LUSAKA – Kwacha Surges as Copper Recovery Boosts Investor Confidence
Zambia’s currency, the kwacha, has reached its strongest level in nearly two years, buoyed by renewed optimism surrounding the country’s copper industry — a cornerstone of its economy.
The kwacha gained 0.7%, trading at 22.76 per US dollar, according to market data. This performance cements its position as Africa’s top-performing currency in 2025, with an impressive 23% appreciation since the start of the year.
Copper Industry Drives Economic Momentum
Analysts attribute the rally to growing confidence in Zambia’s copper production recovery, following years of economic turbulence and operational disruptions in the mining sector.
As one of the world’s leading copper producers, Zambia is expected to benefit from rising global demand for the metal, particularly in renewable energy technologies and electric vehicle manufacturing.
The rebound in output, coupled with favourable global commodity prices, has strengthened investor sentiment and improved foreign currency inflows.
Economic Outlook Brightens
A stronger kwacha signals growing economic stability for Zambia. The currency’s rise is expected to ease inflationary pressures, improve import affordability, and create room for sustainable growth.
Economists believe the local currency’s performance could encourage greater foreign investment and macroeconomic confidence if the positive trend in copper exports continues.
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