UPND Has Revived Zambia's Economy - Former BOZ Governor Fundanga

Kwacha's surge to K18 against the dollar reflects broader turnaround in copper, fiscal discipline and food security

Former Bank of Zambia (BOZ) governor Dr Caleb Fundanga has declared that the UPND administration has successfully revived the country's economy, pointing to the Kwacha's remarkable appreciation as clear evidence of the turnaround.

Speaking on the strength of the local currency, currently trading at around K18 against the United States dollar, Dr Fundanga said the performance left no room for doubt.

"It's the current government running the economy. The mines — they have brought in a lot of new mining companies here, we are producing. Even the old ones which were discarded have been brought back," he said. "The Kwacha is excellent. I'm happy to be associated with an economy that is doing very well. We laid the foundation, but things were destroyed by others. Now they have revived it."

The former central bank chief's assessment comes amid a string of indicators that have placed Zambia among sub-Saharan Africa's top-performing economies. The Kwacha has appreciated by more than 34 percent against the dollar over the past twelve months, earning recognition as one of the world's best-performing currencies entering 2026. Inflation dropped to a single digit of 9.4 percent in January 2026 — the first time the rate has fallen below 10 percent since early 2023.

Dr Fundanga singled out the mining sector as a central pillar of the recovery, noting that copper output and prices had reached unprecedented levels.

"The copper industry has done very well — record production. The price has also reached US$15,000 per metric tonne. We've never had this kind of performance. If the international price of copper goes up and production goes up, it means there is more forex coming into the country," he said.

The data supports his optimism. Zambia's copper production rose 12 percent in 2024 to 820,676 metric tonnes, driven by the resumption of activity at Konkola Copper Mines and Mopani Copper Mines. Output surged a further 30 percent year-on-year in the first quarter of 2025, with the government targeting the symbolic milestone of one million tonnes — a national record. Major investors including Anglo American, Barrick Gold and KoBold Metals have committed significant capital to expanding operations.

The mining-driven confidence has transformed Zambia's financial markets. The Lusaka Securities Exchange All Share Index gained 56 percent in 2025 — 84 percent in dollar terms — among the strongest performances globally, while the Copperbelt Energy Corporation became Zambia's first billion-dollar company.

Dr Fundanga also credited the Bank of Zambia and government fiscal management for the turnaround.

"They have done very well — they must be congratulated. We are producing enough food, we don't have to import food," he said. "Most importantly, if the government is running its affairs properly then you can do well. Management of the fiscal space is excellent. All these factors combine to produce the excellent results we are talking about."

The International Monetary Fund has endorsed this trajectory, forecasting GDP growth of up to 6.6 percent for 2025 and 6.4 percent in 2026, while S&P Global Ratings upgraded Zambia's sovereign credit rating citing strong copper output and improved fiscal performance. The country's 2024 debt restructuring reduced public debt from 126 percent of GDP to approximately 100 percent, freeing resources for investment in health, education and infrastructure.

For a nation that became the first in Africa to default during the COVID-19 pandemic, the convergence of a resurgent mining sector, a strengthening currency, declining inflation and disciplined fiscal management represents a remarkable reversal of fortune.

Additional reporting based on data from the Bank of Zambia, Zambia Statistics Agency, IMF, World Bank and S&P Global Ratings.