Zambia faces a severe drought that has significantly impacted agriculture and
electricity generation and affected a substantial share of the population, leading the
President to declare it a national disaster emergency and plan a revision of the 2024
Budget. Despite these challenges, the government remains focused on supporting
macroeconomic stability, restoring fiscal and debt sustainability, and addressing
humanitarian needs. The government continues to work with its external creditors
to restructure its debt in line with program parameters. While mobilizing external
financing, exchange rate flexibility will help manage balance-of-payment pressures.
Enhancing regulatory frameworks and financial oversight is crucial for financial stability
and inclusion, with efforts to improve governance and advance structural reforms
continuing to enhance growth.