Zambia has abandoned plans to extend its International Monetary Fund loan programme, stepping back from additional support as the arrangement nears its scheduled end.
The IMF confirmed authorities withdrew their request for a one-year extension of the Extended Credit Facility, reversing earlier intentions.
The programme, agreed in 2022, aimed to steady Zambia’s finances after a painful 2020 default shook investor confidence.
Its sixth and final review is expected to reach the IMF executive board later this month, closing a chapter of cautious recovery.
Zambia had hoped the extension would unlock about $145 million, money seen as a financial cushion against lingering economic pressures.
No official explanation accompanied the decision, leaving analysts to read between the lines of a delicate political and economic moment.
President Hakainde Hichilema’s government is preparing for August elections while grappling with double-digit inflation that strains households and businesses.
Officials, however, paint a brighter horizon, forecasting a sharply narrower deficit and economic growth above six percent in 2026.
Those projections follow years of difficult debt restructuring talks and a severe drought that battered agriculture and state finances.
For now, Zambia steps forward without the extra IMF support, choosing to test its recovery in open economic waters.