Since its inception, the International Monetary Fund (IMF) has been a key player in assisting African countries struggling with balance-of-payments issues, fiscal deficits, or liquidity difficulties.
- The International Monetary Fund (IMF) has historically assisted African nations facing financial challenges through loans and credit facilities.
- Recent cases in Zambia and Uganda highlight the complexities and long-term risks of dependency on IMF programs.
- Zambia’s Extended Credit Facility was extended to January 2026 due to ongoing economic challenges, having already received $1.55 billion out of a $1.7 billion agreement.
- Uganda is negotiating a new Extended Credit Facility after the termination of its prior arrangement, reflecting ongoing fiscal issues.
Although IMF loans offer much-needed assistance during difficult times, relying too heavily on them frequently has serious drawbacks.
Both the immediate assistance these facilities provide and the long-term dangers of growing IMF debt are brought to light by the recent situations of Zambia and Uganda.
In mid-September, the IMF extended Zambia’s Extended Credit Facility by three months, prolonging its expiration date to January 2026.
The initiative, which was initially valued at $1.7 billion, has already distributed around $1.55 billion, as per Reuters.
This prolongation is more than simply a technical adjustment; it highlights the challenges that the southern African nation has in fulfilling reform targets and stabilizing its economy.
The continued reliance on IMF financing raises worries about policy flexibility.
Governments frequently have to match fiscal and monetary policies with IMF standards, which limits their flexibility to develop domestic remedies.
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In Zambia’s situation, the extension reflects both an urgent need for sustained financial help and a poor rate of debt reduction.
Another Reuters report showed that Uganda, too, is currently seeking a new arrangement. The government is now negotiating a new Extended Credit Facility, as the last one, which began in 2021, terminated in 2024.
Approximately $870 million of the nearly $1 billion approved for the initiative was distributed. With public debt rising to more than 52% of GDP, the government sees IMF assistance as crucial to stabilizing its finances, especially as it approaches elections in 2026.
But this raises a warning flag: arranging a fresh round of borrowing so soon after the last one signals a cycle of reliance.
With that said, here are the African countries with the highest debt to the IMF in September 2025, as per the IMF’s database.
