M’MEMBE CASTS DOUBT ON KWACHA GAINS, WARNS OF “DANGEROUS” APPRECIATION
Lusaka- 8thJanuary, 2026
By Mukuka Nawa
Socialist Party President and 2026 People’s Pact presidential candidate Dr. Fred M’membe has downplayed the much-publicised appreciation of the Zambian Kwacha, warning that the strengthening currency may be masking deeper economic problems and threatening local production.
In a strongly worded commentary posted on his official Facebook page monitored by CIC Press Team, Dr. M’membe questioned the celebratory tone surrounding the Kwacha’s recent gains, arguing that an overly strong local currency is just as harmful as a weak one.
He suggested that the current appreciation could be undermining exporters, local manufacturers and jobs, while disproportionately favouring importers.
Dr. M’membe noted that Zambia’s economy is split between exporters and importers, and that the current trajectory of the Kwacha risks tilting the balance unfairly. According to him, exporters who earn in US Dollars but incur costs in Kwacha are likely to see their profit margins eroded as the currency strengthens, potentially reducing investment and slowing economic activity.
He further warned that while importers may temporarily benefit from a stronger Kwacha, the long-term consequences could be devastating for local industry.
Cheaper imports, he said, threaten to flood the market and outcompete locally manufactured goods, especially in a country where the cost of production remains high and largely uncompetitive..
Dr. M’membe cautioned, casting doubt on claims that the Kwacha’s appreciation is an unqualified success.
The Socialist Party leader also expressed scepticism about the drivers behind the currency’s rapid gains, questioning whether the appreciation is truly a result of strong economic fundamentals.
He challenged authorities to explain whether factors beyond high copper prices are at play, and whether the Bank of Zambia is quietly intervening to prop up the currency.
Dr. M’membe argued that without transparency, Zambians risk being misled into believing the economy is improving when, in reality, structural weaknesses remain unresolved.
Monitoring Zanaco Bank’s live exchange rate for today at 18:10, the US Dollar was buying at K19.65 and selling at K20.03.
CIC PRESS TEAM
Fred M’MEMBE writes:
ZAMBIAN KWACHA GAINS
We take note of the continued appreciation of the Kwacha, which is a welcome news for Zambia. However, it is true that too strong a Kwacha is not good and two weak a Kwacha is not good either.
So where do we stand? The economy has two segments, exporters and importers. Exporters lose out in Kwacha terms when the Kwacha becomes too strong, whilst importers gain when the Kwacha becomes too strong. The opposite is also true. Therefore, we need to surgically analyse our economy and ensure that a balance is struck, which benefits both exporters and importers. This balance is critical to ensure both exporters and importers are in equilibrium with regard to the exchange rate.
The critical path for exporters whose revenue is in Dollars and costs are in Kwacha is that Kwacha gain should not significantly erode their profit margin.
As regards imports, the Kwacha gain is welcome because it reduces the cost of imports. However, this same gain can undermine locally manufactured goods once it becomes cheaper to import than produce locally. It’s worth noting that the cost of production in Zambia is sub optimal. If not well managed factories can close and instead import cheaper goods.
On a final note, we are also curious to understand the key drivers that are driving the gain. If we isolate the high copper price, what else is contributing to this rapid gain. Is there any intervention from the Central Bank, or is it purely economic fundamentals that have shifted positively? It is critical that Zambians clearly understand what economic fundamentals have induced this gain.
Fred M’membe
President of the Socialist Party and 2026 People’s Pact Presidential Candidate
Does Dr. M’membe know what is good for our country? All he cares about is putting down the President, Mr. Hichilema. Nothing else matters to him.
He is afraid of losing another of his favourite talking points after the cost of mealie meal and loadshedding fell by the wayside. Now the exchange rate is within the cross hairs. Must be giving him sleepless nights.
What have you ever believed and appreciated which the UPND government has achieved? We know that you could only support what Maduro did before he lost power. Remain as a doubting Thomas, the country is moving.
Is it not Dr. M’membe and others who have been bitching ati kwacha ja kwela, and were blaming HH that he had promised it to be around 17k, now he is the first one to comment against kwacha, appreciating, really?
We Lesa, bushe aba ba opposition wabadobele kwisa?
Amwe economist now
Interesting observation indeed. But can Mr M’membe also educate us the laymen, why
developed countries such as the UK and USA, don’t suffer the consequences of a strong currency as he is suggesting here.
I am surprised Mr Mmembe has to-date not condemned the abduction of his buddy Maduro. He should take on Trump.
Everyone knows this stuff membe is saying.
But is he saying it because he wants to share with other zambians, NO.
He is only sharing it because he is in pain. Fimba upoke. The guy doesnt know peace especially when HH is done great. He is on the way to turning 70.
Zambia is instead, getting and going younger. When will it be Fred Membe time? Never !He knows that as long as HH is still around, no one would consider fred membe for president Its hard and painful to be Fred Membe, a fellow Permanently in pain from his swlf inflicted rivalry and hatrage for HH. By the way, Fred Membe, how do you feel today that HH is indeed President after you wrote a thousand times in your Post newspaper that he would never be President of Zambia???
Now its you who will never be President of Zambia..