Government Finally Requests IMF Help

After years of diplomatic tensions the Zambian government has finally requested support from the International Monetary Fund (IMF) to aid the country in its financial reform efforts.

In a statement from Washington the IMF said it was currently reviewing Zambia’s request. As part of this assessment the fund’s Africa Director Abebe Aemro Selassie and its mission chief for Zambia Alex Segura-Ubiergo are visiting Lusaka for high level discussions this week.

On Tuesday President Lungu met with Mr Selassie at State House. An official statement from the president’s office said the pair discussed a wide range of issues pertaining to Zambia’s future relationship with the IMF.

Also present at the meeting were cabinet secretary Simon Miti, treasury secretary Fredson Yamba, Bank of Zambia governor Christopher Mvunga, and permanent secretary to the ministry of finance, Mukuli Chikuba. 

The talks mark the first time that Zambia has formally approached the IMF for a bailout package under President Lungu. The fund has suffered from a difficult relationship with the Lungu administration after the president rejected a proposed deal in 2015. The fund later left Zambia in 2018 after President Lungu declared a state of emergency in the country. 

Renewed talks come at a critical time for Zambia, after the country officially defaulted on its foreign debts in November. Zambia currently owes its international creditors an estimated $12 billion, including $3 billion form Chinese lenders.

The IMF have previously said they are willing to help Zambia with its debt problem, but that the country must agree to greater transparency and fundamental reforms in terms of liability management.