Zambia targets ~82% domestic financing for 2026 budget, reducing near-term external amortisation after $1.36bn buyback

On 30 July 2026 Zambia’s Treasury Secretary said the government expects roughly 82% of resources for the 2026 national budget to be mobilized domestically, shifting financing pressure onto local T-bills and bonds; this follows a June 2026 buyback that removed a $1.36bn external bond and lowered near-term external debt service.

Raising the domestic financing share to ~82% channels more rollover and funding demand into the domestic kwacha money and bond markets, which can tighten short-term liquidity and lift short-to-medium-term yields along the local curve. Concurrently, retiring the $1.36bn 2053 bond eases scheduled external amortisation and reduces immediate FX outflows, supporting reserve dynamics and near-term external liquidity.

Monitor AfDB $600m facility disbursement and Treasury bill auction results over the next 3 months for signs of local market strain.