Zambia’s economy is showing strong signs of recovery, supported by a stronger currency, record foreign exchange reserves, rising copper exports, and fiscal reforms. The country’s international reserves have climbed to a record $6.5 billion, up from $1.15 billion in 2021, while the kwacha appreciated more than 31% against the US dollar between December 2024 and February 2026, making it one of the world’s best-performing currencies. Analysts point to a de-dollarization push, including accepting Chinese yuan for mining taxes and royalties, as a key driver of stability. Copper, which made up over 65% of exports last year, helped push first-quarter export revenue to $4.4 billion, while a record maize harvest is easing pressure on food imports and foreign currency demand. Zambia also recently repurchased $1.36 billion in Eurobonds using a low-cost African Development Bank loan. While these developments have improved investor confidence, analysts caution that Zambia’s continued dependence on copper leaves the economy vulnerable to commodity price fluctuations.
Forbes Africa