KWACHA APPRECIATION IS DUE TO ECONOMIC CONFIDENCE UNDER UPND GOVERNMENT – LUNGU
August 1, 2025
LUSAKA – Special Assistant to the President for Policy Compliance, Mr. Joseph Lungu, says the appreciation of the Kwacha is a result of growing investor confidence and strengthened economic fundamentals under the New Dawn administration.
Speaking in an interview at State House this morning, Mr. Lungu stated that the appreciation reflects “the confidence that stakeholders have in the economic management team and President Hakainde Hichilema’s leadership.”
He noted that several key factors have contributed to the strengthening of the local currency, including increased copper production, improved agricultural performance, and a surge in tourism.
“For instance, in 2021, Zambia recorded about 500,000 tourist arrivals. By 2024, that number rose to 2.2 million,” Mr. Lungu said, projecting even higher figures by the end of this year.
He explained that the increased inflow of U.S. dollars from exports and tourism is helping to balance demand and supply in the foreign exchange market, thereby supporting the Kwacha.
“It’s basically a supply and demand situation,” he said, pointing to rising copper prices and strong harvests as major contributors.
Mr. Lungu also emphasized that Zambia’s successful engagement with the International Monetary Fund (IMF) has played a vital role in boosting investor confidence, reinforcing fiscal discipline, and enhancing economic governance.
“The IMF-supported program is our program. It has created more confidence in the economy,” he added.
While acknowledging potential risks such as global economic instability, Mr. Lungu expressed optimism about the Kwacha’s future performance.
“From where we are sitting, it’s very unlikely the Kwacha will depreciate like we saw in the past,” he concluded.
(c) UPND MEDIA TEAM
Broad stroke without substance. Ba Lungu stop waffling. A man in your position should make statements that are news worthy and not sound bites without substance. Politicans do that kind of thing…we expect better from you. Projections? Based on what? Arrivals….were they connecting to other destinations and you want to suggest they were tourist? How much did those spend to add to our foreign reserves?
The other two sectors you speak of their output is only one year. What factors would make their sustainability less volatile.
Sound bites dont inspire confidence. Are you serious about the task?
Makes sense, but also deal with the corrupt, Zambians, we’re tired
Indigo…lol your alias is so obvious…keep trying to change. One day it will work….kikikkkii….