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Why Zambia's currency is the best performer against the dollar in 2026

Botswana can learn from this

Author

Boago Sephutho
January 16, 2026

Good morning, let’s get into it!

Something has been happening to Zambia that good but not only it but other African countries as well. As of early January 2026, the Zambian Kwacha (ZMW) has indeed been identified by financial analysts as one of the best-performing currencies in the world against the US dollar.

While it isn't the only African currency doing well (the South African Rand and Ghanaian Cedi have also seen gains recently), Zambia is currently the standout "star" performer in terms of how fast it is appreciating.

There are three specific economic engines driving this sudden surge:

1. The "Copper Super-Cycle"

This is the biggest factor. Zambia is Africa's second-largest copper producer, and the global price of copper has hit record highs (surpassing $13,000 per ton in recent reports).

  • Why it matters: When copper prices rise, mining companies in Zambia earn significantly more US dollars. To pay taxes and operational costs within Zambia, they must convert those dollars into Kwacha. This massive influx of dollars and demand for Kwacha drives the currency's value up.

2. Debt Restructuring Success

For a long time, Zambia's economy was clouded by a massive debt default. However, by late 2025 and entering 2026, the government successfully finalized restructuring deals for over 92% of its external debt.

  • The Impact: This removed the "default" label from the country (leading to credit rating upgrades by agencies like S&P). International investors, who were previously scared off by the debt crisis, are now comfortable bringing money back into the country.

3. Investor Confidence & The Stock Market

The currency surge is mirroring a boom in the Lusaka Securities Exchange (LuSE).

  • Because of the debt deal and high copper prices, foreign capital is flowing into Zambian stocks.

  • To buy these stocks, foreign investors have to sell their Dollars and buy Kwacha, further strengthening the local currency.

Is it the "only" one?

Not entirely, but it is the most dramatic.

  • South Africa (ZAR): The Rand has also gained ground recently (around 12% appreciation in late 2025/early 2026) due to similar high commodity prices and improved investor sentiment.

  • Ghana (GHS): The Cedi has rebounded significantly after its previous crash.

Summary: Zambia feels like the outlier because it is recovering from a much deeper hole (the default) at the exact same time that its main export (copper) is exploding in value. This "double engine" effect is creating the rapid gains you are seeing.

Botswana can learn a thing or two from these countries especially Zambia, that way, as the Pula strengthens, we will be able to afford life again and if you’re already well financially

Sources