International Monetary Fund (IMF) has called on Zambia to safeguard recent economic gains by sustaining fiscal reforms, completing debt restructuring, and accelerating private sector-driven growth.
IMF Resident Representative to Zambia, Eric Lautier, said while the country has made progress in restoring economic credibility under the IMF-supported programme, significant challenges remain.
Mr. Lautier noted that Zambia’s fiscal position remains fragile, emphasizing the need to continue reforms aimed at cost recovery in the electricity sector and broader fiscal consolidation measures.
He was speaking at the joint FNB Zambia and American Chamber of Commerce in Zambia (AmCham) Economic Review event in Lusaka.
“Here, the move towards cost recovery on electricity needs to continue. Rising fiscal pressures and expenditure demands limit the government’s capacity to actively participate in the economy,” he said.
Mr. Lautier stressed that completing the remaining six percent of the debt restructuring process is critical to restoring full macroeconomic stability.
He noted that Zambia has transitioned from a crisis management phase to a position where policy options are broader and more flexible, largely due to reforms implemented under the IMF programme and the government’s reform agenda under the 8th National Development Plan.
Mr. Lautier emphasized that the next phase of Zambia’s economic transformation must be driven by the productive sector, noting that inclusive growth will depend on continued structural reforms.
Among key reform areas highlighted were the agricultural sector, progress in mining sector governance — particularly improving transparency in the mining cadastre and clarifying the role of the Mineral Regulation Commission — as well as strengthening governance frameworks.
He also underscored the need to revise and submit the Anti-Corruption Act to Parliament to enhance the independence of the Anti-Corruption Commission and enable it to effectively fulfill its mandate.
Mr. Lautier stated that Zambia’s task now is to consolidate macroeconomic stability and translate it into durable, inclusive growth that generates employment and improves living standards.
“Zambia has achieved really good results in restoring credibility. The task is now to build on this stability and translate it into durable, job-rich, and inclusive growth that is private sector-led,” he emphasized.
