ISTANBUL 

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.