The International Monetary Fund has cautioned that fiscal pressures in Zambia have intensified in 2026, even as the country has made substantial progress in restoring macroeconomic stability.
The warning comes as Lusaka navigates a critical juncture in its economic recovery, with the IMF staff team noting that recent gains in foreign reserves and inflation control are being offset by emerging fiscal vulnerabilities.
According to reports from Lusaka Times, the assessment follows a staff mission led by Edward Gemayel, which visited the capital from April 30 to May 13, 2026.
The team engaged in discussions regarding a possible successor IMF-supported program, identifying weaker tax collection and election-related spending as primary drivers of the heightened fiscal strain.
These factors threaten to undermine the fiscal consolidation efforts that have been central to Zambia's post-debt-restructuring recovery.
The IMF's observation underscores the delicate balance required in Zambia's economic management.