Zambia spent the equivalent of about US$1.25bn in January to protect vulnerable citizens, sustain key services, government says

February 10, 2026

Zambia’s government released the equivalent of roughly US$1.25 billion in January 2026, with the largest allocations directed toward wages, debt service and social spending, officials said on Monday.

According to the Treasury’s monthly budget execution report, total releases amounted to K23.2 billion (about US$1.25 billion). The biggest single share K7.7 billion went to transfers, subsidies and social benefits, intended to protect vulnerable citizens and sustain essential delivery institutions.

Of this amount, K4.9 billion (US$263 million) was spent on the public service wage bill, ensuring continued payment of salaries and allowances for frontline workers including health staff, teachers, security personnel and diplomats abroad.

Debt servicing covering both domestic and external obligations accounted for K7.4 billion (US$398 million). The Treasury also disbursed K1.8 billion (US$97 million) for general government programmes and operations, and K1.4 billion (US$75 million) for capital expenditure, including critical infrastructure projects nationwide.

Under transfers and social benefits, K4.9 billion (US$263 million) was released to the Food Reserve Agency (FRA) to settle obligations to maize farmers from the 2024/2025 marketing season. Finance and National Planning Minister Situmbeko Musokotwane confirmed that the government was not in arrears to farmers.

“Any reports of unpaid suppliers are likely due to administrative or banking delays rather than funding shortages,” she said.

An additional K147.5 million (US $7.9 million) was paid to clear outstanding dues under the Cash for Work Programme, which is set to restart in March or April 2026.

Musokotwane said the January disbursements sent clear signals to citizens and markets about continuity in essential services, fiscal credibility and orderly execution of budget priorities.

“Essential services continued uninterrupted, obligations were met in a manner that sustains fiscal credibility, and legacy payment lines were actively cleared to allow key programmes to move forward,” she said.

She added that the releases demonstrated the practical character of the 2026 budget: safeguarding service delivery now, reinforcing fiscal credibility over time, and resetting priority social interventions as Zambia advances from stabilisation into a growth-oriented phase.