Kwacha Strengthens Against Dollar

The Kwacha has appreciated to approximately K24 per US dollar as of mid June 2025, marking a significant turnaround for a currency that has historically struggled against major international currencies. 

Economic expert Trevor Hambayi told the Zambian Business Times that this improvement stems from a fundamental decrease in local currency demand for foreign exchange. This development could translate into lower prices for essential imported goods like fuel, cooking oil, and medicines that Zambian families depend on daily.

Dr. Lubinda Haabazoka, a renowned economist, described the currency's performance as "a strong indicator that the country is on a potential path to economic recovery," offering hope to those who have endured years of economic hardship.

The economist attributed much of the Kwacha's strength to an exceptional agricultural season, particularly strong harvests of maize and soya beans.

"In previous years, we relied more heavily on imported food to meet domestic demand, which increased the need for foreign exchange," Dr. Haabazoka explained. This year's bumper harvest means families can access locally-grown food at more affordable prices while reducing the country's need to spend precious foreign currency on imports.

For rural farming communities, the strong harvest represents both food security and potential income from surplus sales.

Adding to the optimism, government officials recently announced an $11 billion investment in the mining sector, which could create thousands of jobs across the country.

Dr. Haabazoka noted that such investment would benefit not only miners but workers in transport, engineering, and supply chains.

"This will stimulate local economies, improve household incomes, and enhance access to essential services such as education and healthcare," he said, highlighting how currency stability and investment can directly improve lives in both urban townships and rural villages.

The strengthening Kwacha, combined with renewed investor confidence, offers the nation hope that years of economic struggle may finally be giving way to stability and growth.