By Hans Buchmann

The Zambian Kwacha has been performing remarkably well against major international currencies, and in my view, this is not happening by chance.

The strengthening of the Kwacha reflects growing confidence in Zambia’s leadership and governance. Investors are increasingly willing to take risks in the country, resulting in higher levels of foreign trade and a steady inflow of investment capital.

President Hakainde Hichilema came into office with strong momentum and has maintained a clear economic direction. Among the most visible achievements are the International Monetary Fund programme and the positive impact of stronger global copper prices.

However, some of the most important accomplishments are less visible.

Strategic investments in the energy sector are laying the foundation for long-term economic growth. Reliable electricity is one of the most critical ingredients for national development, and the benefits are already beginning to be felt.

Government is also focusing on the fundamentals by improving tax collection, safeguarding public revenue, and addressing corruption. These may appear to be simple measures, but they are essential to building a stable and credible economy.

The Constituency Development Fund has also helped channel resources into communities, supporting local economic activity and creating opportunities at the grassroots level.

All of these factors are positive for the Kwacha.

Controlling inflation remains one of the most important priorities. As the local currency strengthens, businesses should gradually adjust prices to reflect lower import costs. While exchange rate movements do not immediately reduce the cost of living, they can contribute to improved affordability over time.

At the same time, it is important to recognize that the exchange rate itself is not the ultimate measure of economic success.

What matters most to ordinary citizens is the price of everyday essentials such as eggs, butter, bread, and other basic household goods.

Looking ahead over the next decade, I am optimistic that Zambia can maintain a stable economic trajectory if sound policies continue and political stability is preserved.

In my view, energy will be the defining factor of Zambia’s economic future.

Every sector of the economy, from mining to manufacturing to small businesses, depends on reliable and affordable power. When electricity is available and sufficient, businesses can grow, jobs can be created, and investment can flourish.

The opportunities in Zambia are significant.

Sometimes, all it takes is a closer look and the willingness to challenge ourselves to do better.