Make Way Zambia
The International Monetary Fund (IMF) loan programme in Zambia, designed to restore economic stability, has imposed austerity measures that are severely restricting public budget for essential services and access to health, particularly for vulnerable groups. This is the key finding from Wemos’ latest research, developed together with the Make Way programme in Zambia. To restructure Zambia’s debt without jeopardizing social well-being, the government and the IMF should revise their approach to economic policies, ensuring social protections are in place to safeguard essential services.
Zambia is grappling with a severe economic crisis, marked by high inflation, rising poverty and an external debt burden of USD 14.5 billion in 2023. In an effort to stabilize the economy, Zambia secured a USD 1.7 billion loan from the IMF under the Extended Credit Facility (ECF). However, the austerity measures imposed by the IMF are exacerbating socio-economic inequalities and hindering access to quality healthcare.
The removal of subsidies and rising inflation have driven up the cost of living, making it harder for families to afford healthcare, transportation to clinics, and out-of-pocket expenses for essential medicines. Health facilities, especially in rural areas, face critical shortages of staff and essential supplies, including essential medicines.
The result is a sharp decline in household income and reduced access to essential health services, particularly in marginalized communities. Women, LGBTQIA+ persons and vulnerable populations are disproportionately affected, as they depend heavily on public health services that are becoming increasingly unaffordable and inaccessible.
While the health sector’s budget has nominally increased from 8% in 2022 to 11.8% in 2024, high inflation has reduced the real value of these investments, leaving the healthcare system underfunded and understaffed. In addition, Zambia’s heavy reliance on external funding for its health system also makes it vulnerable to shifting international priorities, which can undermine long-term health investments. These issues, coupled with high debt servicing costs, restrict the government’s ability to invest in the health system.
Therefore, despite the IMF’s goal of restoring fiscal stability, its austerity measures have intensified economic challenges. Its approach does not adequately consider the social impacts of its policies, leaving marginalized groups at greater risk of poor health outcomes and financial instability.
To enable the country to recover its economic stability while providing quality and accessible healthcare for all, the Zambian government and the IMF should address the social consequences of austerity measures. We outline 7 policy recommendations that prioritize social protection and health equity.
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