Standard Chartered CEO Praises Economic Growth
Standard Chartered Zambia Chief Executive Officer Sonny Zulu has expressed strong optimism about the country's economic trajectory, citing significant improvements in key macroeconomic indicators that are creating an increasingly favourable business environment.
In an interview with ZNBC in Kitwe, Mr Zulu highlighted improvements in inflation, exchange rates, and other fundamental economic metrics as signs that Zambia's economy is on a positive path. The banking sector, he noted, remains committed to supporting government efforts by providing affordable capital to businesses across the country.
"The current economic environment is increasingly favorable, and we expect lending rates to decline, which would provide a significant boost for business owners nationwide," Mr Zulu stated.
Robust GDP Growth Projections Signal Economic Recovery
Mr Zulu's optimistic outlook is backed by encouraging economic data that shows Zambia's recovery gaining momentum. The International Monetary Fund (IMF) has projected that Zambia's real GDP growth will reach 5.8 percent in 2025, marking a substantial improvement from the estimated 4 percent growth recorded in 2024.
This growth momentum is expected to be supported by a rebound in agricultural output, increased copper production, and a gradual recovery in electricity generation, according to the IMF's latest assessment following their Article IV consultation with Zambian authorities.
The positive trajectory represents a remarkable turnaround from previous years, with the economy demonstrating resilience despite facing significant challenges including severe drought and global economic headwinds.
Mining Sector Drives Economic Transformation
A key driver of Zambia's economic resurgence has been the revitalization of its mining sector, particularly copper production. Zambia's copper production surged by approximately 30% year-on-year in the first quarter of 2025, reaching roughly 224,000 metric tons compared to around 173,000 metric tons in the same period of 2024, according to Mines Minister Paul Kabuswe.
The remarkable performance has been attributed to higher production by two major companies, Konkola Copper Mines and Mopani Copper Mines, reflecting the success of the government's strategy to revamp strategic mining operations.
The government has set an ambitious production target of 1 million tons for 2025, which would establish a national record. With copper prices trading at approximately $9,818 per ton on the London Metal Exchange, the increased production is generating substantial foreign exchange earnings for the country.
Currency Strengthens as Reserves Build
The economic improvements have translated into tangible benefits for the Zambian kwacha. After depreciating 8% in 2022, 30% in 2023, and 8% in 2024, the kwacha has strengthened by 19% against the US dollar in 2025, according to Secretary to the Treasury Felix Nkulukusa.
This currency appreciation has been supported by rising foreign exchange reserves. Gross international reserves increased to $4.5 billion (equivalent to 4.6 months of import cover) at the end of March 2025, up from $4.3 billion at the end of December 2024.
The improvement in reserves has been mostly due to net Bank of Zambia forex purchases from the mines, non-tax foreign exchange revenue and project receipts, highlighting the positive impact of increased mining activities on the country's external position.
Debt Restructuring Progress Boosts Investor Confidence
The New Dawn government has made significant strides in addressing its debt challenges, which has contributed to improved investor confidence. The country has achieved over 92% Agreement in Principle with its creditors amounting to $12.4 billion, with $4.01 billion restructured in 2024 and $2.70 billion in 2025.
Following the successful debt restructuring, Zambia's bonds have become top performers in some of the riskiest parts of the global debt market, signaling renewed international confidence in the country's economic management.
Investment Conference Attracts Major Commitments
The positive economic momentum has attracted significant international investment interest. In July 2025, Zambia launched the inaugural "Invest in Zambia International Conference" which resulted in the signing of multiple MOUs and deals worth over 46.6 billion kwacha (US$2 billion), securing significant investments in the country's energy and agricultural sectors.
Additionally, Growth Investment Partners (GIP) Zambia, a partnership between British International Investment, Swedfund and Zambia's National Pension Scheme Authority, was launched with 1.6 billion kwacha ($70 million) in funding for small and medium-sized businesses.
Inflation Expected to Moderate
While inflationary pressures remain a concern, the outlook is improving. Headline inflation is expected to gradually decline to 11 percent by end-2025, providing relief to businesses and consumers alike.
The Central Bank of Zambia has maintained a tight monetary policy stance, with the policy rate at 14.5 percent since February 2025, to help anchor inflation expectations and support the currency's stability.
Outlook Remains Positive Despite Challenges
Looking ahead, economic prospects remain favorable, though authorities acknowledge the need for continued vigilance. The medium-term outlook is supported by ongoing structural reforms aimed at improving the business environment, strengthening governance, and fostering private sector-led growth.
As Standard Chartered's Mr Zulu noted, the combination of improving macroeconomic fundamentals and the banking sector's commitment to providing affordable financing creates a supportive environment for business expansion and economic growth.
The positive developments reflect the success of reforms implemented under the New Dawn Government's economic program, though officials stress the importance of maintaining policy discipline and addressing remaining challenges to ensure sustainable and inclusive growth.