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Zambia’s local-currency bond market has emerged as Africa’s best performer this year, delivering returns of about 25 percent and outperforming all other domestic debt markets on the continent, according to market commentary from Access Bank Group.
The rally has come alongside broader gains in Zambian assets, lifting the stock market and strengthening the Kwacha.
The bank noted rising foreign interest in domestic bonds, which has offered key support to the currency.
“The Kwacha has gained more than 19 percent against the US dollar so far this year, making it the only currency tracked by Bloomberg to record a double-digit appreciation in 2025,” it said.
Read more: Demand for Zambian government bonds hits record high, as bids climb three-fold
The positive market trend has also been buoyed by higher copper prices. As the country’s primary export, copper continues to shape economic prospects and has helped improve the balance of payments.
Strong investor appetite was evident at a bond auction on Friday, where bids exceeded supply by more than five times.
While authorities did not disclose the foreign participation breakdown, non-residents accounted for nearly half of the bonds sold at the January 23 auction—the first after restrictions on foreign purchases were lifted—according to Denny Kalyalya of the Bank of Zambia.
At the latest sale, the central bank raised K9.8 billion (about US$534 million), more than double its initial target, issuing five-year and 15-year bonds at yields of 14.98 percent and 17.59 percent, respectively.
Analysts said the larger-than-planned issuance reflected improved interbank liquidity, largely driven by foreign inflows seeking attractive double-digit returns—an indication of growing international confidence in Zambia’s domestic debt market.
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