Finance and National Planning Minister Dr Situmbeko Musokotwane has credited the recent appreciation of the Zambian Kwacha to increased foreign currency inflows from the mining sector, alongside other key factors that have bolstered the nation’s economy. Speaking in an interview on Monday, Dr Musokotwane emphasized the role of sound policies implemented by the United Party for National Development (UPND) government in restoring investor confidence across Zambia’s vital economic sectors.
“My reading of the key factors are as follows: number one, we are seeing a bit more money coming through the mining sector through taxes that they pay and, of course, increasing production that is taking place,” Dr Musokotwane explained. He noted that since 2021, Zambia has consistently highlighted the mining industry as central to stabilizing and strengthening the Kwacha.
The Finance Minister pointed out that the government’s focus on creating a conducive investment climate has encouraged both domestic and foreign investors, leading to increased economic activity and foreign currency inflows. These inflows have had a direct positive impact on the Kwacha’s exchange rate.
Dr Musokotwane also attributed the currency’s improvement to broader fiscal and monetary policies aimed at stabilizing the economy. Efforts to control inflation, manage public debt, and promote sustainable growth have collectively contributed to enhancing the Kwacha’s value.
The revival of investor confidence, according to the minister, reflects Zambia’s growing economic resilience and the government’s commitment to implementing reforms that support key sectors beyond mining, including agriculture, manufacturing, and services.
The strengthened Kwacha is expected to have multiple benefits for the economy, such as reducing the cost of imported goods and improving purchasing power for Zambians. It also signals to international markets that Zambia is on a stable path to economic recovery.
As Zambia continues to navigate global economic uncertainties, Dr Musokotwane’s remarks underscore the importance of sustained policy efforts and sectoral growth to maintain and build on recent gains. The mining sector’s contribution remains vital, but diversification and investor confidence will be key drivers of long-term economic stability.
The government’s positive outlook aligns with the optimism seen among investors and businesses, many of whom welcome the improved currency performance as a sign of Zambia’s economic potential and commitment to prudent governance.