The disclosure by government that the country has about $6.5 billion in gross international reserves, has stirred an ongoing debate on its significance between citizens and politicians alike.
Analysts say the disconnection that many Zambians are saying they are not feeling it in daily life is a major talking point ahead of the August 13, 2026 election.
Bank of Zambia Governor Dr Denny Kalyalya recently said reserves hit a historic high of US$6.5 billion in February 2026, driven by foreign exchange purchases.
By end of Q1 2026 they were US$6.2 billion, or about 5.2 months of import cover.
That is up from roughly US$1.2 billion in 2021 when the UPND took office.
President Hakainde Hichilema has defended keeping the money untouched.
He described the reserves as “seed grain” that must be kept for emergencies, saying they are “locked with keys. You won’t see them”.
The government argues the reserves help stabilize the kwacha, support imports of fuel, medicines and fertilizer, and protect against external shocks.
*Why people on the streets say they don’t feel it*
1. *Cost of living pressures*: Inflation was 15.6% in July 2026, and a single person’s monthly costs without rent are estimated at about ZK8,603. Fertilizer prices were cited at K1,000 per bag by opposition figures.
2. *Opposition criticism*: Tonse PF-Pamodzi candidate Brian Mundubile called the $6.5 billion “useless” to ordinary citizens struggling with mealie-meal and basic goods. He asked why money is “locked” in reserves while farmers cannot get support.
3. *Economic arguments about reserves*: Economists note reserves are not cash for spending. They act as a buffer to defend the kwacha and pay for imports. If government draws them down to subsidize costs, analysts warn it could weaken the kwacha, raise imported inflation, and hurt creditworthiness.
Former PeP president Sean Tembo also argued the reserves are parked in US banks and do not directly fund local jobs or investment.
*The broader picture*
On paper, macro indicators have improved: inflation fell to 6.8% in April 2026, the kwacha appreciated, and GDP growth is projected at 6.4% for 2026. But unemployment remains high at 13%, with youth at 24.7%, and poverty is still around 70%.
So the $6.5 billion is real on the Bank of Zambia’s balance sheet, but it is functioning as a stabilization tool, not a direct cash transfer.
For households dealing with food, fuel and fertilizer prices, the benefit feels indirect and delayed, which is why the gap between the headline figure and street-level experience is being debated heavily right now.