Zambia’s new-found political stability boosts local currency

By Audrey Simango
Posted on Friday, 3 June 2022 15:17, updated on Tuesday, 7 June 2022 11:41

Zambian Kwacha bills

Since the election of Hakainde Hichilema (HH) as president in August 2021, the Zambian Kwacha continues to perform well on the back of favorable political sentiment, says Bank of Zambia officials.

“Following the general elections on 12 August, the Kwacha gained 30% against the dollar to hit K15.89 ($0.93),” Besnat Mwanza, the director of communications at the Bank of Zambia (BOZ) tells The Africa Report.

It is a remarkable improvement from July 2021 when the Kwacha fell to K22.6 per dollar.

“There was euphoria over HH’s win, [because] of widespread recognition that [defeated president] Edgar Lungu’s economic risk-taking was unsustainable,” Stephen Chan, professor of Africa’s economies at the SOAS, University of London, tells The Africa Report.