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A team from the International Monetary Fund (IMF) is in Zambia for the third review mission under the Extended Credit Facility (ECF) programme, which once approved, will trigger the fourth payment of about US$186 million.
This is according to Finance and National Planning Minister, Situmbeko Musokotwane, in his update on the just ended IMF/World Bank Spring meetings.
Musokotwane said the expected outcome was a Staff-Level- Agreement, which would be subjected to approval by IMF Management and the Executive Board.
“For clarity, approval by the IMF Executive Board will trigger the fourth disbursement of approximately US$186 million,” he said.
He added that as a benchmark country on debt restructuring under the G20 Common Framework, Zambia remained committed to addressing debt challenges in an effective, comprehensive and transparent manner.
Meanwhile, the Minister also revealed that Zambia and the United States of America (U.S.A) signed the Second Millennium Challenge Compact.
He explained that the step ushered in the final stage of the compact development process and would lead to the signing of the second Compact estimated at more than US$400 million, within the year.
“The expected over US$400 million grant will be applied towards improving road infrastructure in prioritised agriculture corridors, increasing access to affordable finance for investment in agriculture value chains, agriculture policy reforms, and institutional strengthening,” Musokotwane said.
The compact would focus on improving road infrastructure in prioritised agriculture corridors, asset finance aimed at increasing access to affordable finance for investment in energy, irrigation, logistics, and processing assets for agriculture value chains.
The other focus on the project would be on agriculture policy reform and institutional strengthening aimed at increasing private sector trade in domestic and export agricultural markets.
“Evidently, Zambia’s progress under the debt restructuring process has opened floodgates of positive sentiments as we are now seeing more and more partners opening up to our invitations for collaboration in development,” Musokotwane said.
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