Treasury bill auction of K2.2 billion on Thursday and national budget on Friday will show how government plans to pay for extra spending

The Bank of Zambia will auction K2.2 billion (about US$109 million) in Treasury bills on Thursday, 29 October, with settlement on 2 November. Access Bank Zambia says the auction will be a gauge of investor appetite for government debt ahead of a supplementary budget, and may show how much of the extra spending the domestic debt market can carry. The offer is split across four maturities: K440 million in 91-day bills, K500 million in 182-day bills, K530 million in 273-day bills and K730 million in 364-day bills. The 364-day bills make up about a third of the total. Access Bank says investors will watch the bid-to-cover ratios, which show how many times bids exceed the amount on offer, and the yields the central bank accepts. No yields or ratios have been announced because the auction has not been held. The bank also pointed to pressure points in the economy. Payments to farmers for FISP inputs and to the Food Reserve Agency for maize could put more kwacha into rural areas, and that could weigh on the currency if the spending is not financed carefully. Building food stocks is seen as sensible given the El Niño warnings, but it adds strain to public finances at a time when growth forecasts are being revised down. The biggest risks are expected in 2027 if the rainy season is poor. The national budget is due to be presented on Friday, according to the Zambia Revenue Authority. Commissioner-General Dingani Banda, speaking through Acting Director-Executive Support Laban Simbeye at a media workshop in Chongwe, said ZRA expects heavy public interest before the budget. He said the 2026 revenue collection target is K185 billion, and that the authority is preparing a Medium-Term Revenue Strategy for 2027 to 2031. "We collect only the tax that is applicable, no more and no less," he said. ## Why it matters When government borrows from banks and investors at home, there is less money for private firms and for farmers who need loans, and the cost of borrowing can rise for ever