Zambia’s kwacha strengthened on Monday, moving in step with a broader rally in the currencies of African metal producers, as surging copper prices boosted expectations of higher export earnings.
The kwacha gained 0.6% against the US dollar, reaching its strongest level since early November. The move came as copper prices surged towards a record $13,000 a tonne in London, fuelled by concerns that global supplies are tightening. Demand has been driven higher by US companies accelerating imports ahead of potential tariff increases.
Zambia is Africa’s second-largest copper producer, after the Democratic Republic of Congo. The Congolese franc has also strengthened in recent weeks, reflecting rising confidence in commodity-linked currencies. Elsewhere, currencies in Ghana, Africa’s largest gold producer, and South Africa have also benefited from higher metal prices.
Africa’s commodity-exporting economies are generally well positioned to gain from the rally in gold and other precious metals, according to Brendan McKenna, an emerging-markets economist and foreign-exchange strategist at Wells Fargo Securities.
“South Africa remains an economy that is heavily influenced by mining activity and the price of precious metals,” McKenna said. “Another strong rally in gold in 2026 could support the rand, particularly if the Federal Reserve begins cutting interest rates early next year.”
Copper prices have risen by more than a third this year, and the kwacha has closely followed that trend. As a result, Zambia’s currency has strengthened by about 24% against the dollar so far this year.
In a related policy move, the Bank of Zambia has ordered that all domestic transactions be settled in kwacha rather than US dollars, according to a government gazette issued on Friday. Mining companies were granted exemptions, allowing them to continue paying taxes in dollars.
Overall, the combination of rising commodity prices and supportive domestic policy measures has helped improve sentiment around Zambia’s currency, alongside other African economies tied closely to global metals markets.
