IMF approves additional US$388 million support for Zambia to fight drought, as World Bank pledges $200m

The International Monetary Fund (IMF) has approved an additional US$388 million in support for Zambia to address the impacts of the ongoing drought.

This comes just days after Zambia’s request to bolster financing under the US$1.3 billion Extended Credit Facility (ECF) programme to mitigate the effects of the current drought.

Finance and National Planning Minister, Situmbeko Musokotwane, announced the approval on Thursday in Lusaka during a financing signing ceremony.

In 2024, real GDP growth is now projected at 2.3 percent, reflecting the need for additional external and fiscal financing.

Recently, Zambia requested a 30 percent increase in access to funds (SDR 293.46 million) from the IMF to maintain macroeconomic stability and bolster the country’s resilience to external shocks.

Additionally, Musokotwane announced that the World Bank pledged US$200 million in financing to aid Zambia’s response to the crisis caused by the drought.

“In view of crisis that we are facing due to drought, the World Bank has pledged to support us with some funds under the Crisis Response Window Scaling Up Shock Responsive Social Protection projects estimated to amount to US$200 million.

“The funds will assist the government to effectively respond to the negative effects of the drought,” he said.

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