The Bank of Zambia (BoZ) says strong foreign exchange inflows from the mining sector helped the kwacha appreciate by nearly 15 per cent against the United States dollar in the first quarter of 2026. BoZ Governor Denny Kalyalya said the local currency appreciated by 14.8 per cent against the dollar due to increased inflows from …
Zambia Kwacha gains 15% as mining forex inflows surge
The Bank of Zambia (BoZ) says strong foreign exchange inflows from the mining sector helped the kwacha appreciate by nearly 15 per cent against the United States dollar in the first quarter of 2026.
BoZ Governor Denny Kalyalya said the local currency appreciated by 14.8 per cent against the dollar due to increased inflows from mining companies and foreign financial institutions.
Dr Kalyalya said net foreign exchange sales by mining companies rose to US$626 million in the first quarter of the year, while mining tax remittances to the central bank amounted to nearly US$290 million.
He said total foreign exchange liquidity supplied by the mining sector increased to more than US$915 million, up from about US$759 million recorded in the previous quarter.
Dr Kalyalya further disclosed that foreign financial institutions also contributed more than US$542 million to the market, improving overall liquidity in the economy.
He said the strong performance of the mining sector continues to play a key role in stabilising the foreign exchange market and supporting broader economic recovery.
Dr Kalyalya said Zambia’s medium-term economic outlook remains positive, with mining expected to remain one of the main drivers of growth alongside agriculture and electricity generation.
He said the economy is projected to grow by an average of 4.9 per cent between 2026 and 2028, despite uncertainties linked to the conflict in the Middle East and possible adverse weather conditions associated with El Niño.
Dr Kalyalya was speaking during the ZANACO networking breakfast in Kitwe at the ongoing Copperbelt Agricultural, Mining and Industrial Networking Enterprise (CAMINEX).
Meanwhile, ZANACO says Zambia’s mining sector remains central to the country’s economic recovery and future growth prospects.
ZANACO Chief Risk Officer Mutisunge Zulu said the country recorded about 891,000 tonnes of copper production in 2025, the highest output since independence, with production expected to exceed one million tonnes in 2026.
By Teverai Dzeka
