May 7, 2025
Lusaka, Zambia: Nigel Clarke, Deputy Managing Director of the International Monetary Fund (IMF), concluded his visit to Zambia with a statement acknowledging the progress of Zambia's economic reform program. His visit took place from May 4-6.
Clarke expressed gratitude towards Zambian officials, stating, “I would first like to thank H.E. President Hakainde Hichilema, Minister of Finance and National Planning Situmbeko Musokotwane, and Central Bank Governor Denny H. Kalyalya for their warm hospitality and constructive discussions on my first visit to Zambia as Deputy Managing Director of the IMF.”
He highlighted that since its approval in August 2022 and augmentation in 2024, the IMF’s Extended Credit Facility has significantly supported Zambia amidst external challenges. Clarke noted its role in aiding Zambia's debt restructuring under the G20 Common Framework and managing last year's drought.
“Progress on Zambia’s economic reform program supported by the IMF’s Extended Credit Facility has been strong, despite repeated external shocks,” he stated.
Zambia's reforms have focused on macroeconomic stability and sustainability. Key changes include removing fuel subsidies, enhancing debt management, and introducing a reformed agricultural input subsidy system known as the e-voucher system. These efforts have aimed at increasing competition in input delivery while reducing costs and supporting job creation.
“These achievements have been particularly impressing given the challenging external and domestic environment,” Clarke remarked.
Despite these advances, Clarke acknowledged ongoing challenges due to global trade uncertainties and declining external assistance. He emphasized that continued reforms are crucial for resilience building, revenue mobilization, and creating fiscal space for inclusive growth.
“Going forward, the policy environment remains challenging,” he noted.
Clarke also engaged with students from the University of Zambia along with representatives from various sectors during his visit. He valued these discussions regarding recent economic developments affecting Zambia.
“I am also grateful for the opportunity to engage with University of Zambia students and faculty...and exchanged views on how we can best partner with Zambia on its journey towards a more resilient and inclusive future,” said Clarke.
Concluding his visit optimistically about Zambia's future prospects, Clarke reiterated IMF’s commitment to supporting the country’s development goals: “The IMF remains a close partner in supporting the country’s journey to lift the living standards of the Zambian people.”