By Cecilia Chiluba/Zambia/Lusaka
ActionAid Zambia has urged the Government to translate the recent gains of the Kwacha into lower living costs for ordinary citizens.
The Zambian Kwacha has recently been cited as the best -performing currency in the world, appreciating significantly over the last few months.
According to Bank of Zambia, the Kwacha strengthened by 4.1 percent during the fourth quarter of 2025, to trade at K22.80 against the US dollar, while the year-to-date appreciation stands at 14.2 percent.
The key drivers are continued strong supply of foreign exchange by the mining sector and foreign financial institutions, including the impact of recent policy reforms, such as the issuance of Currency Directives on December 26, 2025.
Commenting on currency gains, ActionAid Zambia Country Director Faides TembaTemba said while the organization commends the Government for its efforts to maintain and improve key macroeconomic indicators, the gains must result in tangible relief for citizens.
“The year -to-year rate of appreciation of the Kwacha against the US Dollar, standing at 14.2 percent , reflect s improved macroeconomic confidence and positive economic signals,” she noted.
Ms. TembaTemba stated that a stronger Kwacha should therefore, lead to reduced prices of key commodities such as fuel, which directly affect the cost of living.
She stressed that a strong Kwacha only matters if it results in lower prices, better social services, and dignified livelihoods for the most vulnerable Zambians
Ms. TembaTemba further observed that although inflation has shown significant improvement at 9.4 percent, it remains above the Bank of Zambia’s 6–8 percent target range, meaning commodity prices are still high and households continue to struggle to meet their basic needs.
“Fiscal consolidation measures under the IMF’s Extended Credit Facility (ECF) continue to present major hurdles in addressing the cost -of-living crisis. Specifically, the implementation of cost -reflective electricity tariffs is driving up the price of power above what many poor families and vulnerable households can afford.”
“For people in informal settlements, rural communities, and low -income households, high cost of electricity tariffs, food, and transport costs are deepening poverty which , in 2022, was recorded at 64.3 percent of the population living on less than US$2.15 per day and inequality,” Ms. TembaTemba said.
She urged the Government to take advantage of favourable conditions, including good rainfall and high copper prices, to address the persistent high cost of living, rising poverty levels, and widening inequality.
“Following the 6th Review of the IMF programme, we call on the Government to take stock of the programme’s performance and evaluate how best to protect social spending, address inequality, and reduce poverty,” Ms. TembaTemba stressed.
Ms. TembaTemba reiterated the need for the Government to resist harmful austerity measures that undermine public service delivery and compromise human rights.
