Zambia showed strong economic performance with robust growth and moderating inflation under the Extended Credit Facility (ECF). It showed sound macroeconomic policies and progress in structural reforms. The Zambian authorities consider their main challenge to create fiscal space for priority...

Zambia achieved strong growth and macroeconomic stability over most of the last decade. However, in the last two years, the Zambian economy has been facing strong headwinds from large fiscal imbalances, lower copper prices, and policy uncertainties. The current account has deteriorated,...

The legal framework for PFM in Zambia is fragmented, and much of it is outdated—falling short of capturing both recently introduced reforms and internationally accepted practices. The government has prioritized a revision of the existing legal framework for PFM and national development...

This paper presents the Joint Staff Assessment of Zambia’s Poverty Reduction Strategy Paper (PRSP) Progress Report. The report concludes that the implementation of the PRSP has been weaker than intended because of the extreme pressures placed on the budget by extrabudgetary expenditures, which...

Zambia faces a severe drought that has significantly impacted agriculture and electricity generation and affected a substantial share of the population, leading the President to declare it a national disaster emergency and plan a revision of the 2024 Budget. Despite these challenges, the...

This Selected Issues paper on Zambia reports that the authorities have outlined a range of alternative policy scenarios to achieve greater pro-poor growth. The thrust of these policies is to support higher growth in rural areas, where the incidence of poverty is particularly high, by investing...

This paper analyzes the efforts taken to create fiscal space for the implementation of the fifth national development plan and the risk associated with it, examines the role of monetary policy in determining inflation, and discusses policy options to achieve low inflation. It also identifies...

Zambia has achieved robust economic growth over the years, and poverty has begun to trend downward under the Poverty Reduction and Growth Facility Arrangement. Prudent fiscal policy has reduced the domestic financing need and facilitated the implementation of a firmer monetary policy. Executive...

The Zambian economy has performed well owing to its strong macroeconomic policies, high copper export prices, and extensive debt relief. Executive Directors encouraged the authorities to reduce poverty and attain the Millennium Development Goals (MDGs) under the Fifth National Development Plan...