The International Monetary Fund said it has increased loan disbursement to Zambia up to $1.7 billion with an immediate release of $569.6 million.

It will help the southern African nation boost its foreign reserves as it faces a severe drought, significantly impacting its agriculture and electricity generation.

The drought situation led to a revision of the 2024 growth projections down to 2.3% from 4.7%, the IMF said after a meeting of its executive board on Wednesday.

It was in August 2022 that Zambia signed a 38-month Extended Credit Facility arrangement with the IMF under which the loan was disbursed.

“The drought has affected a substantial share of the population, and the authorities should continue their commendable efforts to address the humanitarian needs,” said Antoinette Sayeh, IMF deputy managing director. By Necva Tastan, Anadolu Agency

Anadolu Agency