WASHINGTON: The International Monetary Fund said on Monday that it reached a staff-level agreement for the fourth review of Zambia’s loan program that would release about $185.5 million to Lusaka upon approval by the IMF’s management and its executive board.

The agreement was announced after an IMF mission to Zambia from Oct. 2-15, followed by subsequent discussions at IMF and World Bank annual meetings in Washington, the Fund said in a statement.

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The IMF said Zambia’s economy has been hit hard by drought, with reduced agricultural output and electricity shortages impacting economic activity widely.

It forecast Zambia’s 2024 real GDP growth at 1.2%, down from a 2.3% forecast in June. Inflation accelerated to 15.7% in October, driven by food prices and currency depreciation, well above a target band of 6-8%.