Zambia using locally generated revenue to pay off old debt while continuing to invest in the future.

Zambia is using locally generated revenue to pay off old debt while continuing to invest in the country's future. According to the June 2026 Treasury release, Government disbursed K49.1 billion to fund public services, support vulnerable households, finance development programmes and meet debt obligations. Of that amount, K34.9 billion went towards servicing debt and clearing domestic arrears accumulated mainly between 2011 and 2021. One of the biggest milestones was the successful buyback of Zambia's Bond B, the first operation of its kind globally. By repurchasing the bond at a discount, Government is expected to save about US$270 million, money that will now be redirected into expanding electricity infrastructure instead of servicing expensive debt. The progress reflects a stronger fiscal position. Around 80 percent of the 2026 national budget is now being financed from locally generated revenue collected through the Zambia Revenue Authority. This means Zambia is increasingly funding its own priorities while reducing the burden of legacy debt inherited from previous years. The result is a shift from managing debt to creating room for investment in infrastructure, energy and economic growth.