Kopakopa Sees Kwacha Strengthening to K15 on Copper Windfall, Farm Inflows

Lusaka – The Zambian kwacha could extend its recent rally and strengthen to about K15 per U.S. dollar this year, buoyed by higher output in mining and agriculture and a surge in foreign currency inflows, according to economist Naylor Kopakopa.

In an interview with Phoenix News, Mr. Kopakopa said the currency’s rebound is being underpinned by rising global copper prices, which are set to lift Zambia’s export receipts and shore up the country’s foreign exchange position.

“Copper remains Zambia’s single most important export, and the recent upswing in prices is translating directly into stronger forex earnings,” he said. “That, in turn, supports the kwacha.”

The gains are likely to be reinforced by higher government revenues from copper-related taxes, which Mr. Kopakopa expects to improve fiscal buffers and market confidence two key factors for currency stability.

He added that seasonal inflows from agriculture will provide another tailwind. As farmers complete sales of maize from the 2024/2025 farming season, foreign exchange is expected to flow into the economy, further easing pressure on the currency.

The kwacha has already staged a sharp recovery in recent weeks, trading between K20 and K21 per U.S. dollar, a notable improvement from earlier levels. If commodity prices remain firm and export volumes continue to rise, Mr. Kopakopa believes the currency could push stronger in the months ahead.

Still, he cautioned that sustaining the momentum will depend on disciplined fiscal management, stable global conditions and continued gains in production across key sectors.