By Fridah Chalwe
Centre for Trade Policy and Development Lead Public Finance Researcher, Robert Mwale, has warned that Zambia risks reversing recent economic gains if it exits the IMF Extended Credit Facility program at this critical stage.
In a statement to Mafken News, Mr Mwale said while the economy is showing signs of recovery, leaving the program especially in an election year could weaken expenditure controls, increase budget diversion and undermine fiscal discipline.
He cautioned that exiting the ECF could raise domestic borrowing, crowd out the private sector and push up interest rates, noting that domestic debt rose sharply between 2024 and 2025.
Mr Mwale added that the IMF programme has helped stabilise the economy, strengthen reserves and restore investor confidence, warning that abandoning it could destabilise the exchange rate and reverse balance-of-payments gains.
