International Monetary Fund (IMF) support will f low into Zambia due to the country meeting its commitments in order to qualify for a $1.3-billion extended credit facility (ECF). “Zambia’s reform efforts since the inception of the ECF have been commendable. “All quantitative performance criteria and nine of 11 structural benchmarks for the first review have been met,” the IMF Executive Board says in a statement issued after a review of a 38-month ECF arrangement and Article IV Consultation.The programme is based on the Zambian authorities’ homegrown economic reform plan that aims to restore macroeconomic stability and foster higher, more resilient, and more inclusive growth, according to the IMF.“Zambia is dealing with the legacy of years of economic mismanagement, with an especially inefficient public investment drive. “Growth has been too low to reduce rates of poverty, inequality, and malnutrition that are amongst the highest in the world. “Zambia is in debt distress and needs a deep and comprehensive debt treatment to place public debt on a sustainable path,” according to the IMF.It says “decisive steps have been taken to cut inefficient public spending and create space for increased social spending and investment in human capital – including freeing the resources to provide free education for all and to hire 41 000 additional health and education workers. “Public procurement regulations are being implemented to ensure value for money and increased transparency of public spending. “And steps are being taken to improve the business environment and attract much-needed private investment to Zambia,” it states.Strengthening economic governance remains the ultimate goal.
High praise from International Monetary Fund
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