Economist Kelvin Chisanga says the 100 percent participation in Zambia’s bond auctions reflects strong investor confidence.
In a statement, Monday, Chisanga, however, cautioned that frontier market risks such as currency volatility, sovereign credit profile, and liquidity constraints persist.
He explained that foreign involvement reached 23 percent for the second consecutive month in February 2026.
Chisanga observed that auctions were oversubscribed by more than 100 percent, particularly in the 5‑ to 10‑year tenors.
He noted that the 10‑year bond yield averaged 17.5 percent, signalling attractive returns for investors.
The Economist highlighted that inflation eased to 9.4 percent, offering relief to households and businesses.
He remarked that the policy rate was reduced from 14.25 percent to 13.5 percent, supporting fiscal discipline and price stability.
Chisanga underlined that the government’s domestic debt ceiling of K300 billion provides a framework for sustainable financing.
He pointed out that bonds issued via competitive auctions remain tradable in the secondary market, enhancing liquidity and transparency.
The Economist stressed that approximately 17 million Zambians benefit from easing inflation and more reliable public services.
He emphasised that careful management is critical to sustain confidence in the bond market.
Chisanga affirmed that long‑term benefits for Zambia’s economy depend on prudent fiscal and monetary policies.
