THURSDAY, JANUARY 22, 2026
LUSAKA - The Jesuit Centre for Theological Reflection (JCTR) made a formal submission to the National Assembly Committee on Planning and Budgeting on the effectiveness of Zambia’s Extended Credit Facility (ECF) arrangement with the International Monetary Fund (IMF), with particular focus on budget support, debt sustainability, and the lived realities of citizens.
Grounded in JCTR’s long-standing mission to promote social and economic justice, the submission assessed whether Zambia’s IMF-supported programme has contributed meaningfully to macroeconomic stability without undermining human dignity, poverty reduction, and inclusive development.
Zambia’s ECF programme, approved in December 2021 and implemented between 2022 and 2025, followed a period of severe macroeconomic distress characterised by unsustainable public debt, high inflation, dwindling reserves, and weak fiscal governance. At its peak, public and publicly guaranteed debt stood at approximately 133% of GDP, placing the country in deep debt distress.
The ECF sought to restore stability through fiscal consolidation, debt restructuring under the G20 Common Framework, governance reforms, and measures to protect social spending. JCTR’s submission evaluated the effectiveness of these reforms not only through macroeconomic indicators, but also through their distributional and social impacts.
1. Macroeconomic Stabilisation with Cautionary Notes
The ECF has contributed to improved fiscal discipline, enhanced budget credibility, reserve accumulation, and renewed access to concessional financing. Inflation was moderated for much of the programme period, growth recovered following the COVID-19 shock, and debt restructuring moved Zambia from acute distress to a fragile but improving position. However, high debt levels persist, leaving the country vulnerable to exchange rate shocks, climate risks, and global commodity volatility.
2. Debt Sustainability Must Go Beyond Ratios
While progress has been made in restructuring debt and strengthening the legal framework through the Public Debt Management Act of 2022, JCTR emphasised that debt sustainability must not be pursued purely as a technical exercise. It must be aligned with development outcomes, transparency, parliamentary oversight, and intergenerational equity.
3. Social Spending Expanded, but Pressures Remain
The programme enabled notable increases in education, health, and social protection spending, including the recruitment of teachers and health workers, expansion of free education, and scaling up of the Social Cash Transfer and Cash for Work programmes. However, rising living costs, inflation, and fiscal constraints have limited the real impact of these investments, with poverty levels remaining stubbornly high.
4. Governance Reforms Show Promise but Face Implementation Gaps
Significant legislative reforms were enacted, including laws on public debt, procurement, access to information, and central banking. Nevertheless, implementation remains uneven, particularly in state-owned enterprise governance, IFMIS enforcement, anti-corruption oversight, and beneficial ownership transparency. Institutional capacity and political commitment will determine whether these reforms deliver lasting change.
5. Lived Experiences Reveal the Human Cost of Adjustment
Drawing on JCTR’s Basic Needs and Nutrition Basket (BNNB) data and community-level research, the submission highlighted how subsidy removals, fuel price increases, and climate shocks have raised the cost of living, reduced household incomes, and strained informal livelihoods. These realities underscore the need for stronger social impact assessments and more deliberate protection of vulnerable groups.
JCTR called on Parliament and policymakers to ensure that:
As Zambia approaches the end of the ECF programme, JCTR reaffirmed that economic recovery must be measured not only by improved indicators, but by improved lives.
The full memorandum submitted to the National Assembly Committee on Planning and Budgeting is available below.
"A just Zambian society guided by faith, where everyone enjoys the fullness of life".