Zambia’s currency hits highest level since 2024 amid copper price boom

Zambia’s currency surged to its strongest level in nearly two years, buoyed by renewed optimism in the nation’s copper industry.

The kwacha advanced 0.7% to 22.76 per dollar, its highest level since February 2024, extending a rally that has made it Africa’s best-performing currency this year with a 23% gain, according to Bloomberg.

In February, Business Insider Africa reported that the kwacha had emerged as the top-performing African currency against the U.S. dollar, driven by the central bank’s aggressive monetary tightening.

“This rally reflects growing investor confidence in Zambia’s copper sector recovery following the drought,” said Danny Greeff, co-head of Africa strategy at ETM Analytics. “If production momentum holds, the currency has room for further medium-term appreciation.”

Zambia is on track for record copper output this year, benefiting from a surge in global prices, up more than 20%, amid supply disruptions at major mines elsewhere.

That strength has positioned Zambia as one of the few countries where production is rising.

The mining sector’s resilience has been reinforced by ongoing investment from firms such as First Quantum Minerals Ltd., according to James Johnstone, co-head of emerging and frontier markets at Redwheel.

“The copper price rally is a major boost for government revenues and GDP growth,” Johnstone said. “We see the potential for a decade of expansion, much like the early 2000s.”

In August, Zambia’s economy reached a milestone it hadn’t seen in two years, as the country recorded its lowest inflation rate in that period, a sign that a stronger kwacha and firm commodity prices are helping to ease price pressures.

The Bank of Zambia projects that inflation will return to its 6–8% target range by the first quarter of 2026, averaging around 13.3% in 2025.

If the kwacha maintains its momentum and copper prices stay elevated, Zambia could enter a sustained period of price stability, boosting growth prospects and offering long-awaited relief to households struggling with high living costs.