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Economist Kelvin Chisanga says Kwacha’s 14.8 percent appreciation against the US dollar in the first quarter of 2026 reflects improving confidence in Zambia’s economy.
In a statement issued in Lusaka on Sunday, Chisanga attributed the appreciation mainly to stronger mining sector inflows and improved foreign exchange liquidity.
“Mining-related forex inflows rose to slightly over US$915 million, up from US$759 million in the previous corresponding quarter, representing a 20.6% lift in comparison to 2025,” he said.
According to Chisanga, mining companies contributed about US$626 million, while mining tax remittances added nearly about US$290 million.
He noted that foreign financial institutions also injected more than US$542 million into the market, strengthening liquidity and stabilising the exchange rate.
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“This development is significantly important because a stronger Kwacha helps reduce imported inflation effects on key imports such as fuel, petrochemicals, medicines and industrial inputs,” Chisanga said.
He added that the stronger currency “also boosts investor confidence and supports the larger scale of macroeconomic stability.”
Chisanga said with copper production projected to exceed 1 million tonnes in 2026, Zambia stood to benefit from stronger export earnings and improved economic growth prospects.
He, however, cautioned that long-term sustainability would depend on diversification and value addition beyond copper exports.
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