…..as the programme with the International Monetary Fund’s comes to an end next year, stakeholders cast doubt on successful exit following the many challenges Zambia is facing
By BUUMBA CHIMBULU in Maputo
WITH 2025 approaching when Zambia’s three-year programme with the International Monetary Fund (IMF) will end, Civil Society Organisations (CSOs) have cast their doubts of successfully coming out of it, while others have suggested an immediate exit plan.
At the just ended fourth edition of the African Conference on Debt and Development (AfCoDD IV), experts convened for a session titled “Feminist Insights into Zambia’s Debt Restructuring Challenges,” to explore how the debt crisis disproportionately impacts women and marginalised groups.
It was during the discussions that Zambia’s IMF programme came about, wondering what was next for the country as the initiative will end next year.
Pondering on the way forward after 2025, CSO Debt Alliance National Coordinator, Peter Mumba, was doubtful that Zambia would successfully exit the programme following the current challenges the country was facing such as the drought crisis.
“My last two cents on the IMF, my thoughts are that if we continue on the current trajectory, we I don’t think we will jump out successfully because I think there are still quite a number of challenges that we are experiencing.
“Already there are signs that there could be some risks going forward and 2025 is just next year…and also we are currently facing a drought, which has also brought other challenges that we need to address….and we are going to have elections. So, the dynamics are quite different. I don’t think we may jump out successfully. They have to have an extension for something,” Mr Mumba said.
Zambia’s debt restructuring process had protracted for more than three-years, with the delay in finalising this process having several socio-economic challenges.
While Mr Mumba suggested a possible extension of the IMF programme, the Jesuit Centre for Theological Reflection (JCTR) Executive Director, Father Alex Muyebe, noted that it was time for Zambia to prepare an exit plan.
Fr Muyebe also highlighted the importance of completing comprehensive debt restructuring, noting that it remained a key benchmark for programmes such as the IMF’s Extended Credit Facility.
He questioned whether Zambia would meet these benchmarks in time.
“I don’t think that we should be asking for an extension. If anything, I think the conversations right from the onset should have been about what’s next after the extended credit facility. We needed to already have an exit plan,” he said.
Meanwhile, Edna Zgambo Kanguya from the Parliamentary Budget Office of the National Assembly of Zambia provided insights into the country’s recent legislative reforms aimed at improving debt management.
The enactment of the Public Debt Management Act in 2022 replaced the outdated Loans and Guarantees Act of 1969, addressing several shortcomings that contributed to the current debt crisis.
Ms Kanguya, however, noted that the Act did not explicitly mandate gender considerations in borrowing decisions.
“From a feminist perspective, the Act is not gender-focused to the extent that it does not explicitly state that the borrowing or the annual borrowing plan should state how much it’s going to impact the gender situation,” she explained.
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