two months later, with the nation facing a US$ 900 million shortfall this year because of the severe weather.
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The drought has stoked already high inflation, which accelerated to 14.7% in May, the highest rate in more than two years. Consequently, growth projections for 2024 have been revised down to 2.3 percent, from 4.7 percent, and the 2024 budget has been revised to accommodate the drought’s impact.
