Zambia’s local bond market has seen a surge in foreign participation after authorities raised the limit on non-resident involvement in government debt auctions, Bloomberg reports. Non-resident investors accounted for 49 percent of purchases following the increase of the cap from 5 percent to 23 percent last month, Bank of Zambia Governor Denny Kalyalya said.

The government sold 9.3 billion kwacha (486 million US dollars) of bonds on January 23, more than double the 4.2 billion kwacha initially offered, according to central bank data. The higher foreign participation ceiling allows overseas investors to reinvest maturing holdings, easing refinancing pressures and limiting currency conversion risks.

High demand has been observed across the local debt curve, particularly for five- and seven-year bonds, as well as treasury bills, Chipo Shimoomba, a treasury dealer at First Alliance Bank Zambia Ltd., told Bloomberg. “This targeted interest reflects a strategic positioning where investors anticipate policy continuity through the 2026 election cycle,” he said.

Yields on local-currency debt remain elevated, with two-year notes offering 14.9 percent and 15-year securities yielding 18.79 percent, central bank data show.

Zambia’s financial assets have performed strongly alongside the bond market. Africa’s second-largest copper producer has benefited from a 12-month rally in metal prices, with its stock index rising nearly 21 percent in dollar terms since the start of 2026. The kwacha has appreciated more than 15 percent against the dollar, making it the world’s best-performing currency this year.

Governor Kalyalya confirmed the inflow of foreign funds after a monetary policy meeting in Lusaka on Wednesday. The next debt auction is scheduled for Friday. “There was a big inflow of non-residents with that adjustment,” he said.