The Zambia and IMF staff reached a technical agreement on 9 October 2026 on a programme of about 1.47 billion dollars over three years, aimed at supporting the country's budget and external financing needs. Entry into force remains subject to approval by the IMF Executive Board and the completion of prior actions.
The agreement envisaged under the Extended Credit Facility represents 1.076 billion special drawing rights, according to the Fund's statement reported by Zambia Monitor. This unit of account is used by the IMF to set its lending, while its dollar equivalent depends on the conversion rate applied.
Mission chief Edward Gemayel told Reuters that a Board decision was expected around December. Disbursements would be split into seven tranches, the first representing about 15% of the total, then spaced six months apart.
The project comes as the budgetary position deteriorated in 2026, owing to revenues below expectations and spending above forecasts by the public agency in charge of food reserves. Strengthening tax collection and oversight of state-owned enterprises are among the priorities outlined by IMF staff, alongside protection of priority social spending.
This new cycle would succeed the programme whose sixth and final review the Fund completed on 27 January 2026. The institution had then authorised a disbursement of about 190 million dollars, bringing total financing under that previous arrangement to nearly 1.7 billion.
The Extended Credit Facility is aimed at low-income countries facing protracted balance of payments difficulties. It involves regular reviews of policies agreed with the authorities, to which subsequent disbursements are tied.