Zambia debt management and fiscal policy

Zambia has undertaken significant measures to manage its national debt and stabilize fiscal policy. In September 2026, the government executed a $1.36 billion debt buyback, repurchasing Fixed Rate Step-Up Amortizing Notes due in 2053 nearly three decades ahead of maturity. This transaction was supported by $600 million from the African Development Bank and the government’s own resources. Finance and National Planning Minister Situmbeko Musokotwane characterized the move as a shift toward “proactive debt management rather than mere restructuring.” Additionally, Zambia qualified for J.P. Morgan’s GBI-EM Edge index, which is expected to increase access to global investors.

Following these actions, the government released K14.6 billion in September 2026 to fund debt obligations, public services, and social protection. Of this amount, K5.4 billion was allocated to debt servicing and clearing domestic arrears, including some debts outstanding for over five years. The remaining funds supported the public service wage bill, social welfare programs, and subsidies for hospitals and universities.