Zambia: Fuel price hikes loom large as Hichilema clinches IMF deal

By Chiwoyu Sinyangwe
Posted on Wednesday, 7 September 2022 12:06

United Party for National Development (UPND) presidential candidate Hakainde Hichilema smiles during a rally in Lusaka January 18, 2015. Zambians go to the polls on January 20 following the death of President Michael Sata in October 2014. REUTERS/Rogan Ward

The decision of the International Monetary Fund (IMF) board to approve a $1.3bn bailout for Zambia on August 31 should have come as a great relief to the country – but the threat of high oil and electricity prices continues to mire celebrations.

Zambia’s 38-month arrangement under the Extended Credit Facility (ECF) is based on the country’s “homegrown economic reform plan that aims to restore macroeconomic stability and foster higher, more resilient, and more inclusive growth,” according to the official statement by the IMF made on September 1, 2022.