Zambia and Niger have secured fresh International Monetary Fund financing as both governments seek to shore up public finances, but the agreements underscore the challenge facing African borrowers: turning emergency support into growth that reduces the need for further loans.
Zambia has agreed a new 36-month programme worth $1.47bn, while Niger has reached a 38-month arrangement valued at $203mn, according to Dumebi Oluwole, Economist (Africa and EMEA).
“Both deals are important. But the key questions are what exactly the funds will be used for, and how long the country has to repay them,” Oluwole told DNE Africa.
Both arrangements are under the IMF’s Extended Credit Facility, with zero interest, a five-and-a-half-year grace period and ten years for repayment, she said.
For Zambia, the new programme follows the completion of the sixth and final review of a previous 38-month arrangement, under which it drew about $1.7bn. The country is seeking to consolidate its recovery from a sovereign default during the pandemic.
Public debt fell from 133% of gross domestic product at the end of 2021 to about 91% in 2025, with most external debt restructured. Growth is projected at 5.6% this year, inflation has eased to 6.1% and foreign-exchange reserves stand at $6.1bn, according to figures cited by Oluwole.
The recovery remains vulnerable. Revenue fell short of expectations in 2026, Food Reserve Agency spending exceeded its budget and the IMF continues to classify Zambia as at high risk of debt distress.
The new programme aims to raise domestic revenue and lift the primary fiscal surplus to 3% of GDP by 2029. Increasing export earnings from copper and other critical minerals is also central to the country’s efforts to strengthen its finances.
Niger faces a different combination of pressures. Its fiscal deficit is forecast at 3.4% of GDP this year, above the regional ceiling of 3%, largely reflecting reconstruction after disasters and support for poorer households. An initial disbursement of about $36mn is expected following IMF board approval in December.
Higher oil prices are providing additional revenue, some of which is being used to rebuild fiscal buffers. The agreement also signals continued engagement by international lenders with Niger, which has been under military rule since 2023.
But access to financing will not, by itself, resolve the countries’ underlying fiscal weaknesses.
“Over the years, we have seen countries take on IMF reforms and more debt, and still end up back where they started,” Oluwole said.
She argued that borrowing should finance investment capable of raising productivity and generating future revenue, rather than merely covering immediate spending needs.
“The priority should be capital spending with a positive multiplier effect on the economy,” she affirmed.
