Yesterday, the Executive Board of the International Monetary Fund (IMF) approved for the immediate disbursement of $189 million under the Extended Credit Facility Arrangement. This brings Zambia’s total disbursements under the Extended Credit Facility Arrangement to about $374 million.
IMF Managing Director, Kristalina Georgieva says Zambia has made commendable efforts over the past two years to stabilise the economy, despite the continuation of significant external shocks.
Economist Dr. Edina Litana says Zambia being dubbed a defaulter in 2022 created negative sentiments which affected foreign direct investment streams, and this new development is likely to improve Zambia’s fiscal position.
Dr. Litana tells Flava News that foreign direct investment creates more jobs and complements what the country already has in place locally in terms of private sector contributions.
She points out that if many foreign investors do not believe in Zambia’s investment potential, it adds to the country’s economic vulnerability.
