Zambia: Fourth Review Under the Arrangement Under the Extended Credit Facility and Financing Assurances Review-Press Release; Staff Report; and Statement by the Executive Director for Zambia

Zambia faces a severe drought, sharply reducing agricultural and electricity output and leading to extensive load shedding. In response, the authorities expanded social cash transfers to support affected households. Multilateral financing has eased fiscal and balance of payments pressures. Despite these challenges, policy adjustment and reforms are supporting macro stability and fiscal and debt sustainability.