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The Zambian Kwacha surged over 3.0 percent against the US dollar on Thursday — its strongest single-day gain in months — solidifying its position as Africa’s best-performing currency in 2025, with a year-to-date appreciation of more than 21 percent.
According to a commentary by Access Bank Group, the currency’s rally reflected growing investor confidence in Zambia’s copper-driven economic recovery, supported by record production prospects and surging global metal prices.
Copper, which accounts for more than 70 percent of Zambia’s foreign exchange earnings, has climbed over 20 percent this year, trading near record highs of about US$10,888 per tonne.
“The price rally has been fuelled by supply disruptions at major global mines, including floods in the Democratic Republic of Congo and Chile’s deadliest mining collapse in decades, which have tightened global supply just as Zambia ramps up output,” it stated.
Read more: Kwacha strengthens further on the back of improved foreign exchange supply
For the first time in a century, Zambia is on course to exceed one million tonnes of copper production this year.
Mining giants such as Barrick Mining and First Quantum Minerals had collectively invested around US$10 billion to expand production capacity, further strengthening the country’s economic outlook.
Meanwhile, elsewhere on the continent, South Africa’s manufacturing sector continues to struggle. Production declined by 1.5 percent year-on-year in August, deeper than the expected 0.4 percent contraction.
The slump is driven mainly by a 5.9 percent drop in basic iron and steel output and a 3.0 percent contraction in food and beverage production, reversing earlier gains.
Though some industries — such as petroleum and chemical products — recorded a modest 1.8 percent rise, overall manufacturing output remains well below pre-pandemic levels.
Analysts say South Africa’s persistent de-industrialisation reflects structural challenges that have eroded competitiveness and deterred investment in key sectors — a stark contrast to Zambia’s ongoing industrial and mineral revival.
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