Keith Mukata pegs Zambian Kwacha appreciation as real

By Fulman Mukobeko

Former Finance Deputy Minister Keith Mukata has parried assertions that the recent appreciation of the Kwacha is fictitious and not supported by economic fundamentals.

In a statement made available to the media, Mr. Mukata, formerly Patriotic Front (PF) Chilanga Member of Parliament (MP) clarified that the appreciation of the Kwacha was anchored in real and observable fundamentals. Mukata said it would be inaccurate to dismiss the recent appreciation of the Zambian Kwacha as artificial or unsupported by fundamentals.

“I have noted recent remarks by some of our colleagues suggesting that the appreciation of the Kwacha is “fictitious” and not supported by economic fundamentals. Having previously served as Deputy Minister of Finance, under 6th Republican President Dr Edgar Chagwa Lungu’s PF Administration (from 2011 until 2018) and with an appreciation of how exchange-rate dynamics work, I wish to respectfully clarify that the recent strengthening of the Kwacha is anchored in real and observable fundamentals,” he clarified.

Mukata added: “The currency’s performance reflects improving economic conditions and growing confidence in Zambia’s policy direction. Sustaining these gains will require continued discipline, structural reforms, and a shared commitment to stability across the political spectrum”.

He said Zambia had made significant progress in restoring macroeconomic stability.

According to the Former Finance Deputy Minister, inflation has declined to single digits, fiscal consolidation has reduced pressure on the domestic market, and the on-going debt restructuring process has improved confidence among investors and cooperating partners.

“…These developments have strengthened Zambia’s external position and reduced uncertainty—key ingredients for exchange-rate stability. Foreign exchange inflows have improved significantly,” said Mukata.

He observed that the higher copper production and prices, alongside growing non-traditional exports and increased investor confidence, have enhanced Foreign Exchange (FX) supply in the market.

“… At the same time, prudent monetary policy and improved coordination between fiscal and monetary authorities have supported a more stable and predictable currency environment. Confidence is in itself a fundamental, as markets respond not only to currency flows, but to credible policy direction,” Mukata said.

The Former Chilanga Member of Parliament said Zambia’s reform programme, supported by international partners and underpinned by fiscal discipline, had restored credibility in the economy.

“The strengthening of the Kwacha reflects that restored confidence,” said Mukata.

This is not to suggest that all challenges have been resolved or that exchange-rate movements alone define economic success,” he said.

Mukata said the key task ahead was to ensure that macroeconomic stability translates into tangible benefits for citizens—lower prices, more jobs, and sustained growth. Fumani Mukobeko Kwilanzi News Zambia Kwilanzi New Zambia Rainbow Newspaper Zambia Limited Rainbow Newspaper Zambia Limited Rainbow Television Zambia Limited Rainbow Zambia Rainbow Newspaper Limited Rainboweducation Zambia Rainbow Tourism Rainbow Traveltourismzambia Zambian Developmental Media Alliance (ZADEMA) Zambian Children Young People and Women in Development Zambian Menstrual Hygiene Zambian Media Taskforce on Ending Child Marriages Zadema Zambia